Item 16. FORM 10-K SUMMARY

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Item 16. FORM 10-K SUMMARY

None.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on the 23rd day of February, 2023.


									AMERICAN TOWER CORPORATION

									By:			/S/ THOMAS A. BARTLETT
												Thomas A. Bartlett President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been duly signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.


Signature	Title	Date

/S/ THOMAS A. BARTLETT	President and Chief Executive Officer (Principal Executive Officer), Director	February 23, 2023
Thomas A. Bartlett

/S/ RODNEY M. SMITH	Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)	February 23, 2023
Rodney M. Smith

/S/ ROBERT J. MEYER	Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)	February 23, 2023
Robert J. Meyer

/S/ KELLY C. CHAMBLISS	Director	February 23, 2023
Kelly C. Chambliss

/S/ TERESA H. CLARKE	Director	February 23, 2023
Teresa H. Clarke

/S/ RAYMOND P. DOLAN	Director	February 23, 2023
Raymond P. Dolan

/S/ KENNETH R. FRANK	Director	February 23, 2023
Kenneth R. Frank

/S/ ROBERT D. HORMATS	Director	February 23, 2023
Robert D. Hormats

/S/ GRACE D. LIEBLEIN	Director	February 23, 2023
Grace D. Lieblein

/S/ CRAIG MACNAB	Director	February 23, 2023
Craig Macnab

/S/ JOANN A. REED	Director	February 23, 2023
JoAnn A. Reed

/S/ PAMELA D. A. REEVE	Chair of the Board, Director	February 23, 2023
Pamela D. A. Reeve

/S/ DAVID E. SHARBUTT	Director	February 23, 2023
David E. Sharbutt

/S/ BRUCE L. TANNER	Director	February 23, 2023
Bruce L. Tanner

/S/ SAMME L. THOMPSON	Director	February 23, 2023
Samme L. Thompson

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


	Page

Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)		2

Consolidated Balance Sheets as of December 31, 2022 and 2021		5

Consolidated Statements of Operations for the Years Ended December 31, 2022, 2021 and 2020		6

Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2022, 2021 and 2020		7

Consolidated Statements of Equity for the Years Ended December 31, 2022, 2021 and 2020		8

Consolidated Statements of Cash Flows for the Years Ended December 31, 2022, 2021 and 2020		9

Notes to Consolidated Financial Statements		10

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and the Board of Directors of American Tower Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of American Tower Corporation and subsidiaries (the “Company”) as of December 31, 2022 and 2021, the related consolidated statements of operations, comprehensive income, equity, and cash flows, for each of the three years in the period ended December 31, 2022, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 23, 2023, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Revenue Recognition for Significant Contract Modifications - Refer to Notes 1 and 4 to the financial statements.

Critical Audit Matter Description

The Company’s contracts with major tenants are often governed by a master lease agreement that contains terms and provisions governing the tenant’s right to use the Company’s telecommunications sites and the land on which the sites are located (the “lease component”) and the tenant’s responsibility for reimbursement of various costs incurred by the Company in operating the telecommunications towers and supporting the tenant’s equipment as well as other services and contractual rights (the “non-lease components”). The master lease agreements contain both lease and non-lease components, may contain unusual or non-standard terms, and often pertain to many of the Company’s telecommunications sites. In the current year, the Company amended a master lease agreement with a major tenant.

Management of the Company exercised significant judgment in determining the appropriate revenue recognition for the amended master lease agreement, including the following:

Determination of the lease and non-lease components and whether they should be accounted for as a combined lease component or separately.

F-2

Determination of the stand-alone selling prices for each performance obligation in the master lease agreement if not accounted for with the lease component.
Determination of the fixed and variable consideration in the master lease agreement, the impact of cancellation and renewal provisions, the estimated term of each of the individual contracts impacted by the master lease agreement, and the pattern of recognition for each lease component or performance obligation.

We identified the amended master lease agreement with a major tenant as a critical audit matter because the audit effort required to evaluate the Company’s judgments in determining the appropriate revenue recognition for the impact of a multi-faceted, complex master lease agreement entered into with the major tenant was extensive.

How the Critical Audit Matter Was Addressed in the Audit

Our principal audit procedures related to the Company’s amended master lease agreement with the major customer included the following:

We tested the effectiveness of internal controls related to the Company’s process for evaluating the proper accounting for the master lease agreement.
We evaluated the Company’s significant accounting policies related to the master lease agreement for reasonableness and compliance with the applicable accounting standards.
We evaluated the master lease agreement and performed the following procedures:

◦Obtained and evaluated the documents that were part of the overall master lease agreement.

◦Tested the Company’s identification of the significant terms for completeness and accuracy, including the identification of the lease and non-lease components, cancellation and renewal provisions, estimated term and fixed and variable consideration.

◦Tested the completeness and accuracy of leases subject to the master lease agreement.

◦Assessed the terms and provisions in the master lease agreement and evaluated the appropriateness of the Company’s application of their accounting policies, along with their use of estimates, in the determination of revenue recognition conclusions.

We tested the mathematical accuracy of the Company’s determination of revenue and the associated timing of revenue recognized in the financial statements.

Recoverability of goodwill and long-lived assets – India Reporting Unit - Refer to Notes 1, 3, 5, 16, and 22 to the financial statements.

Critical Audit Matter Description

The Company reviews goodwill for impairment at least annually or whenever events or circumstances indicate the carrying value of an asset may not be recoverable. Additionally, the Company reviews other long-lived assets to be held and used and which are subject to depreciation or amortization, such as property and equipment, tenant-related intangible assets, network location intangible assets, and right-of-use assets on operating leases for impairment whenever events, changes in circumstances or other evidence indicate that the carrying amount of the Company’s assets may not be recoverable. The Company's evaluation of recovery of goodwill involves the comparison of the carrying amount of a reporting unit inclusive of allocated goodwill to the fair value of the applicable reporting unit. The Company’s evaluation of the recovery of long-lived assets, involves a comparison of the carrying amount of the long-lived asset to the future undiscounted cash flows expected to be generated by the asset.

If these assets are determined to be impaired, the amount of impairment recognized is the amount by which the carrying amount of the assets exceeds their fair value. Fair value is generally determined using forecasted cash flows discounted using an estimated weighted average cost of capital. As of December 31, 2022, the India reporting unit had goodwill of approximately $881.6 million. As the fair value of the India reporting unit exceeded its’ carrying amount as of December 31, 2022, the Company determined that its related goodwill was not impaired. Other long-lived assets to be held and used in India at December 31, 2022 consisted of property and equipment, tenant-related intangible assets, network location intangible assets, and right of use assets of approximately $924.4 million, $379.5 million, $266.7 million and $668.9 million, respectively, after impairments were recorded during the year then ended of $58.6 million, $411.6 million, $38.4 million and $0.0 million, respectively.

F-3

We identified the evaluation of the recovery of goodwill and long-lived assets held in the Company’s India reporting unit, along with any related impairments, as a critical audit matter due to the significant judgments made by management to estimate the timing and amount of cash flows and related estimated fair values used in the impairment analyses. There was a high degree of auditor judgment in evaluating management's assumptions and estimates related to future tenant retention rates (specifically, a high degree of subjective auditor judgment was required to evaluate future revenues related to variability in receipts from a significant tenant in India), revenue growth rates, margin projections, the timing of future cash flows, the discount rate used and the determination of market multiples for the India reporting unit and related long-lived assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the assumptions and estimates of future tenant retention rates, revenue growth rates, and margin projections used to estimate the timing and extent of future cash flows, and the discount rate and the determination of market multiples used by management to estimate fair value, included the following, among others:

We tested the effectiveness of internal controls over management’s goodwill impairment evaluation, including those over the determination of the fair value of the India reporting unit.
We tested the effectiveness of internal controls over management’s long-lived asset impairment evaluation.
We evaluated management’s ability to forecast future tenant retention rates, revenue growth rates, margin projections and timing of future cash flows by comparing actual results to management’s historical forecasts.
We evaluated the reasonableness of management’s use of tenant retention rates, growth rates, margin projections and timing of future cash flows by comparing the forecasts to:

◦Historical results.

◦Internal communications to management and the Board of Directors.

◦Forecasted information included in analyst and industry reports for the Company and certain of its peer companies.

/s/ Deloitte & Touche

Boston, Massachusetts

February 23, 2023

We have served as the Company’s auditor since 1997.

F-4

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in millions, except share count and per share data)


	December 31, 2022		December 31, 2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	2,028.4	$	1,949.9
Restricted cash	112.3		393.4

Accounts receivable, net	758.3		728.9
Prepaid and other current assets	723.3		657.2

Total current assets	3,622.3		3,729.4
PROPERTY AND EQUIPMENT, net	19,998.3		19,784.0
GOODWILL	12,956.7		13,350.1
OTHER INTANGIBLE ASSETS, net	17,983.3		20,727.2
DEFERRED TAX ASSET	129.2		131.6
DEFERRED RENT ASSET	3,039.1		2,539.6
RIGHT-OF-USE ASSET	8,918.9		9,225.1
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS	546.7		400.9
TOTAL	$	67,194.5	$	69,887.9
LIABILITIES
CURRENT LIABILITIES:
Accounts payable	$	218.6	$	272.4
Accrued expenses	1,344.2		1,412.8
Distributions payable	745.3		642.1
Accrued interest	261.0		254.7
Current portion of operating lease liability	788.9		712.6
Current portion of long-term obligations	4,514.2		4,568.7
Unearned revenue	439.7		1,204.0
Total current liabilities	8,311.9		9,067.3
LONG-TERM OBLIGATIONS	34,156.0		38,685.5
OPERATING LEASE LIABILITY	7,591.9		8,041.8
ASSET RETIREMENT OBLIGATIONS	2,047.4		2,003.0
DEFERRED TAX LIABILITY	1,492.0		1,830.9
OTHER NON-CURRENT LIABILITIES	1,186.8		1,189.8
Total liabilities	54,786.0		60,818.3
COMMITMENTS AND CONTINGENCIES

EQUITY (shares in thousands):



Common stock: $0.01 par value; 1,000,000 shares authorized; 476,623 and 466,687 shares issued; and 465,619 and 455,772 shares outstanding, respectively	4.8		4.7
Additional paid-in capital	14,689.0		12,240.2
Distributions in excess of earnings	(2,101.9)		(1,142.4)
Accumulated other comprehensive loss	(5,718.3)		(4,738.9)
Treasury stock (11,004 and 10,915 shares at cost, respectively)	(1,301.2)		(1,282.4)
Total American Tower Corporation equity	5,572.4		5,081.2
Noncontrolling interests	6,836.1		3,988.4
Total equity	12,408.5		9,069.6
TOTAL	$	67,194.5	$	69,887.9

See accompanying notes to consolidated financial statements.

F-5

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except share and per share data)


	Year Ended December 31,
	2022		2021		2020
REVENUES:
Property	$	10,470.0	$	9,109.6	$	7,953.6
Services	241.1		247.3		87.9

Total operating revenues	10,711.1		9,356.9		8,041.5
OPERATING EXPENSES:
Costs of operations (exclusive of items shown separately below):
Property	3,156.4		2,585.3		2,189.6
Services	107.4		96.7		37.6
Depreciation, amortization and accretion	3,355.1		2,332.6		1,882.3
Selling, general, administrative and development expense	972.3		811.6		778.7
Other operating expenses	767.6		398.7		265.8
Total operating expenses	8,358.8		6,224.9		5,154.0
OPERATING INCOME	2,352.3		3,132.0		2,887.5
OTHER INCOME (EXPENSE):

Interest income	71.6		40.4		39.7
Interest expense	(1,136.5)		(870.9)		(793.5)
Loss on retirement of long-term obligations	(0.4)		(38.2)		(71.8)
Other income (expense) (including foreign currency gains (losses) of $449.4, $557.9, and $(216.4) respectively)	433.7		566.1		(240.8)
Total other expense	(631.6)		(302.6)		(1,066.4)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	1,720.7		2,829.4		1,821.1
Income tax provision	(24.0)		(261.8)		(129.6)

NET INCOME	1,696.7		2,567.6		1,691.5
Net loss (income) attributable to noncontrolling interests	69.1		0.1		(0.9)


NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON STOCKHOLDERS	$	1,765.8	$	2,567.7	$	1,690.6
NET INCOME PER COMMON SHARE AMOUNTS:
Basic net income attributable to American Tower Corporation common stockholders	$	3.83	$	5.69	$	3.81
Diluted net income attributable to American Tower Corporation common stockholders	$	3.82	$	5.66	$	3.79
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in thousands):
BASIC	461,519		451,498		443,640
DILUTED	462,750		453,294		446,104

See accompanying notes to consolidated financial statements.

F-6

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)


	Year Ended December 31,
	2022		2021		2020
Net income	$	1,696.7	$	2,567.6	$	1,691.5
Other comprehensive (loss) income:
Changes in fair value of cash flow hedges, each net of tax expense of $0	—		(0.0)		(0.2)
Reclassification of unrealized losses on cash flow hedges to net income, each net of tax expense of $0	—		0.1		0.3


Foreign currency translation adjustments, net of tax (benefit) expense of $(0.8), $(0.0), and $0.0, respectively.	(1,165.0)		(1,150.2)		(701.5)
Other comprehensive loss	(1,165.0)		(1,150.1)		(701.4)
Comprehensive income	531.7		1,417.5		990.1
Comprehensive loss (income) attributable to noncontrolling interests	254.7		169.6		(26.1)
Allocation of accumulated other comprehensive income (loss) resulting from purchases of noncontrolling interest and redeemable noncontrolling interests	—		1.1		(209.2)
Comprehensive income attributable to American Tower Corporation stockholders	$	786.4	$	1,588.2	$	754.8

See accompanying notes to consolidated financial statements.

F-7

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(in millions, share counts in thousands)


	Common Stock	Treasury Stock			Additional Paid-in Capital	Accumulated Other Comprehensive Loss		Distributions in Excess of Earnings		Noncontrolling Interests		Total Equity
		Issued Shares	Amount		Shares	Amount
BALANCE, JANUARY 1, 2020		453,541	$	4.5	(10,651)	$	(1,226.4)	$	10,117.7	$	(2,823.6)	$	(1,016.8)	$	435.0	$	5,490.4
Stock-based compensation related activity		1,633	0.1		—	—		133.4		—		—		—		133.5
Issuance of common stock—stock purchase plan		71	0.0		—	—		13.4		—		—		—		13.4


Treasury stock activity		—	—		(264)	(56.0)		—		—		—		—		(56.0)
Changes in fair value of cash flow hedges, net of tax		—	—		—	—		—		(0.2)		—		—		(0.2)
Reclassification of unrealized losses on cash flow hedges to net income, net of tax		—	—		—	—		—		0.3		—		—		0.3
Foreign currency translation adjustment, net of tax		—	—		—	—		—		(726.7)		—		40.5		(686.2)

Distributions to noncontrolling interest		—	—		—	—		—		—		—		(8.9)		(8.9)



Purchases of redeemable noncontrolling interests		—	—		—	—		209.2		(209.2)		—		—		—
Common stock distributions declared		—	—		—	—		—		—		(2,016.8)		—		(2,016.8)


Net income		—	—		—	—		—		—		1,690.6		8.3		1,698.9
BALANCE, DECEMBER 31, 2020		455,245	$	4.6	(10,915)	$	(1,282.4)	$	10,473.7	$	(3,759.4)	$	(1,343.0)	$	474.9	$	4,568.4
Stock-based compensation related activity (1)		1,448	0.0		—	—		167.9		—		—		—		167.9
Issuance of common stock—stock purchase plan		68	0.0		—	—		14.3		—		—		—		14.3
Issuance of common stock		9,900	0.1		—	—		2,361.7		—		—		—		2,361.8


Changes in fair value of cash flow hedges, net of tax		—	—		—	—		—		(0.0)		—		—		(0.0)
Reclassification of unrealized losses on cash flow hedges to net income, net of tax		—	—		—	—		—		0.1		—		—		0.1
Foreign currency translation adjustment, net of tax		—	—		—	—		—		(980.7)		—		(163.4)		(1,144.1)
Adjustment to noncontrolling interest		—	—		—	—		(648.4)		47.4		—		601.0		—
Contributions from noncontrolling interest holders		—	—		—	—		—		—		—		3,078.2		3,078.2
Distributions to noncontrolling interest holders		—	—		—	—		(214.9)		—		—		(3.1)		(218.0)

Redemption of noncontrolling interest		26	0.0		—	—		1.7		—		—		(1.7)		—
Purchases of redeemable noncontrolling interests		—	—		—	—		84.2		(46.3)		—		—		37.9
Purchase of noncontrolling interest		—	—		—	—		—		—		—		10.2		10.2
Common stock distributions declared		—	—		—	—		—		—		(2,367.1)		—		(2,367.1)



Net income (loss)		—	—		—	—		—		—		2,567.7		(7.7)		2,560.0
BALANCE, DECEMBER 31, 2021		466,687	$	4.7	(10,915)	$	(1,282.4)	$	12,240.2	$	(4,738.9)	$	(1,142.4)	$	3,988.4	$	9,069.6
Stock-based compensation related activity		676	0.0		—	—		141.9		—		—		—		141.9
Issuance of common stock—stock purchase plan		75	0.0		—	—		15.3		—		—		—		15.3
Issuance of common stock		9,185	0.1		—	—		2,291.6		—		—		—		2,291.7

Treasury stock activity		—	—		(89)	(18.8)		—		—		—		—		(18.8)


Foreign currency translation adjustment, net of tax		—	—		—	—		—		(979.4)		—		(185.6)		(1,165.0)

Contributions from noncontrolling interest holders		—	—		—	—		—		—		—		3,125.4		3,125.4
Distributions to noncontrolling interest holders		—	—		—	—		—		—		—		(23.0)		(23.0)



Common stock distributions declared		—	—		—	—		—		—		(2,725.3)		—		(2,725.3)

Net income (loss)		—	—		—	—		—		—		1,765.8		(69.1)		1,696.7
BALANCE, DECEMBER 31, 2022		476,623	$	4.8	(11,004)	$	(1,301.2)	$	14,689.0	$	(5,718.3)	$	(2,101.9)	$	6,836.1	$	12,408.5

(1) For the year ended December 31, 2021, Additional-Paid in Capital includes $17.1 million related to the CoreSite Replacement Awards (as described in note 6).

See accompanying notes to consolidated financial statements.

F-8

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOW

(in millions)


	Year Ended December 31,
		2022		2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		$	1,696.7	$	2,567.6	$	1,691.5
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, amortization and accretion		3,355.1		2,332.6		1,882.3
Stock-based compensation expense		169.3		119.5		120.8
Loss on investments, unrealized foreign currency (gain) loss and other non-cash expense		(401.2)		(535.2)		299.6
Impairments, net loss on sale of long-lived assets, non-cash restructuring and merger related expenses		684.3		196.4		239.5
Loss on early retirement of long-term obligations		0.4		38.2		71.8
Amortization of deferred financing costs, debt discounts and premiums and other non-cash interest		47.5		39.9		32.9
Deferred income taxes		(236.7)		(41.2)		(22.5)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable		(78.6)		(191.7)		(175.5)
Prepaid and other assets		(196.1)		(33.2)		84.4
Deferred rent asset		(499.8)		(465.6)		(322.0)
Right-of-use asset and Operating lease liability, net		(9.3)		(32.7)		(10.9)
Accounts payable and accrued expenses		(48.2)		33.2		(69.2)
Accrued interest		6.6		42.9		(1.8)
Unearned revenue		(818.9)		743.8		60.7

Other non-current liabilities		25.1		5.4		(0.2)
Cash provided by operating activities		3,696.2		4,819.9		3,881.4
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for purchase of property and equipment and construction activities		(1,873.6)		(1,376.7)		(1,031.7)
Payments for acquisitions, net of cash acquired		(549.0)		(19,303.9)		(3,799.1)

Proceeds from sales of short-term investments and other non-current assets		19.6		14.3		19.6

Payment for investments in equity securities		—		(25.0)		—
Deposits and other		47.8		(0.9)		26.6
Cash used for investing activities		(2,355.2)		(20,692.2)		(4,784.6)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings, net		28.8		—		—
Borrowings under credit facilities		4,190.0		12,856.9		8,230.4
Proceeds from issuance of senior notes, net		1,293.6		6,761.6		7,925.1
Proceeds from term loans		—		7,347.0		1,940.0


Repayments of notes payable, credit facilities, senior notes, secured debt, short-term borrowings, term loans and finance leases		(9,625.5)		(13,178.1)		(13,875.4)
Contributions from noncontrolling interest holders		3,120.8		3,078.2		—
Distributions to noncontrolling interest holders		(10.9)		(223.2)		(12.3)
Purchases of common stock		(18.8)		—		(56.0)
Proceeds from stock options and employee stock purchase plan		32.4		96.8		98.1
Distributions paid on common stock		(2,630.4)		(2,271.0)		(1,928.2)

Proceeds from the issuance of common stock, net		2,291.7		2,361.8		—


Payment for early retirement of long-term obligations		—		(74.0)		(68.2)
Deferred financing costs and other financing activities		(94.9)		(155.8)		(176.5)
Purchases of redeemable noncontrolling interests		—		(175.7)		(861.7)

Cash (used for) provided by financing activities		(1,423.2)		16,424.5		1,215.3
Net effect of changes in foreign currency exchange rates on cash and cash equivalents, and restricted cash		(120.4)		(70.3)		(28.7)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH		(202.6)		481.9		283.4
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR		2,343.3		1,861.4		1,578.0
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, END OF YEAR		$	2,140.7	$	2,343.3	$	1,861.4

See accompanying notes to consolidated financial statements.

F-9

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business—American Tower Corporation (together with its subsidiaries, “ATC” or the “Company”) is one of the largest global real estate investment trusts and a leading independent owner, operator and developer of multitenant communications real estate. The Company’s primary business is the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a number of other industries. The Company refers to this business as its property operations. Additionally, the Company offers tower-related services in the United States, which the Company refers to as its services operations. These services include site application, zoning and permitting (“AZP”), structural analysis and construction management, which primarily support the Company’s site leasing business, including the addition of new tenants and equipment on its sites. The Company’s customers include its tenants, licensees and other payers.

The Company’s portfolio primarily consists of towers that it owns and towers that it operates pursuant to long-term lease arrangements, as well as distributed antenna system (“DAS”) networks, which provide seamless coverage solutions in certain in-building and outdoor wireless environments. In addition to the communications sites in its portfolio, the Company manages rooftop and tower sites for property owners under various contractual arrangements. The Company also holds other telecommunications infrastructure, fiber and property interests that it leases primarily to communications service providers and third-party tower operators and holds a portfolio of highly interconnected data center facilities and related assets in the United States that the Company leases primarily to enterprises, network operators, cloud providers and supporting service providers.

American Tower Corporation is a holding company that conducts its operations through its directly and indirectly owned subsidiaries and joint ventures. ATC’s principal domestic operating subsidiaries are American Towers LLC and SpectraSite Communications, LLC. ATC conducts its international operations primarily through its subsidiary, American Tower International, Inc., which in turn conducts operations through its various international holding and operating subsidiaries and joint ventures.

The Company operates as a real estate investment trust for U.S. federal income tax purposes (“REIT”). Accordingly, the Company generally is not required to pay U.S. federal income taxes on income generated by its REIT operations, including the income derived from leasing space on its towers and in its data centers, as it receives a dividends paid deduction for distributions to stockholders that generally offsets its REIT income and gains. However, the Company remains obligated to pay U.S. federal income taxes on earnings from its domestic taxable REIT subsidiaries (“TRSs”). In addition, the Company’s international assets and operations, regardless of their classification for U.S. tax purposes, continue to be subject to taxation in the jurisdictions where those assets are held or those operations are conducted.

The use of TRSs enables the Company to continue to engage in certain businesses and jurisdictions while complying with REIT qualification requirements. The Company may, from time to time, change the election of previously designated TRSs to be included as part of the REIT. As of December 31, 2022, the Company’s REIT-qualified businesses included its U.S. tower leasing business, a majority of its U.S. indoor DAS networks business, its Services and Data Centers segments, as well as most of its operations in Canada, Costa Rica, France, Germany, Ghana, Kenya, Mexico, Nigeria, South Africa and Uganda.

Principles of Consolidation and Basis of Presentation—The accompanying 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 December 31, 2022, the Company holds (i) a 52% controlling interest in subsidiaries whose holdings consist of the Company’s operations in France, Germany, Poland and Spain (such subsidiaries collectively, “ATC Europe”) (Allianz and CDPQ (each as defined in note 15) hold the noncontrolling interests), (ii) a 51% controlling interest in a joint venture whose holdings consist of the Company’s operations in Bangladesh (Confidence Tower Holdings Ltd. (“Confidence Group”) holds the noncontrolling interest) and (iii) a common equity interest of approximately 72% in the Company’s U.S. data center business (Stonepeak (as defined and further discussed in note 15) holds approximately 28% of the outstanding common equity and 100% of the outstanding mandatorily convertible preferred equity). As of December 31, 2022, ATC Europe holds an 87% and an 83% controlling interest in subsidiaries that consist of the Company’s operations in Germany and Spain, respectively (PGGM holds the noncontrolling interests). See note 15 for a discussion of changes to the Company’s noncontrolling interests during the years ended December 31, 2022 and 2021.

F-10

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Reportable Segments—The Company reports its results in seven segments – U.S. & Canada property (which includes all assets in the United States and Canada, other than the Company’s data center facilities and related assets), Asia-Pacific property, Africa property, Europe property, Latin America property, Data Centers and Services, which are discussed further in note 20.

Significant Accounting Policies and Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates, and such differences could be material to the accompanying consolidated financial statements. The significant estimates in the accompanying consolidated financial statements include impairment of long-lived assets (including goodwill), revenue recognition, rent expense and lease accounting, income taxes and accounting for business combinations and acquisitions of assets. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued as additional evidence for certain estimates or to identify matters that require additional disclosure.

Accounts Receivable and Deferred Rent Asset—The Company derives the largest portion of its revenues and corresponding accounts receivable and the related deferred rent asset from a relatively small number of customers in the telecommunications industry, and 46% of its current-year revenues are derived from three customers.

The Company’s deferred rent asset is associated with non-cancellable tenant leases that contain fixed escalation clauses over the terms of the applicable lease in which revenue is recognized on a straight-line basis over the lease term.

The Company mitigates its concentrations of credit risk with respect to notes and trade receivables and the related deferred rent assets by actively monitoring the creditworthiness of its borrowers and customers. In recognizing customer revenue, the Company assesses the collectibility of both the amounts billed and the portion recognized in advance of billing on a straight-line basis. This assessment takes customer credit risk and business and industry conditions into consideration to ultimately determine the collectibility of the amounts billed. To the extent the amounts, based on management’s estimates, may not be collectible, revenue recognition is deferred until such point as collectibility is determined to be reasonably assured. Any amounts that were previously recognized as revenue and are subsequently determined to present a risk of collection are reserved as bad debt expense included in Selling, general, administrative and development expense in the accompanying consolidated statements of operations.

Accounts receivable is reported net of allowances for doubtful accounts related to estimated losses resulting from a customer’s inability to make required payments and allowances for amounts invoiced whose collectibility is not reasonably assured. These allowances are generally estimated based on payment patterns, days past due and collection history, and incorporate changes in economic conditions that may not be reflected in historical trends, such as customers in bankruptcy, liquidation or reorganization. Receivables are written-off against the allowances or reserves when they are determined to be uncollectible. Such determination includes analysis and consideration of the particular conditions of the account. Changes in the allowances were as follows:


	Year Ended December 31,
	2022		2021		2020
Balance as of January 1,	$	355.9	$	247.6	$	163.3
Current year increases	168.2		130.9		105.6
Write-offs, recoveries and other	(85.4)		(22.6)		(21.3)
Balance as of December 31,	$	438.7	$	355.9	$	247.6

Functional Currency—The functional currency of each of the Company’s foreign operating subsidiaries is normally the respective local currency, except for Costa Rica and Argentina, where the functional currency is the U.S. Dollar. All foreign currency assets and liabilities held by the subsidiaries are translated into U.S. Dollars at the exchange rate in effect at the end of the applicable fiscal reporting period and all foreign currency revenues and expenses are translated at the average monthly exchange rates. Translation adjustments are reflected in equity as a component of Accumulated other comprehensive loss (“AOCL”) in the consolidated balance sheets and included as a component of Comprehensive income in the consolidated statements of comprehensive income.

Gains and losses on foreign currency transactions are reflected in Other expense in the consolidated statements of operations. However, the effect from fluctuations in foreign currency exchange rates on intercompany debt for which repayment is not

F-11

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

anticipated in the foreseeable future is reflected in AOCL in the consolidated balance sheets and included as a component of Comprehensive income.

The Company recorded the following net foreign currency (gains) losses:


	Year Ended December 31,
	2022		2021		2020
Foreign currency losses recorded in AOCL	$	336.7	$	466.5	$	391.0
Foreign currency (gains) losses recorded in Other expense	(449.4)		(557.9)		216.4
Total foreign currency (gains) losses	$	(112.7)	$	(91.4)	$	607.4

Cash and Cash Equivalents—Cash and cash equivalents include cash on hand, demand deposits and short-term investments with original maturities of three months or less. The Company maintains its deposits at high-quality financial institutions and monitors the credit ratings of those institutions.

*Restricted Cash—*Restricted cash includes cash pledged as collateral to secure obligations and all cash whose use is otherwise limited by contractual provisions.

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 statements of cash flows is as follows:


	Year Ended December 31,
	2022		2021		2020
Cash and cash equivalents	$	2,028.4	$	1,949.9	$	1,746.3
Restricted cash	112.3		393.4		115.1
Total cash, cash equivalents and restricted cash	$	2,140.7	$	2,343.3	$	1,861.4

Restricted cash as of December 31, 2021 included advance payments from a customer.

Property and Equipment—Property and equipment is recorded at cost or, in the case of acquired properties, at estimated fair value on the date acquired. Cost for self-constructed sites includes direct materials and labor and certain indirect costs associated with construction of the site, such as transportation costs, employee benefits and payroll taxes. The Company begins the capitalization of costs during the pre-construction period, which is the period during which costs are incurred to evaluate the site, and continues to capitalize costs until the site is substantially completed and ready for occupancy by a customer. Labor and related costs capitalized for the years ended December 31, 2022, 2021 and 2020 were $65.2 million, $59.4 million and $51.1 million, respectively.

Expenditures for repairs and maintenance are expensed as incurred. Augmentation and improvements that extend an asset’s useful life or enhance capacity are capitalized.

Depreciation expense is recorded using the straight-line method over the assets’ estimated useful lives. Towers and assets on leased land are depreciated over the estimated useful life of the asset taking into consideration the term of the corresponding ground lease and residual value.

Towers or assets acquired through finance leases are recorded net at the present value of future minimum lease payments or the fair value of the leased asset at the inception of the lease. Property and equipment and assets held under finance leases are amortized over the shorter of the applicable lease term or the estimated useful life of the respective assets for periods generally not exceeding twenty years.

The Company reviews its asset portfolio for indicators of impairment on an individual site basis. Impairments primarily result from a site not having current tenant leases or from having expenses in excess of revenues. The Company reviews other long-lived assets for impairment whenever events, changes in circumstances or other evidence indicate that the carrying amount of the Company’s assets may not be recoverable. The Company records impairment charges, which are discussed in note 16, in Other operating expenses in the consolidated statements of operations in the period in which the Company identifies such impairment.

Goodwill and Other Intangible Assets—The Company reviews goodwill for impairment at least annually (as of December 31) or whenever events or circumstances indicate the carrying value of an asset may not be recoverable.

F-12

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Goodwill is recorded in the applicable segment and assessed for impairment at the reporting unit level. The Company employs a discounted cash flow analysis when testing goodwill for impairment. The key assumptions utilized in the discounted cash flow analysis include current operating performance, terminal revenue growth rate, management’s expectations of future operating results and cash requirements, the current weighted average cost of capital and an expected tax rate. The Company compares the fair value of the reporting unit, as calculated under an income approach using future discounted cash flows, to the carrying amount of the applicable reporting unit. If the carrying amount exceeds the fair value, an impairment loss would be recognized for the amount of the excess. The loss recognized is limited to the total amount of goodwill allocated to that reporting unit.

During the years ended December 31, 2022, 2021 and 2020, no potential goodwill impairment was identified, as the fair value of each of the reporting units was in excess of its carrying amount.

Intangible assets that are separable from goodwill and are deemed to have a definite life are amortized over their useful lives, generally ranging from two to twenty years and are evaluated separately for impairment at least annually or whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable.

The Company reviews its network location intangible assets for indicators of impairment on an individual tower basis. Impairments primarily result from a site not having current tenant leases or from having expenses in excess of revenues. The Company monitors its tenant-related intangible assets on a tenant by tenant basis for indicators of impairment, such as high levels of turnover or attrition, the customer’s ability to meet its contractual obligations, non-renewal of a significant number of contracts or the cancellation or termination of a relationship. The Company assesses recoverability by determining whether the carrying amount of the related assets will be recovered primarily through projected undiscounted future cash flows. If the Company determines that the carrying amount of an asset may not be recoverable, the Company measures any impairment loss based on the projected future discounted cash flows to be provided from the asset or available market information relative to the asset’s fair value, as compared to the asset’s carrying amount. The Company records impairment charges, which are discussed in note 16, in Other operating expenses in the consolidated statements of operations in the period in which the Company identifies such impairment.

Derivative Financial Instruments—Derivatives are recorded on the consolidated balance sheet at fair value. If a derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in AOCL, as well as a component of comprehensive income, and are recognized in the results of operations when the hedged item affects earnings. Changes in fair value of the ineffective portions of cash flow hedges are recognized in the results of operations. For derivative instruments that are designated and qualify as fair value hedges, changes in value of the derivatives are recorded in Other expense in the consolidated statements of operations in the current period, along with the offsetting gain or loss on the hedged item attributable to the hedged risk. For derivative instruments not designated as hedging instruments, changes in fair value are recognized in the results of operations in the period that the change occurs.

The primary risks managed through the use of derivative instruments is interest rate risk, exposure to changes in the fair value of debt attributable to interest rate risk and currency risk. From time to time, the Company enters into interest rate swap agreements or foreign currency contracts to manage exposure to these risks. Under these agreements, the Company is exposed to counterparty credit risk to the extent that a counterparty fails to meet the terms of a contract. The Company’s exposure is limited to the current value of the contract at the time the counterparty fails to perform. The Company assesses, both at the inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows or fair values of hedged items. The Company does not hold derivatives for trading purposes.

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.

Asset Retirement Obligations—When required, the Company recognizes the fair value of obligations to remove its assets and remediate the leased space upon which certain of its assets are located. Generally, the associated retirement costs are capitalized as part of the carrying amount of the related assets and depreciated over their estimated useful lives and the liability is accreted through the obligation’s estimated settlement date. Fair value estimates of asset retirement obligations generally involve discounting of estimated future cash flows associated with remediation costs. Periodic accretion of such liabilities due to the passage of time is included in Depreciation, amortization and accretion expense in the consolidated statements of operations. Adjustments are also made to the asset retirement obligation liability to reflect changes in the estimates of timing and amount of expected cash flows, with an offsetting adjustment made to the related long-lived tangible asset. The significant assumptions used in estimating the Company’s aggregate asset retirement obligation are: timing of asset removals; cost of asset removals;

F-13

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

timing and number of site lease renewals; expected inflation rates; and credit-adjusted, risk-free interest rates that approximate the Company’s incremental borrowing rate.

Income Taxes—As a REIT, the Company generally is not subject to U.S. federal income taxes on income generated by its REIT operations as it receives a dividends paid deduction for distributions to stockholders that generally offsets its REIT income and gains. However, the Company remains obligated to pay U.S. federal income taxes on certain earnings and continues to be subject to taxation in its foreign jurisdictions. Accordingly, the consolidated financial statements reflect provisions for federal, state, local and foreign income taxes. The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, as well as operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities as a result of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company periodically reviews its deferred tax assets, and provides valuation allowances if, based on the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. Valuation allowances would be reversed as a reduction to the provision for income taxes if related deferred tax assets are deemed realizable based on changes in facts and circumstances relevant to the assets’ recoverability.

The Company estimates the liabilities from uncertain tax positions, which are recorded in Other non-current liabilities in the consolidated balance sheet, unless expected to be paid within one year. The Company reports penalties and tax-related interest expense as a component of the income tax provision and interest income from tax refunds as a component of Interest income in the consolidated statements of operations.

Other Comprehensive Income (Loss)—Other comprehensive income (loss) refers to items excluded from net income that are recorded as an adjustment to equity, net of tax. The Company’s other comprehensive income (loss) primarily consisted of changes in fair value of effective derivative cash flow hedges, foreign currency translation adjustments, reclassification of unrealized losses on effective derivative cash flow hedges and other items. The AOCL balance included accumulated foreign currency translation losses of $5.7 billion, $4.7 billion and $3.8 billion as of December 31, 2022, 2021 and 2020, respectively.

Distributions—As a REIT, the Company must annually distribute to its stockholders an amount equal to at least 90% of its REIT taxable income (determined before the deduction for distributed earnings and excluding any net capital gain). Generally, the Company has distributed, and expects to continue to distribute, all or substantially all of its REIT taxable income after taking into consideration its utilization of net operating losses (“NOLs”).

The amount, timing and frequency of future distributions will be at the sole discretion of the Board of Directors and will depend upon various factors, a number of which may be beyond the Company’s control, including the Company’s financial condition and operating cash flows, the amount required to maintain its qualification for taxation as a REIT and reduce any income and excise taxes that the Company otherwise would be required to pay, limitations on distributions in the Company’s existing and future debt and preferred equity instruments, the Company’s ability to utilize NOLs to offset the Company’s distribution requirements, limitations on its ability to fund distributions using cash generated through its TRSs and other factors that the Board of Directors may deem relevant.

Acquisitions—For acquisitions that meet the definition of a business combination, the Company applies the acquisition method of accounting where assets acquired and liabilities assumed are recorded at fair value at the date of each acquisition, and the results of operations are included with those of the Company from the dates of the respective acquisitions. Any excess of the purchase price paid by the Company over the amounts recognized for assets acquired and liabilities assumed is recorded as goodwill. The Company continues to evaluate acquisitions for a period not to exceed one year after the applicable acquisition date of each transaction to determine whether any additional adjustments are needed to the allocation of the purchase price paid for the assets acquired and liabilities assumed. All other acquisitions are accounted for as asset acquisitions and the purchase price is allocated to the net assets acquired with no recognition of goodwill. The purchase price is not subsequently adjusted.

The fair value of the assets acquired and liabilities assumed is typically determined by using either estimates of replacement costs or discounted cash flow valuation methods. When determining the fair value of tangible assets acquired, the Company must estimate the cost to replace the asset with a new asset taking into consideration such factors as age, condition and the economic useful life and productive capacity of the asset. When determining the fair value of intangible assets acquired and liabilities assumed, the Company must estimate the timing and amount of future cash flows, including rate and terms of renewal and attrition, and apply the applicable discount rate.

F-14

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Revenue—The Company’s revenue is derived from leasing the right to use its communications sites, the land on which the sites are located and the space in its data center facilities (the “lease component”) and from the reimbursement of costs incurred by the Company in operating the communications sites and data center facilities and supporting its customers’ 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 DAS networks and fiber and other related assets results from agreements with customers that are generally not accounted for as leases.

The Company’s revenue from leasing arrangements, including fixed escalation clauses present in non-cancellable lease arrangements, is reported on a straight-line basis over the term of the respective leases when collectibility is probable. Escalation clauses tied to a consumer price index (“CPI”), or other inflation-based indices, and other incentives present in lease agreements with the Company’s tenants are excluded from the straight-line calculation. Total property straight-line revenues for the years ended December 31, 2022, 2021 and 2020 were $499.8 million, $465.6 million and $322.0 million, respectively.

*Non-lease property revenue—*Non-lease property revenue consists primarily of revenue generated from DAS networks, fiber and other property related revenue. DAS networks and fiber arrangements generally require that the Company provide the tenant the right to use available capacity on the applicable communications infrastructure. Performance obligations are satisfied over time for the duration of the arrangements. Non-lease property revenue also includes revenue generated from interconnection offerings in the Company’s data center facilities. Interconnection offerings are generally contracted on a month-to-month basis and are cancellable by the Company or the data center customer at any time. 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.

*Services revenue—*The Company offers tower-related services in the United States. These services include AZP, structural analysis and construction management. 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.

Some of the Company’s contracts with customers contain multiple performance obligations. For these arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price, which is typically based on the price charged to customers.

Since most of the Company’s contracts are leases, costs to enter into lease arrangements are capitalized under the applicable lease accounting guidance. Costs incurred to obtain non-lease contracts that are capitalized primarily relate to DAS networks and are not material to the consolidated financial statements. The Company has excluded sales tax, value added tax and similar taxes from non-lease revenue.

Revenue is disaggregated by geography in a manner consistent with the Company’s business segments, which are discussed further in note 20. A summary of revenue disaggregated by source and geography is as follows:


Year Ended December 31, 2022	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	295.4	$	14.3	$	27.4	$	16.3	$	154.5	$	106.0	$	613.9
Services revenue	241.1		—		—		—		—		—		241.1
Total non-lease revenue	$	536.5	$	14.3	$	27.4	$	16.3	$	154.5	$	106.0	$	855.0
Property lease revenue	4,710.9		1,062.7		1,165.1		719.4		1,537.4		660.6		9,856.1
Total revenue	$	5,247.4	$	1,077.0	$	1,192.5	$	735.7	$	1,691.9	$	766.6	$	10,711.1

F-15

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)


Year Ended December 31, 2021	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	291.9	$	8.8	$	24.4	$	7.6	$	135.9	$	1.3	$	469.9
Services revenue	247.3		—		—		—		—		—		247.3
Total non-lease revenue	$	539.2	$	8.8	$	24.4	$	7.6	$	135.9	$	1.3	$	717.2
Property lease revenue	4,628.3		1,190.3		981.1		488.6		1,329.5		21.9		8,639.7
Total revenue	$	5,167.5	$	1,199.1	$	1,005.5	$	496.2	$	1,465.4	$	23.2	$	9,356.9


Year Ended December 31, 2020	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Total
Non-lease property revenue	$	258.4	$	9.3	$	13.8	$	7.9	$	118.4	$	407.8
Services revenue	87.9		—		—		—		—		87.9
Total non-lease revenue	$	346.3	$	9.3	$	13.8	$	7.9	$	118.4	$	495.7
Property lease revenue	4,258.6		1,130.1		876.4		141.7		1,139.0		7,545.8
Total revenue	$	4,604.9	$	1,139.4	$	890.2	$	149.6	$	1,257.4	$	8,041.5

Information about non-lease receivables, contract assets and contract liabilities from contracts with customers is as follows:


	December 31, 2022		December 31, 2021
Accounts receivable	$	96.9	$	121.9
Prepaids and other current assets	39.9		42.6
Notes receivable and other non-current assets	27.1		25.9
Unearned revenue (1)	106.3		128.2
Other non-current liabilities (1)	321.6		372.0

(1) Includes capital contributions related to DAS networks.

The Company records unearned revenue when payments are received from customers in advance of the completion of the Company’s performance obligations. Long-term unearned revenue is included in Other non-current liabilities.

During the year ended December 31, 2022, the Company recognized $135.3 million of revenue that was previously included in the contract liabilities balances, primarily arising from balances as of December 31, 2021.

The Company records unbilled receivables, which are included in Prepaids and other current assets, when it has completed a performance obligation prior to its ability to bill under the customer arrangement. Other contract assets are included in Notes receivable and other non-current assets. The Company recorded an immaterial change in unbilled receivables attributable to non-lease property revenue recognized during each of the years ended December 31, 2022 and 2021. The change in contract assets attributable to revenue recognized during the years ended December 31, 2022 and 2021 was $(0.3) million and $2.2 million, respectively.

The Company does not disclose the value of unsatisfied performance obligations for agreements (i) with an original expected length of one year or less or (ii) for which it recognizes revenue at the amount to which it has the right to invoice for services performed.

Lease Accounting and Rent Expense—The Company accounts for leases using a right-of-use model, which recognizes that, at the date of commencement, a lessee has a financial obligation to make lease payments to the lessor for the right to use the underlying asset during the lease term. The lessee recognizes a corresponding right-of-use asset related to this right.

The Company recognizes a right-of-use lease asset and lease liability for operating and finance leases. The right-of-use asset is measured as the sum of the lease liability, prepaid or accrued lease payments, any initial direct costs incurred and any other applicable amounts. The Company reviews its right-of-use assets for impairment whenever events, changes in circumstances or other evidence indicate that the carrying amount of the Company’s assets may not be recoverable. The Company reviews its right-of-use assets for indicators of impairment at the lowest level of identifiable cash flows, as part of its asset portfolio. Impairments primarily result from a site not having current tenant leases or from having expenses in excess of revenues. The Company records impairment charges, which are discussed in note 16, in Other operating expenses in the consolidated statements of operations in the period in which the Company identifies such impairment.

F-16

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

The calculation of the lease liability requires the Company to make certain assumptions for each lease, including lease term and discount rate implicit in each lease, which could significantly impact the gross lease obligation, the duration and the present value of the lease liability. When calculating the lease term, the Company considers the renewal, cancellation and termination rights available to the Company and the lessor. The Company determines the discount rate by calculating the incremental borrowing rate on a collateralized basis at the commencement of a lease or upon a change in the lease term.

Many of the leases underlying the Company’s sites have fixed rent escalations, which provide for periodic increases in the amount of ground rent payable by the Company over time. In addition, certain of the Company’s tenant leases require the Company to exercise available renewal options pursuant to the underlying ground lease if the tenant exercises its renewal option. The Company’s calculation of the lease liability includes the term of the underlying ground lease plus all periods, if any, for which failure to renew the lease imposes an economic penalty to the Company such that renewal appears to be reasonably assured.

The straight-line component of ground rent expense for the years ended December 31, 2022, 2021 and 2020 was $39.6 million, $52.7 million and $51.6 million, respectively.

Selling, General, Administrative and Development Expense—Selling, general and administrative expense consists of overhead expenses related to the Company’s property and services operations and corporate overhead costs not specifically allocable to any of the Company’s individual business operations. Development expense consists of costs related to the Company’s acquisition efforts, costs associated with new business initiatives and project cancellation costs.

Stock-Based Compensation—Stock-based compensation expense is measured at the accounting measurement date based on the fair value of the award and is generally recognized as an expense over the service period, which typically represents the vesting period. The Company provides for accelerated vesting and extended exercise periods of stock options and restricted stock units upon an employee’s death or permanent disability, or upon an employee’s qualified retirement, provided certain eligibility criteria are met. Accordingly, the Company recognizes compensation expense for stock options and time-based restricted stock units (“RSUs”) over the shorter of (i) the four-year vesting period or (ii) the period from the date of grant to the date the employee becomes eligible for such benefits due to death, disability or qualified retirement, which may occur upon grant. The expense recognized includes the impact of forfeitures as they occur.

The Company grants performance-based restricted stock units (“PSUs”) to its executive officers. Threshold, target and maximum parameters are established for a three-year performance period at the time of grant. The metrics are used to calculate the number of shares that will be issuable when the awards vest, which may range from zero to 200% of the target amounts. The Company recognizes compensation expense for PSUs over the three-year vesting period, subject to adjustment based on the date the employee becomes eligible for retirement benefits as well as performance relative to grant parameters.

The fair value of stock options is determined using the Black-Scholes option-pricing model and the fair value of RSUs and PSUs is based on the fair value of the Company’s common stock on the date of grant. The Company recognizes all stock-based compensation expense in Selling, general, administrative and development expense.

In connection with the vesting of restricted stock units, the Company withholds from issuance a number of shares of common stock to satisfy certain employee tax withholding obligations arising from such vesting. The shares withheld are considered constructively retired. The Company recognizes the fair value of the shares withheld in Additional paid-in capital on the consolidated balance sheets. As of December 31, 2022, the Company has withheld from issuance an aggregate of 2.8 million shares, including 0.2 million shares related to the vesting of restricted stock units during the year ended December 31, 2022.

Litigation Costs—The Company periodically becomes involved in various claims and lawsuits that are incidental to its business. The Company regularly monitors the status of pending legal actions to evaluate both the magnitude and likelihood of any potential loss. The Company accrues for these potential losses when it is probable that a liability has been incurred and the amount of loss, or possible range of loss, can be reasonably estimated. Should the ultimate losses on contingencies or litigation vary from estimates, adjustments to those liabilities may be required. The Company also incurs legal costs in connection with these matters and records estimates of these expenses, which are reflected in Selling, general, administrative and development expense in the accompanying consolidated statements of operations.

Earnings Per Common Share—Basic and Diluted—Basic net income per common share represents net income attributable to American Tower Corporation common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted net income per common share represents net income attributable to American Tower Corporation common stockholders divided by the weighted average number of common shares outstanding during the period and any dilutive common share equivalents, including (A) shares issuable upon the vesting of RSUs and exercise of stock options and

F-17

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

(B) shares expected to be earned upon the achievement of the parameters established for PSUs, each to the extent not anti-dilutive. The Company uses the treasury stock method to calculate the effect of its outstanding RSUs, PSUs and stock options.

Retirement Plan—The Company has a 401(k) plan covering nearly all eligible employees who meet certain age and employment requirements. For the years ended December 31, 2022, 2021 and 2020, the Company matched 100% of the first 5% of a participant's contributions. For the years ended December 31, 2022, 2021 and 2020, the Company contributed $16.9 million, $14.9 million and $13.2 million to the plan, respectively.

2. PREPAID AND OTHER CURRENT ASSETS

Prepaid and other current assets consisted of the following:


	As of
	December 31, 2022		December 31, 2021
Prepaid assets	$	100.7	$	94.5
Prepaid income tax	139.3		128.6
Unbilled receivables	283.8		269.6
Value added tax and other consumption tax receivables	83.6		83.9
Other miscellaneous current assets	115.9		80.6
Prepaid and other current assets	$	723.3	$	657.2

3. PROPERTY AND EQUIPMENT

Property and equipment (including assets held under finance leases) consisted of the following:


	Estimated Useful Lives (years) (1)	As of
	December 31, 2022	December 31, 2021
Towers	Up to 20	$	16,288.4	$	15,899.3
Equipment (2)	3 - 20	4,409.6		4,102.9
Buildings and improvements	Up to 40	3,593.6		3,523.0
Land and improvements (3)	Up to 20	4,153.7		3,965.2
Construction-in-progress		1,431.9		913.2
Total		29,877.2		28,403.6
Less accumulated depreciation		(9,878.9)		(8,619.6)
Property and equipment, net		$	19,998.3	$	19,784.0

(1) Assets on leased land are depreciated over the estimated useful life of the asset taking into consideration the corresponding ground lease term and residual value.

(2) Includes fiber, DAS and data center related assets.

(3) Estimated useful lives apply to improvements only.

Total depreciation expense for the years ended December 31, 2022, 2021 and 2020 was $1,552.6 million, $1,036.2 million and $924.3 million, respectively. Depreciation expense includes amounts related to finance lease assets for the years ended December 31, 2022, 2021 and 2020 of $145.4 million, $146.8 million and $153.0 million, respectively.

F-18

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Information about finance lease-related balances is as follows:


		As of December 31,
Finance leases:	Classification	2022		2021
Property and equipment	Towers	$	2,742.2	$	2,719.8
Accumulated depreciation		(1,464.5)		(1,355.3)
Property and equipment, net		$	1,277.7	$	1,364.5

Property and equipment	Buildings and improvements	$	189.6	$	179.0
Accumulated depreciation		(94.0)		(85.2)
Property and equipment, net		$	95.6	$	93.8

Property and equipment	Land	$	129.3	$	129.3

Property and equipment	Equipment	$	80.1	$	68.6
Accumulated depreciation		(25.6)		(25.0)
Property and equipment, net		$	54.5	$	43.6

4. 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.

Lessor—The Company is a lessor in most of its revenue arrangements, as property revenue is derived from tenant leases of specifically-identified, physically distinct space on or in the Company’s communications real estate assets. The Company’s lease arrangements with its tenants for its communications sites vary depending upon the region and the industry of the tenant and generally have initial non-cancellable terms of five to ten years with multiple renewal terms. The leases also contain provisions that periodically increase the rent due, typically annually, based on a fixed escalation percentage or an inflationary index, or a combination of both. The Company structures its leases to include financial penalties if a tenant terminates the lease, which serve to disincentivize tenants from terminating the lease prior to the expiration of the lease term.

The Company’s leasing arrangements outside of the United States may require that the Company provide power to the communications site through an electrical grid connection, diesel fuel generators or other sources and permit the Company to pass through the costs of, or otherwise charge for, these services. Many arrangements require that the communications site has power for a specified percentage of time. In most cases, if delivery of power falls below the specified service level, a corresponding reduction in revenue is recorded. The Company has determined that this performance obligation is satisfied over time for the duration of the lease. In addition, the Company provides power to its data center customers, which is passed through, or otherwise charged, to customers pursuant to the terms of the customer power arrangement. Customer power arrangements are coterminous with such customer’s underlying lease and have the same pattern of transfer over the lease term. This performance obligation is generally satisfied over time for the duration of the lease. Fixed power revenue is recognized each month over the term of the lease. For variable power arrangements, the Company recognizes revenue each month as the uncertainty related to the consideration is resolved.

The Company typically has more than one tenant on a site and, by performing ordinary course repair and maintenance work, can often lease a site, either through renewing existing agreements or leasing to new tenants, for periods beyond the existing tenant lease term. Accordingly, the Company has minimal risk with respect to the residual value of its leased assets. Communications infrastructure assets are depreciated over their estimated useful lives, which generally do not exceed twenty years.

As of December 31, 2022, the Company does not have any material related party leases as a lessor. To the extent there are any intercompany leases, these are eliminated in consolidation. The Company generally does not enter into sales-type leases or direct financing leases. The Company’s leases generally do not include any incentives for the lessee, however, if incentives are present, they are evaluated to determine proper treatment and, to the extent present, are recorded in Other current assets and

F-19

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Other non-current assets in the consolidated balance sheets and amortized over the corresponding lease term as a component of revenue. In addition, the Company’s leases do not include any lessee purchase options.

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 December 31, 2022, were as follows:


Fiscal Year	Amount (1) (2)
2023	$	7,658.4
2024	7,331.1
2025	6,904.3
2026	6,428.9
2027	6,284.1
Thereafter	27,746.0
Total	$	62,352.8

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

(2) Balances represent contractual amounts owned with no adjustments made for expected collectibility.

Lessee—The Company enters into arrangements as a lessee primarily for ground space underneath its communications sites. These arrangements are typically long-term lease agreements with initial non-cancellable terms of approximately five to ten years with one or more automatic or exercisable renewal periods and specified increases in lease payments upon exercise of the renewal options. The Company typically exercises its ground lease renewal options in order to provide ongoing tenant space on or in its communications sites through the end of the tenant lease term. Escalation clauses present in operating leases, excluding those tied to CPI or other inflation-based indices, are recognized on a straight-line basis over the estimated lease term of the applicable lease as a component of rent expense. Additionally, the escalations tied to CPI or another inflation-based index are considered variable lease payments. In certain circumstances, the Company enters into revenue sharing arrangements with the ground space owner, which results in variability in lease payments. In most markets outside of the United States, in the event there are no tenants on the communications site, the Company generally has unilateral termination rights and in certain situations, the lease is structured to allow for termination by the Company with minimal or no penalties. Ground lease arrangements usually include annual escalations and do not contain any residual value guarantees or restrictions on dividends, other financial obligations or other similar terms. The Company has entered into certain transactions whereby at the end of a lease, sublease or similar arrangement, the Company has the option to purchase the corresponding communications sites. These transactions are further described in note 18.

The Company’s lease liability is the present value of the remaining minimum rental payments to be made over the remaining lease term, including renewal options reasonably certain to be exercised. The Company also considers termination options and factors those into the determination of lease payments when appropriate. To determine the lease term, the Company considers all renewal periods that are reasonably certain to be exercised, taking into consideration all economic factors, including the communications site’s estimated economic life (generally twenty years) and the respective lease terms of the Company’s tenants under the existing lease arrangements on such site.

The Company assesses its right-of-use asset and other lease-related assets for impairment, as described in note 1. During the years ended December 31, 2022, 2021 and 2020, the Company recorded $8.1 million, $3.3 million and $76.1 million, respectively, of impairment expense related to these assets.

As of December 31, 2022, the Company does not have any material related party leases as a lessee. The Company does not have any sale-leaseback arrangements as lessee and typically does not enter into leveraged leases.

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 December 31, 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.

F-20

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Information about other lease-related balances is as follows:


	As of
	December 31, 2022		December 31, 2021
Operating leases:
Right-of-use asset	$	8,918.9	$	9,225.1

Current portion of lease liability	$	788.9	$	712.6
Lease liability	7,591.9		8,041.8
Total operating lease liability	$	8,380.8	$	8,754.4

Finance leases:
Current portion of lease liability	$	4.7	$	6.7
Lease liability	23.1		24.9
Total finance lease liability	$	27.8	$	31.6

As most of the Company’s leases do not specifically state an implicit rate, the Company uses a market-specific incremental borrowing rate consistent with the lease term as of the lease commencement date or upon a remeasurement event when calculating the present value of the remaining lease payments. The incremental borrowing rate reflects the cost to borrow on a securitized basis in each market. The remaining lease term does not reflect all renewal options available to the Company, only those renewal options that the Company has assessed as reasonably certain of being exercised taking into consideration the economic and other factors noted above.

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


	As of
	December 31, 2022		December 31, 2021
Operating leases:
Weighted-average remaining lease term (years)	12.2		13.0
Weighted-average incremental borrowing rate	5.3	%	5.1	%

Finance leases:
Weighted-average remaining lease term (years)	13.4		13.4
Weighted-average incremental borrowing rate	6.9	%	6.3	%

The following table sets forth the components of lease cost for the years ended December 31,:


	2022		2021		2020
Operating lease cost	$	1,222.8	$	1,115.1	$	977.2
Variable lease costs not included in lease liability (1)	388.2		339.6		280.0

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

The interest expense on finance lease liabilities was $1.1 million, $1.2 million and $1.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. Assets held under finance leases are recorded in property and equipment and are depreciated over the lesser of the remaining lease term or the remaining useful life.

F-21

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Supplemental cash flow information is as follows for the years ended December 31,:


	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(1,228.1)	$	(1,144.8)	$	(988.3)
Operating cash flows from finance leases	$	(1.1)	$	(1.2)	$	(1.3)
Financing cash flows from finance leases	$	(6.7)	$	(7.9)	$	(9.2)

Non-cash items:
New operating leases (1)	$	402.4	$	2,063.8	$	346.0
Operating lease modifications and reassessments	$	80.5	$	96.0	$	843.1

(1) Amount includes new operating leases and leases acquired in connection with acquisitions. For the year ended December 31, 2021, includes $1.4 billion related to the Telxius Acquisition (as defined in note 6).

As of December 31, 2022, the Company does not have material operating or financing leases that have not yet commenced.

Maturities of operating and finance lease liabilities as of December 31, 2022 were as follows:


Fiscal Year	Operating Lease (1)		Finance Lease (1)
2023	$	1,165.6	$	6.3
2024	1,064.6		6.6
2025	1,007.4		3.4
2026	947.9		2.3
2027	886.6		1.9
Thereafter	6,319.8		26.1
Total lease payments	11,391.9		46.6
Less amounts representing interest	(3,011.1)		(18.8)
Total lease liability	8,380.8		27.8
Less current portion of lease liability	788.9		4.7
Non-current lease liability	$	7,591.9	$	23.1

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

F-22

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

5. GOODWILL AND OTHER INTANGIBLE ASSETS

The changes in the carrying value of goodwill for each of the Company’s business segments were as follows:


	Property												Services		Total
	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers
Balance as of December 31, 2020	$	4,750.8	$	1,016.9	$	625.6	$	279.1	$	608.3	$	—	$	2.0	$	7,282.7
Additions and adjustments (1)	(103.1)		(9.7)		—		3,186.0		331.0		2,978.4		—		6,382.6
Effect of foreign currency translation	0.7		(17.1)		(13.4)		(234.7)		(50.7)		—		—		(315.2)
Balance as of December 31, 2021	$	4,648.4	$	990.1	$	612.2	$	3,230.4	$	888.6	$	2,978.4	$	2.0	$	13,350.1
Adjustments (2)	—		—		—		3.6		(16.9)		(58.4)		—		(71.7)
Other (3)	(7.4)		—		—		—		—		—		—		(7.4)

Effect of foreign currency translation	(3.5)		(100.9)		(63.7)		(190.0)		43.8		—		—		(314.3)
Balance as of December 31, 2022	$	4,637.5	$	889.2	$	548.5	$	3,044.0	$	915.5	$	2,920.0	$	2.0	$	12,956.7

(1) U.S. & Canada consists of measurement period adjustments related to the acquisition of InSite Wireless Group, LLC (the “InSite Acquisition”). Asia-Pacific consists of $9.2 million of additions related to the acquisition of Kirtonkhola Tower Bangladesh Limited and measurement period adjustments related to the InSite Acquisition. Europe and Latin America consist of additions and measurement period adjustments related to the Telxius Acquisition (as defined in note 6). Data Centers consists of $3.0 billion of additions related to data center acquisitions, primarily from the CoreSite Acquisition (as defined in note 6).

(2) Europe and Latin America consist of measurement period adjustments related to the Telxius Acquisition. Data Centers consists of measurement period adjustments related to the CoreSite Acquisition.

(3) Other represents the goodwill associated with certain operations acquired in connection with the InSite Acquisition. These business operations were sold during the year ended December 31, 2022.

The Company’s other intangible assets subject to amortization consisted of the following:


		As of December 31, 2022						As of December 31, 2021
	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 20	$	6,058.2	$	(2,537.9)	$	3,520.3	$	6,294.6	$	(2,305.1)	$	3,989.5
Acquired tenant-related intangibles	Up to 20	18,941.2		(5,827.7)		13,113.5		20,030.5		(5,051.5)		14,979.0
Acquired licenses and other intangibles	2-20	1,772.9		(423.4)		1,349.5		1,807.9		(49.2)		1,758.7
Total other intangible assets		$	26,772.3	$	(8,789.0)	$	17,983.3	$	28,133.0	$	(7,405.8)	$	20,727.2

(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 tower communications infrastructure. 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. Other intangibles represent the value of acquired licenses, trade name and in place leases. In place lease value represents the fair value of costs avoided in securing data center customers, including vacancy periods, legal costs and commissions. In place lease value also includes assumptions on similar costs avoided upon the renewal or extension of existing leases on a basis consistent with occupancy assumptions used in the fair value of other assets.

The Company amortizes its acquired intangible assets on a straight-line basis over their estimated useful lives. As of December 31, 2022, the remaining weighted average amortization period of the Company’s intangible assets was 15 years. Amortization of intangible assets for the years ended December 31, 2022, 2021 and 2020 was $1.7 billion, $1.2 billion and $0.9 billion, respectively.

F-23

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Based on current exchange rates, the Company expects to record amortization expense as follows over the next five years:


Fiscal Year	Amount
2023	$	1,424.5
2024	1,338.5
2025	1,286.0
2026	1,233.4
2027	1,219.9

6. ACQUISITIONS

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 or rights acquired and liabilities assumed, with no recognition of goodwill. For those transactions treated as business combinations, the estimates of the fair value of the assets or rights acquired and liabilities assumed at the date of the applicable acquisition are subject to adjustment during the measurement period (up to one year from the particular acquisition date).

The fair value of these net assets acquired are based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. While the Company believes that such preliminary estimates provide a reasonable basis for estimating the fair value of assets acquired and liabilities assumed, it evaluates any necessary information prior to finalization of the fair value. During the measurement period for those acquisitions accounted for as business combinations, the Company will adjust assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the revised estimated values of those assets or liabilities as of that date.

Impact of current year acquisitions—The Company typically acquires communications sites and other communications infrastructure assets from wireless carriers or other tower operators and subsequently integrates those sites and related assets into its existing portfolio of communications sites and related assets. In the United States, acquisitions may also include data center facilities and related assets. The financial results of the Company’s acquisitions have been included in the Company’s consolidated statements of operations for the year ended December 31, 2022 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. Communications 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.

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 and systems, 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 years ended December 31, 2022, 2021 and 2020, the Company recorded acquisition and merger related expenses for business combinations and non-capitalized asset acquisition costs and integration costs as follows:


	Year Ended December 31,
	2022		2021		2020
Acquisition and merger related expenses	$	57.0	$	177.0	$	15.5
Integration costs	$	45.0	$	50.4	$	23.1

During the years ended December 31, 2022, 2021 and 2020, the Company recorded net benefits of $15.1 million, $17.6 million and $4.4 million related to pre-acquisition contingencies and settlements, respectively. The year ended December 31, 2022 included acquisition and merger related costs associated with the Stonepeak Transaction (as defined in note 15). The year ended

F-24

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

December 31, 2021 included acquisition and merger related costs associated with the Telxius Acquisition and the CoreSite Acquisition (each as defined below).

2022 Transactions

The estimated aggregate impact of the acquisitions completed in 2022 on the Company’s revenues and gross margin for the year ended December 31, 2022 was approximately $6.8 million and $4.8 million, respectively. The revenues and gross margin amounts also reflect incremental revenues from the addition of new customers to such communications infrastructure assets subsequent to the transaction date. Acquisitions completed in 2022 were included in all of the Company’s property segments.

Spain Fiber Acquisition—During the year ended December 31, 2022, the Company acquired fiber connected to the Company’s communications sites in Spain from Telefónica de España S.A.U. for an aggregate total purchase price of 120.1 million Euro (“EUR”) (approximately $128.8 million at the dates of closing), including value added tax. This acquisition is being accounted for as an asset acquisition and is included in the table below in “Other.”

New Zealand Acquisition—During the year ended December 31, 2022, the Company, through its recently formed New Zealand subsidiary, acquired land under carrier or other third-party communications sites in New Zealand from Clearspan Pty Ltd for total consideration of 50.1 million New Zealand Dollars (approximately $28.7 million at the date of closing) (the “New Zealand Acquisition”). The New Zealand Acquisition is being accounted for as an asset acquisition and is included in the table below in “Other.”

*Other Acquisitions—*During the year ended December 31, 2022, the Company acquired a total of 507 communications sites, as well as other communications infrastructure assets, in the United States, Canada, France, Mexico, Nigeria and Poland, including 441 communications sites in connection with the Company’s agreements with Orange S.A. (“Orange”) as further described below, for an aggregate purchase price of $298.9 million. Of the aggregate purchase price, $61.2 million is reflected as a payable in the consolidated balance sheet as of December 31, 2022. These acquisitions were accounted for as asset acquisitions and are included in the table below in “Other.”

The following table summarizes the allocations of the purchase prices for the fiscal year 2022 acquisitions based upon their estimated fair value at the date of acquisition:


	Other
Current assets	$	48.4

Property and equipment	198.8
Intangible assets (1):
Tenant-related intangible assets	196.0
Network location intangible assets	31.7

Other non-current assets	23.2
Current liabilities	(2.2)
Deferred tax liability	(7.6)
Other non-current liabilities	(31.9)
Net assets acquired	456.4

Fair value of net assets acquired	456.4


Purchase price	$	456.4

(1) Tenant-related intangible assets and network location intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets.

Other Signed Acquisitions

*Orange Acquisition—*On November 28, 2019, 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 five 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 five-year term. During the years ended December 31, 2020 and 2021, the Company acquired 1,197 of these communications sites. During the year ended December 31, 2022, the Company acquired an additional 441 of these communications sites. The remaining communications sites are expected to continue to close in tranches, subject to customary closing conditions.

F-25

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

2021 Transactions

Telxius Acquisition—On January 13, 2021, the Company entered into two agreements with Telxius Telecom, S.A. (“Telxius”), a subsidiary of Telefónica, S.A., pursuant to which the Company agreed to acquire Telxius’ European and Latin American tower divisions, comprising approximately 31,000 communications sites in Argentina, Brazil, Chile, Germany, Peru and Spain, for approximately 7.7 billion EUR (approximately $9.4 billion at the date of signing) (the “Telxius Acquisition”), subject to certain adjustments. In June 2021, the Company completed the acquisition of nearly 20,000 communications sites in Germany and Spain, for total consideration of approximately 6.3 billion EUR (approximately $7.7 billion at the date of closing), subject to certain post-closing adjustments and over 7,000 communications sites in Brazil, Peru, Chile and Argentina, for total consideration of approximately 0.9 billion EUR (approximately $1.1 billion at the date of closing), subject to certain post-closing adjustments.

On August 2, 2021, the Company completed the acquisition of the approximately 4,000 remaining communications sites in Germany pursuant to the Telxius Acquisition for 0.6 billion EUR (approximately $0.7 billion at the date of closing), subject to certain post-closing adjustments.

Of the aggregate purchase price, 254.6 million EUR (approximately $272.5 million), including post-closing adjustments, of deferred payments are due in September 2025 and are reflected in Other non-current liabilities in the consolidated balance sheet as of December 31, 2022. The acquired operations in Germany and Spain are included in the Europe property segment and the acquired operations in Brazil, Peru, Chile and Argentina are included in the Latin America property segment. The Telxius Acquisition was accounted for as a business combination and the allocation of the purchase price was finalized during the year ended December 31, 2022.

The following table summarizes the preliminary and final allocations of the purchase price paid and the amounts of assets acquired and liabilities assumed for the Telxius Acquisition based upon its estimated fair value at the date of acquisition. Balances are reflected in the accompanying consolidated balance sheet as of December 31, 2022.


	Preliminary Allocation (1)		Final Allocation
Current assets	$	289.0	$	284.1

Property and equipment	1,417.7		1,335.1
Intangible assets (2):
Tenant-related intangible assets	5,391.2		5,381.8
Network location intangible assets	675.8		674.5

Other non-current assets	1,380.3		1,463.4
Current liabilities	(331.9)		(345.2)
Deferred tax liability	(1,227.5)		(1,206.0)
Other non-current liabilities	(1,504.8)		(1,522.1)
Net assets acquired	6,089.8		6,065.6
Goodwill	3,500.0		3,503.7
Fair value of net assets acquired	9,589.8		9,569.3

Purchase price	$	9,589.8	$	9,569.3

(1)Balances reflect the preliminary allocation as of September 30, 2021 following the August 2, 2021 closing of the second tranche of the Telxius Acquisition in Germany.

(2)Tenant-related intangible assets and network location intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets.

CoreSite Acquisition—On November 14, 2021, the Company entered into an agreement with CoreSite Realty Corporation (“CoreSite”) to acquire all issued and outstanding shares of CoreSite common stock at $170.00 per share. CoreSite’s portfolio consisted of 24 data center facilities and related assets in eight United States markets. On December 28, 2021, the Company completed the CoreSite Acquisition for total consideration of approximately $10.4 billion, including the assumption and repayment of CoreSite’s existing debt (the “CoreSite Acquisition”). The acquired assets and operations are included in the Data Centers segment. The CoreSite Acquisition was accounted for as a business combination. The allocation of the purchase price was finalized during the year ended December 31, 2022.

F-26

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

The following table summarizes the preliminary and final allocations of the purchase price paid and the amounts of assets acquired and liabilities assumed for the CoreSite Acquisition based upon its estimated fair value at the date of acquisition. Balances are reflected in the accompanying consolidated balance sheet as of December 31, 2022.


	Preliminary Allocation		Final Allocation
Current assets	$	99.8	$	99.6

Property and equipment	5,129.0		5,290.2
Intangible assets (1):
Tenant-related intangible assets	665.0		655.0

Other intangible assets	1,709.0		1,636.3
Other non-current assets	332.9		330.1
Current liabilities	(156.6)		(156.2)

Other non-current liabilities	(323.1)		(340.6)
Net assets acquired	7,456.0		7,514.4
Goodwill	2,943.3		2,884.9
Fair value of net assets acquired	10,399.3		10,399.3
Debt assumed (2)	(955.1)		(955.1)
Purchase price (3)	$	9,444.2	$	9,444.2

(1)Tenant-related intangible assets are amortized on a straight-line basis over a 10 year period. Other intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets.

(2)The CoreSite Acquisition debt assumed included $875.0 million of CoreSite’s indebtedness and a fair value adjustment of $80.1 million. The fair value adjustment was based primarily on reported market values using Level 2 inputs.

(3)The CoreSite Acquisition purchase price included $17.1 million of consideration related to the fair value of certain equity awards previously granted by CoreSite under its equity plan that the Company assumed and converted into corresponding equity awards with respect to shares of the Company’s common stock (the “CoreSite Replacement Awards”). The CoreSite Replacement Awards continue to vest in accordance with the terms of CoreSite’s equity plan. The fair value of the CoreSite Replacement Awards for services rendered through December 28, 2021, the CoreSite Acquisition date, was recognized as a component of the purchase price, with the remaining fair value of the CoreSite Replacement Awards related to the post-combination services recorded as stock-based compensation over the remaining vesting period.

Pro Forma Consolidated Results (Unaudited)

The following table presents the unaudited pro forma financial results as if the 2022 acquisitions had occurred on January 1, 2021 and the 2021 acquisitions had occurred on January 1, 2020. The pro forma results, to the extent available, are based on historical information, and accordingly may not fully reflect the current operations of the acquired business. In addition, 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 dates indicated, nor are they indicative of the future operating results of the Company.


	Year Ended December 31,
	2022		2021
Pro forma revenues	$	10,720.7	$	10,366.4
Pro forma net income attributable to American Tower Corporation common stockholders	$	1,766.1	$	2,092.4
Pro forma net income per common share amounts:
Basic net income attributable to American Tower Corporation common stockholders	$	3.79	$	4.51
Diluted net income attributable to American Tower Corporation common stockholders	$	3.78	$	4.49

F-27

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

7. ACCRUED EXPENSES

Accrued expenses consisted of the following:


	As of
	December 31, 2022		December 31, 2021
Accrued construction costs	$	230.8	$	197.3
Accrued income tax payable	29.8		84.8
Accrued pass-through costs	85.1		91.0
Amounts payable for acquisitions	55.2		95.2
Amounts payable to tenants	95.2		81.1
Accrued property and real estate taxes	270.1		255.3
Accrued rent	77.3		78.8
Payroll and related withholdings	140.4		124.7
Other accrued expenses	360.3		404.6

Accrued expenses	$	1,344.2	$	1,412.8

F-28

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

8. 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:


	As of
	December 31, 2022	December 31, 2021	Contractual Interest Rate (1)		Maturity Date (1)

2021 Multicurrency Credit Facility (2) (3)	3,788.7	4,388.4	4.683	%	June 30, 2025
2021 Term Loan (2)	996.3	995.4	5.460	%	January 31, 2027
2021 Credit Facility (2)	1,080.0	1,410.0	5.456	%	January 31, 2027

2021 EUR Three Year Delayed Draw Term Loan (2) (3)	882.9	937.6	2.730	%	May 28, 2024
2021 USD 364-Day Delayed Draw Term Loan (4)	—	2,998.5	N/A		N/A
2021 USD Two Year Delayed Draw Term Loan (2)	1,499.3	1,498.4	5.563	%	December 28, 2023
2.250% senior notes (5)	—	600.3	N/A		N/A

3.50% senior notes (6)	999.8	997.9	3.500	%	January 31, 2023
3.000% senior notes	694.5	709.9	3.000	%	June 15, 2023
0.600% senior notes	498.9	497.9	0.600	%	January 15, 2024
5.00% senior notes	1,000.5	1,000.9	5.000	%	February 15, 2024
3.375% senior notes	648.3	647.0	3.375	%	May 15, 2024
2.950% senior notes	646.4	644.7	2.950	%	January 15, 2025
2.400% senior notes	747.3	746.1	2.400	%	March 15, 2025
1.375% senior notes (7)	532.1	563.8	1.375	%	April 4, 2025
4.000% senior notes	746.8	745.5	4.000	%	June 1, 2025
1.300% senior notes	497.3	496.4	1.300	%	September 15, 2025
4.400% senior notes	498.1	497.6	4.400	%	February 15, 2026
1.600% senior notes	696.3	695.2	1.600	%	April 15, 2026
1.950% senior notes (7)	532.1	564.3	1.950	%	May 22, 2026
1.450% senior notes	594.5	593.0	1.450	%	September 15, 2026
3.375% senior notes	992.9	991.2	3.375	%	October 15, 2026
3.125% senior notes	398.6	398.3	3.125	%	January 15, 2027
2.750% senior notes	746.1	745.2	2.750	%	January 15, 2027
0.450% senior notes (7)	798.2	847.1	0.450	%	January 15, 2027
0.400% senior notes (7)	530.4	562.5	0.400	%	February 15, 2027
3.650% senior notes	643.3	—	3.650	%	March 15, 2027
3.55% senior notes	746.3	745.5	3.550	%	July 15, 2027
3.600% senior notes	695.1	694.3	3.600	%	January 15, 2028
0.500% senior notes (7)	796.6	845.3	0.500	%	January 15, 2028
1.500% senior notes	646.5	645.8	1.500	%	January 31, 2028
3.950% senior notes	592.6	591.6	3.950	%	March 15, 2029
0.875% senior notes (7)	797.8	847.3	0.875	%	May 21, 2029
3.800% senior notes	1,636.8	1,635.1	3.800	%	August 15, 2029
2.900% senior notes	743.4	742.5	2.900	%	January 15, 2030
2.100% senior notes	742.2	741.2	2.100	%	June 15, 2030
0.950% senior notes (7)	528.5	561.0	0.950	%	October 5, 2030
1.875% senior notes	792.5	791.4	1.875	%	October 15, 2030
2.700% senior notes	694.4	693.7	2.700	%	April 15, 2031
2.300% senior notes	691.9	691.0	2.300	%	September 15, 2031
1.000% senior notes (7)	689.1	731.7	1.000	%	January 15, 2032
4.050% senior notes	642.2	—	4.050	%	March 15, 2032
1.250% senior notes (7)	528.5	561.2	1.250	%	May 21, 2033
3.700% senior notes	592.2	592.1	3.700	%	October 15, 2049
3.100% senior notes	1,038.3	1,038.0	3.100	%	June 15, 2050

F-29

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)


2.950% senior notes	1,022.5		1,021.5		2.950	%	January 15, 2051
Total American Tower Corporation debt	36,307.0		39,943.3

Series 2013-2A Securities (8)	1,299.7		1,298.2		3.070	%	March 15, 2023
Series 2018-1A Securities (8)	496.1		495.3		3.652	%	March 15, 2028
Series 2015-2 Notes (9)	523.4		522.7		3.482	%	June 16, 2025

CoreSite Debt (10)	—		955.1		N/A		N/A
Other subsidiary debt (11)	16.2		8.0		Various		Various
Total American Tower subsidiary debt	2,335.4		3,279.3
Finance lease obligations	27.8		31.6
Total	38,670.2		43,254.2
Less current portion of long-term obligations	(4,514.2)		(4,568.7)
Long-term obligations	$	34,156.0	$	38,685.5

(1)Reflects interest rate or maturity date as of December 31, 2022; interest rate does not reflect the impact of the interest rate swap agreements.

(2)Accrues interest at a variable rate.

(3)Reflects borrowings denominated in EUR and, for the 2021 Multicurrency Credit Facility (as defined below), reflects borrowings denominated in both EUR and U.S. Dollars (“USD”).

(4)Repaid in full during the year ended December 31, 2022 using proceeds from (i) the issuance of the 3.650% Notes and the 4.050% Notes (each as defined below), (ii) the June 2022 common stock offering (as further discussed in note 14), (iii) the Stonepeak Transaction (as defined and further discussed in note 15) and (iv) cash on hand.

(5)Repaid in full on January 14, 2022 using borrowings under the 2021 Credit Facility (as defined below).

(6)Repaid in full on January 31, 2023 using borrowings under the 2021 Credit Facility.

(7)Notes are denominated in EUR.

(8)Maturity date reflects the anticipated repayment date; final legal maturity is March 15, 2048.

(9)Maturity date reflects the anticipated repayment date; final legal maturity is June 15, 2050.

(10)Debt entered into by CoreSite assumed in connection with the CoreSite Acquisition (the “CoreSite Debt”). On January 7, 2022, all amounts outstanding under the CoreSite Debt were repaid using borrowings under the 2021 Multicurrency Credit Facility and cash on hand.

(11)Includes the Nigeria Letters of Credit (as defined below). As of December 31, 2021, also included the Kenya Debt and the U.S. Subsidiary Debt (each as defined below).

Current portion of long-term obligations*—*The Company’s current portion of long-term obligations primarily includes (i) $1.5 billion in borrowings under the 2021 USD Two Year Delayed Draw Term Loan (as defined below), (ii) $1.3 billion aggregate principal amount of the Company’s Secured Tower Revenue Securities, Series 2013-2A due March 15, 2023, (iii) $1.0 billion aggregate principal amount of the Company’s 3.50% senior unsecured notes due January 31, 2023 (the “3.50% Notes”) and (iv) $700.0 million aggregate principal amount of the Company’s 3.000% senior unsecured notes due June 15, 2023.

American Tower Corporation Debt

Bank Facilities

*2021 Multicurrency Credit Facility—*During the year ended December 31, 2022, the Company borrowed an aggregate of $850.0 million and repaid an aggregate of $1.4 billion of revolving indebtedness under the Company’s $6.0 billion senior unsecured multicurrency revolving credit facility, as amended and restated in December 2021 (the “2021 Multicurrency Credit Facility”). The Company used the borrowings to repay outstanding indebtedness, including the CoreSite Debt, and for general corporate purposes.

*2021 Credit Facility—*During the year ended December 31, 2022, the Company borrowed an aggregate of $3.3 billion and repaid an aggregate of $3.7 billion of revolving indebtedness under the Company’s $4.0 billion senior unsecured revolving credit facility, as amended and restated in December 2021 (the “2021 Credit Facility”). The Company used the borrowings to repay outstanding indebtedness, including the 2.250% Notes (as defined below), and for general corporate purposes.

F-30

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Repayments under the 2021 USD 364-Day Delayed Draw Term Loan—On April 6, 2022, the Company repaid $100.0 million of indebtedness under the Company’s $3.0 billion unsecured term loan entered into in December 2021 (the “2021 USD 364-Day Delayed Draw Term Loan”) using proceeds from the issuance of the 3.650% Notes and the 4.050% Notes (each as defined below) and cash on hand. On June 10, 2022, the Company repaid $2.3 billion of indebtedness under the 2021 USD 364-Day Delayed Draw Term Loan using proceeds from the June 2022 common stock offering (as further discussed in note 14) and cash on hand. On August 11, 2022, the Company repaid all remaining amounts outstanding under the 2021 USD 364-Day Delayed Draw Term Loan using proceeds from the initial closing of the Stonepeak Transaction (as defined and further discussed in note 15).

As of December 31, 2022, the key terms under the 2021 Multicurrency Credit Facility, the 2021 Credit Facility, the Company’s $1.0 billion unsecured term loan, as amended and restated in December 2021 (the “2021 Term Loan”), the Company’s 825.0 million EUR unsecured term loan, as amended in December 2021 (the “2021 EUR Three Year Delayed Draw Term Loan”) and the Company’s $1.5 billion unsecured term loan entered into in December 2021 (the “2021 USD Two Year Delayed Draw Term Loan”) were as follows:


	Outstanding Principal Balance		Undrawn letters of credit		Maturity Date		Current margin over LIBOR or EURIBOR (1)		Current commitment fee (2)
2021 Multicurrency Credit Facility	$	3,788.7	$	3.5	June 30, 2025	(3)	1.125	%	0.110	%
2021 Credit Facility	1,080.0		30.9		January 31, 2027	(3)	1.125	%	0.110	%
2021 Term Loan	1,000.0		N/A		January 31, 2027		1.125	%	N/A
2021 EUR Three Year Delayed Draw Term Loan	883.2		N/A		May 28, 2024		1.125	%	N/A

2021 USD Two Year Delayed Draw Term Loan	1,500.0		N/A		December 28, 2023		1.125	%	N/A

(1) London Interbank Offered Rate (“LIBOR”) applies to the USD denominated borrowings under the 2021 Multicurrency Credit Facility, the 2021 Credit Facility, the 2021 Term Loan and the 2021 USD Two Year Delayed Draw Term Loan. Euro Interbank Offer Rate (“EURIBOR”) applies to the EUR denominated borrowings under the 2021 Multicurrency Credit Facility and all of the borrowings under the 2021 EUR Three Year Delayed Draw Term Loan.

(2) Fee on undrawn portion of each credit facility.

(3) Subject to two optional renewal periods.

The loan agreements for each of the 2021 Multicurrency Credit Facility, the 2021 Credit Facility, the 2021 Term Loan, the 2021 EUR Three Year Delayed Draw Term Loan and the 2021 USD Two Year Delayed Draw Term Loan contain 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 agreements could not only prevent the Company from being able to borrow additional funds under the revolving credit facilities, but may constitute a default, which could result in, among other things, the amounts outstanding under the applicable agreement, including all accrued interest and unpaid fees, becoming immediately due and payable.

Senior Notes

Repayment of Senior Notes

*Repayment of 2.250% Senior Notes—*On January 14, 2022, the Company repaid $600.0 million aggregate principal amount of the Company’s 2.250% senior unsecured notes due 2022 (the “2.250% Notes”) upon their maturity. The 2.250% Notes were repaid using borrowings under the 2021 Credit Facility. Upon completion of the repayment, none of the 2.250% Notes remained outstanding.

Offering of Senior Notes

*3.650% Senior Notes and 4.050% Senior Notes Offering—*On April 1, 2022, the Company completed a registered public offering of $650.0 million aggregate principal amount of 3.650% senior unsecured notes due 2027 (the “3.650% Notes”) and $650.0 million aggregate principal amount of 4.050% senior unsecured notes due 2032 (the “4.050% Notes”). The net proceeds from this offering were approximately $1,282.6 million, after deducting commissions and estimated expenses. The Company used the net proceeds to repay existing indebtedness under the 2021 Multicurrency Credit Facility, the 2021 Credit Facility and the 2021 USD 364-Day Delayed Draw Term Loan.

F-31

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

The following table outlines key terms related to the Company’s outstanding senior notes as of December 31, 2022:


		Adjustments to Principal Amount (1)
	Aggregate Principal Amount	2022	2021	Interest payments due (2)	Issue Date	Par Call Date (3)
3.50% Notes	1,000.0	(0.2)	(2.1)	January 31 and July 31	January 8, 2013	N/A
3.000% Notes (4)	700.0	(5.5)	9.9	June 15 and December 15	December 8, 2017	N/A
0.600% Notes	500.0	(1.1)	(2.1)	January 15 and July 15	November 20, 2020	N/A
5.00% Notes (5)	1,000.0	0.5	0.9	February 15 and August 15	August 19, 2013	N/A
3.375% Notes	650.0	(1.7)	(3.0)	May 15 and November 15	March 15, 2019	April 15, 2024
2.950% Notes	650.0	(3.6)	(5.3)	January 15 and July 15	June 13, 2019	December 15, 2024
2.400% Notes	750.0	(2.7)	(3.9)	March 15 and September 15	January 10, 2020	February 15, 2025
1.375% Notes (6)	535.3	(3.2)	(4.8)	April 4	April 6, 2017	January 4, 2025
4.000% Notes	750.0	(3.2)	(4.5)	June 1 and December 1	May 7, 2015	March 1, 2025
1.300% Notes	500.0	(2.7)	(3.6)	March 15 and September 15	June 3, 2020	August 15, 2025
4.400% Notes	500.0	(1.9)	(2.4)	February 15 and August 15	January 12, 2016	November 15, 2025
1.600% Notes	700.0	(3.7)	(4.8)	April 15 and October 15	March 29, 2021	March 15, 2026
1.950% Notes (6)	535.3	(3.2)	(4.3)	May 22	May 22, 2018	February 22, 2026
1.450% Notes	600.0	(5.5)	(7.0)	March 15 and September 15	September 27, 2021	August 15, 2026
3.375% Notes	1,000.0	(7.1)	(8.8)	April 15 and October 15	May 13, 2016	July 15, 2026
3.125% Notes	400.0	(1.4)	(1.7)	January 15 and July 15	September 30, 2016	October 15, 2026
2.750% Notes	750.0	(3.9)	(4.8)	January 15 and July 15	October 3, 2019	November 15, 2026
0.450% Notes (6)	802.9	(4.7)	(5.9)	January 15	May 21, 2021	November 15, 2026
0.400% Notes (6)	535.3	(4.9)	(6.1)	February 15	October 5, 2021	December 15, 2026
3.650% Notes	650.0	(6.7)	—	March 15 and September 15	April 1, 2022	February 15, 2027
3.55% Notes	750.0	(3.7)	(4.5)	January 15 and July 15	June 30, 2017	April 15, 2027
3.600% Notes	700.0	(4.9)	(5.7)	January 15 and July 15	December 8, 2017	October 15, 2027
0.500% Notes (6)	802.9	(6.3)	(7.7)	January 15	September 10, 2020	October 15, 2027
1.500% Notes	650.0	(3.5)	(4.2)	January 31 and July 31	November 20, 2020	November 30, 2027
3.950% Notes	600.0	(7.4)	(8.4)	March 15 and September 15	March 15, 2019	December 15, 2028
0.875% Notes (6)	802.9	(5.1)	(5.7)	May 21	May 21, 2021	February 21, 2029
3.800% Notes	1,650.0	(13.2)	(14.9)	February 15 and August 15	June 13, 2019	May 15, 2029
2.900% Notes	750.0	(6.6)	(7.5)	January 15 and July 15	January 10, 2020	October 15, 2029
2.100% Notes	750.0	(7.8)	(8.8)	June 15 and December 15	June 3, 2020	March 15, 2030
0.950% Notes (6)	535.3	(6.8)	(7.6)	October 5	October 5, 2021	July 5, 2030
1.875% Notes	800.0	(7.5)	(8.6)	April 15 and October 15	September 28, 2020	July 15, 2030
2.700% Notes	700.0	(5.6)	(6.3)	April 15 and October 15	March 29, 2021	January 15, 2031
2.300% Notes	700.0	(8.1)	(9.0)	March 15 and September 15	September 27, 2021	June 15, 2031
1.000% Notes (6)	695.9	(6.8)	(7.5)	January 15	September 10, 2020	October 15, 2031
4.050% Notes	650.0	(7.8)	—	March 15 and September 15	April 1, 2022	December 15, 2031
1.250% Notes (6)	535.3	(6.8)	(7.4)	May 21	May 21, 2021	February 21, 2033
3.700% Notes	600.0	(7.8)	(7.9)	April 15 and October 15	October 3, 2019	April 15, 2049
3.100% Notes (7)	1,050.0	(11.7)	(12.0)	June 15 and December 15	June 3, 2020	December 15, 2049
2.950% Notes (8)	1,050.0	(27.5)	(28.5)	January 15 and July 15	November 20, 2020	July 15, 2050

(1) Includes unamortized discounts, premiums and debt issuance costs and fair value adjustments due to interest rate swaps.

F-32

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

(2) 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.

(3) 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.

(4) Includes $(4.9) million and $11.8 million fair value adjustment due to interest rate swaps in 2022 and 2021, respectively.

(5) The original issue date for the initial 5.00% Notes was August 19, 2013. The issue date for the reopened 5.00% Notes was January 10, 2014.

(6) Notes are denominated in EUR.

(7) The original issue date for the initial 3.100% Notes was June 3, 2020. The issue date for the reopened 3.100% Notes was September 28, 2020.

(8) The original issue date for the initial 2.950% Notes was November 20, 2020. The issue date for the reopened 2.950% Notes was September 27, 2021.

The Company may redeem each series of senior notes at any time, subject to the terms of the applicable supplemental indenture, in whole or in part, at a redemption price equal to 100% of the principal amount of the notes plus a make-whole premium, as applicable, together with accrued interest to the redemption date. In addition, if the Company undergoes a change of control and corresponding ratings decline, each as defined in the applicable supplemental indenture for the notes, the Company may be required to repurchase all of the applicable notes at a purchase price equal to 101% of the principal amount of such notes, plus accrued and unpaid interest (including additional interest, if any), up to but not including the repurchase date. The notes rank equally with all of the Company’s other senior unsecured debt and are structurally subordinated to all existing and future indebtedness and other obligations of its subsidiaries.

Each applicable supplemental indenture for the notes contains 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. As of December 31, 2022, the Company was in compliance with each of these covenants.

American Tower Subsidiary Debt

Securitizations

The Company has several securitizations in place. Cash flows generated by the communications 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.

American Tower Secured Revenue Notes, Series 2015-1, Class A and Series 2015-2, Class A—In May 2015, GTP Acquisition Partners I, LLC (“GTP Acquisition Partners”), one of the Company’s wholly owned subsidiaries, refinanced existing debt with cash on hand and proceeds from a private issuance (the “2015 Securitization”) of $350.0 million of American Tower Secured Revenue Notes, Series 2015-1, Class A, which were subsequently repaid on the June 2020 payment date, and $525.0 million of American Tower Secured Revenue Notes, Series 2015-2, Class A (the “Series 2015-2 Notes”).

The Series 2015-2 Notes were issued by GTP Acquisition Partners pursuant to a Third Amended and Restated Indenture and related series supplements, each dated as of May 29, 2015 (collectively, the “2015 Indenture”), between GTP Acquisition Partners and its subsidiaries (the “GTP Entities”) and The Bank of New York Mellon, as trustee. The effective weighted average life and interest rate of the 2015 Notes was 8.1 years and 3.029%, respectively, as of the date of issuance.

The outstanding Series 2015-2 Notes are secured by (i) mortgages, deeds of trust and deeds to secure debt on substantially all of the 3,516 communications sites (the “2015 Secured Sites”) owned by the GTP Entities and their operating cash flows, (ii) a security interest in substantially all of the personal property and fixtures of the GTP Entities, including GTP Acquisition Partners’ equity interests in its subsidiaries and (iii) the rights of the GTP Entities under a management agreement. American Tower Holding Sub II, LLC, whose only material assets are its equity interests in GTP Acquisition Partners, has guaranteed repayment of the Series 2015-2 Notes and pledged its equity interests in GTP Acquisition Partners as security for such payment obligations.

Secured Tower Revenue Securities, Series 2013-2A, Secured Tower Revenue Securities, Series 2018-1, Subclass A and Series 2018-1, Subclass R—On March 29, 2018, the Company completed a securitization transaction (the “2018 Securitization”), in which the American Tower Trust I (the “Trust”) issued $500.0 million aggregate principal amount of Secured Tower Revenue

F-33

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Securities, Series 2018-1, Subclass A (the “Series 2018-1A Securities”). To satisfy the applicable risk retention requirements of Regulation RR promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act” and, such requirements, the “Risk Retention Rules”), the Trust issued, and one of the Company’s affiliates purchased, $26.4 million aggregate principal amount of Secured Tower Revenue Securities, Series 2018-1, Subclass R (the “Series 2018-1R Securities” and, together with the Series 2018-1A Securities, the “2018 Securities”) to retain an “eligible horizontal residual interest” (as defined in the Risk Retention Rules) in an amount equal to at least 5% of the fair value of the 2018 Securities.

The Secured Tower Revenue Securities, Series 2013-2A (the “Series 2013-2A Securities” and, together with the 2018 Securities the “Trust Securities”) issued in a securitization transaction in March 2013 (the “2013 Securitization” and, together with the 2018 Securitization, the “Trust Securitizations”) remain outstanding and are subject to the terms of the Second Amended and Restated Trust and Servicing Agreement entered into in connection with the 2018 Securitization.

The assets of the Trust consist of a nonrecourse loan (the “Loan”) made by the Trust to American Tower Asset Sub, LLC and American Tower Asset Sub II, LLC (together, the “AMT Asset Subs”). The AMT Asset Subs are jointly and severally liable under the Loan, which is secured primarily by mortgages on the AMT Asset Subs’ interests in 5,102 broadcast and wireless communications towers and related assets (the “Trust Sites”).

The component of the Loan corresponding to the Series 2013-2A Securities also remains outstanding and is subject to the terms of the Second Amended and Restated Loan and Security Agreement among the Trust and the AMT Asset Subs, dated as of March 29, 2018 (the “Loan Agreement”). The Loan Agreement includes terms and conditions, including with respect to secured assets, substantially consistent with the First Amended and Restated Loan and Security Agreement dated as of March 15, 2013. The 2018 Securities correspond to components of the Loan made to the AMT Asset Subs pursuant to the Loan Agreement and were issued in two separate subclasses of the same series. The 2018 Securities represent a pass-through interest in the components of the Loan corresponding to the 2018 Securities. The Series 2018-1A Securities have an interest rate of 3.652% and the Series 2018-1R Securities have an interest rate of 4.459%. The 2018 Securities have an expected life of approximately ten years with a final repayment date in March 2048. Subject to certain limited exceptions described below, no payments of principal will be required to be made on the components of the Loan corresponding to the 2018 Securities prior to the monthly payment date in March 2028, which is the anticipated repayment date for such components.

The Loan is secured by (1) mortgages, deeds of trust and deeds to secure debt on substantially all of the Trust Sites and their operating cash flows, (2) a security interest in substantially all of the AMT Asset Subs’ personal property and fixtures and (3) the AMT Asset Subs’ rights under that certain management agreement among the AMT Asset Subs and SpectraSite Communications, LLC entered into in March 2013. American Tower Holding Sub, LLC (the “Guarantor”), whose only material assets are its equity interests in each of the AMT Asset Subs, and American Tower Guarantor Sub, LLC whose only material asset is its equity interests in the Guarantor, have each guaranteed repayment of the Loan and pledged their equity interests in their respective subsidiary or subsidiaries as security for such payment obligations.

Under the terms of the Loan Agreement and the 2015 Indenture, amounts due will be paid from the cash flows generated by the Trust Sites or the 2015 Secured Sites, respectively, which must be deposited into certain reserve accounts, and thereafter distributed, solely pursuant to the terms of the Loan Agreement or 2015 Indenture, as applicable. On a monthly basis, after payment of all required amounts under the Loan Agreement or 2015 Indenture, as applicable, including interest payments, subject to the conditions described below, the excess cash flows generated from the operation of such assets are released to the AMT Asset Subs or GTP Acquisition Partners, as applicable, which can then be distributed to, and used by, the Company.

In order to distribute any excess cash flow to the Company, the AMT Asset Subs and GTP Acquisition Partners must each maintain a specified debt service coverage ratio (the “DSCR”), which is generally calculated as the ratio of the net cash flow (as defined in the applicable agreement) to the amount of interest, servicing fees and trustee fees required to be paid over the succeeding 12 months on the principal amount of the Loan or the 2015 Notes, as applicable, that will be outstanding on the payment date following such date of determination. If the DSCR were equal to or below 1.30x (the “Cash Trap DSCR”) for any quarter, then all cash flow in excess of amounts required to make debt service payments, fund required reserves, pay management fees and budgeted operating expenses and make other payments required under the applicable transaction documents, referred to as excess cash flow, will be deposited into a reserve account (the “Cash Trap Reserve Account”) instead of being released to the AMT Asset Subs or GTP Acquisition Partners, as applicable. The funds in the Cash Trap Reserve Account will not be released to the AMT Asset Subs or GTP Acquisition Partners, as applicable, unless the DSCR exceeds the Cash Trap DSCR for two consecutive calendar quarters.

Additionally, an “amortization period” commences if, as of the end of any calendar quarter, the DSCR is equal to or below 1.15x (the “Minimum DSCR”) and will continue to exist until the DSCR exceeds the Minimum DSCR for two consecutive calendar quarters. With respect to the Trust Securities, an “amortization period” also commences if, on the anticipated

F-34

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

repayment date the component of the Loan corresponding to the applicable subclass of the Trust Securities has not been repaid in full, provided that such amortization period shall apply with respect to such component that has not been repaid in full. If the Series 2015-2 Notes have not been repaid in full on the applicable anticipated repayment date, additional interest will accrue on the unpaid principal balance of the Series 2015-2 Notes, and such notes will begin to amortize on a monthly basis from excess cash flow. During an amortization period, all excess cash flow and any amounts then in the applicable Cash Trap Reserve Account would be applied to pay the principal of the Loan or the Series 2015-2 Notes, as applicable, on each monthly payment date.

The Loan and the Series 2015-2 Notes may be prepaid in whole or in part at any time, provided such payment is accompanied by the applicable prepayment consideration. If the prepayment occurs within 18 months of the anticipated repayment date with respect to the Series 2013-2A Securities or the Series 2015-2 Notes, or 36 months of the anticipated repayment date with respect to the Series 2018 Securities, no prepayment consideration is due.

The Loan Agreement and the 2015 Indenture include operating covenants and other restrictions customary for transactions subject to rated securitizations. Among other things, the AMT Asset Subs and the GTP Entities, as applicable, are prohibited from incurring other indebtedness for borrowed money or further encumbering their assets subject to customary carve-outs for ordinary course trade payables and permitted encumbrances (as defined in the Loan Agreement or the 2015 Indenture, as applicable). The organizational documents of the AMT Asset Subs and the GTP Entities contain provisions consistent with rating agency securitization criteria for special purpose entities, including the requirement that they maintain independent directors. The Loan Agreement and the 2015 Indenture also contain certain covenants that require the AMT Asset Subs or GTP Acquisition Partners, as applicable, to provide the respective trustee with regular financial reports and operating budgets, promptly notify such trustee of events of default and material breaches under the Loan Agreement and other agreements related to the Trust Sites or the 2015 Indenture and other agreements related to the 2015 Secured Sites, as applicable, and allow the applicable trustee reasonable access to the sites, including the right to conduct site investigations.

A failure to comply with the covenants in the Loan Agreement or the 2015 Indenture could prevent the AMT Asset Subs or GTP Acquisition Partners, as applicable, from distributing excess cash flow to the Company. Furthermore, if the AMT Asset Subs or GTP Acquisition Partners were to default on the Loan or the Series 2015-2 Notes, the applicable trustee may seek to foreclose upon or otherwise convert the ownership of all or any portion of the Trust Sites or the 2015 Secured Sites, respectively, in which case the Company could lose the revenue and cash flows associated with those assets. With respect to the Series 2015-2 Notes, upon the occurrence of, and during, an event of default, the applicable trustee may, in its discretion or at the direction of holders of more than 50% of the aggregate outstanding principal of the Series 2015-2 Notes, declare such notes immediately due and payable, in which case any excess cash flow would need to be used to pay holders of such notes.

Further, under the Loan Agreement and the 2015 Indenture, the AMT Asset Subs or GTP Acquisition Partners, respectively, are required to maintain reserve accounts, including for ground rents, real estate and personal property taxes and insurance premiums, and, under the 2015 Indenture and in certain circumstances under the Loan Agreement, to reserve a portion of advance rents from tenants on the Trust Sites. Based on the terms of the Loan Agreement and the 2015 Indenture, all rental cash receipts received for each month are reserved for the succeeding month and held in an account controlled by the applicable trustee and then released. The $68.7 million held in the reserve accounts with respect to the Trust Securitizations and the $9.7 million held in the reserve accounts with respect to the 2015 Securitization as of December 31, 2022 are classified as Restricted cash on the Company’s accompanying consolidated balance sheets.

India Indebtedness*—*The India indebtedness includes several working capital facilities, most of which are subject to annual renewal. The working capital facilities bear interest at rates that consist of the applicable bank’s Marginal Cost of Funds based Lending Rate or Market Benchmark (as defined in the applicable agreement), plus a spread. Generally, the working capital facilities are payable on demand prior to maturity. As of December 31, 2022, the Company has not borrowed under these facilities.

Amounts outstanding and key terms of the India indebtedness consisted of the following as of December 31, 2022 (in millions, except percentages):


	Amount Outstanding (INR)	Amount Outstanding (USD)		Interest Rate (Range)	Maturity Date (Range)

Working capital facilities (1)	—	$	—	8.03% - 8.80%	February 4, 2023 - October 22, 2023

(1) 7.9 billion Indian Rupees (“INR”) ($95.6 million) of borrowing capacity as of December 31, 2022. The Company has 0.2 billion INR (approximately $2.6 million) of bank guarantees outstanding included within the overall borrowing capacity.

F-35

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Other Subsidiary Debt*—*The Company’s other subsidiary debt as of December 31, 2022 includes drawn letters of credit in Nigeria (the “Nigeria Letters of Credit”).

As of December 31, 2021, other subsidiary debt also included (i) a note entered into by one of the Company’s subsidiaries in October 2018 in connection with the acquisition of communications sites in Kenya (the “Kenya Debt”) and (ii) U.S. subsidiary debt related to a seller-financed acquisition (the “U.S. Subsidiary Debt”).

Amounts outstanding and key terms of other subsidiary debt consisted of the following as of December 31, (in millions, except percentages):


	Carrying Value (USD)			Interest Rate		Maturity Date
		2022		2021
Nigeria Letters of Credit (1)		$	16.2	$	—	Various	Various
Kenya Debt (2)		$	—	$	7.4	N/A	N/A
U.S. Subsidiary Debt (3)		$	—	$	0.6	N/A	N/A

(1) Denominated in USD. During the year ended December 31, 2022, we drew on letters of credit in Nigeria. The drawn amounts bear interest at a rate equal to the Secured Overnight Financing Rate at the time of drawing plus a spread. Amounts are due 270 days from the date of drawing.

(2) Denominated in USD, with an original principal amount of $51.8 million. The loan agreement for the Kenya Debt required that the debt be paid either (i) in future installments subject to the satisfaction of specified conditions or (ii) five years from the note origination date, including the exercise of an optional two year extension, subject to the satisfaction of specified conditions. As of December 31, 2022, there are no amounts outstanding under the Kenya Debt.

(3) Related to a seller-financed acquisition. Denominated in USD with an original principal amount of $2.5 million. Repaid in full during the year ended December 31, 2022.

Each of the agreements governing the other subsidiary debt contains contractual covenants and other restrictions. Failure to comply with certain of the financial and operating covenants could constitute a default under the applicable debt agreement, which could result in, among other things, the amounts outstanding, including all accrued interest and unpaid fees, becoming immediately due and payable.

CoreSite Debt*—*The CoreSite Debt included senior unsecured notes previously entered into by CoreSite. The Company acquired this debt in connection with the CoreSite Acquisition. The CoreSite Debt was recorded at fair value upon the closing of the CoreSite Acquisition. On January 7, 2022, the Company repaid the entire amount outstanding under the CoreSite Debt, plus accrued and unpaid interest up to, but excluding, January 7, 2022, for an aggregate redemption price of $962.9 million, including $80.1 million of prepayment consideration and $7.8 million in accrued and unpaid interest. The repayment of the CoreSite Debt was funded with borrowings under the 2021 Multicurrency Credit Facility and cash on hand.

Finance Lease Obligations—The Company’s finance lease obligations approximated $27.8 million and $31.6 million as of December 31, 2022 and 2021, respectively. Finance lease obligations are described further in note 4.

Maturities—Aggregate principal maturities of long-term debt, including finance leases, for the next five years and thereafter are expected to be:


Fiscal Year	Amount
2023	$	4,514.2
2024	3,038.6
2025	7,501.3
2026	3,336.6
2027	5,969.2
Thereafter	14,541.9
Total cash obligations	38,901.8
Unamortized discounts, premiums and debt issuance costs and fair value adjustments, net	(231.6)
Balance as of December 31, 2022	$	38,670.2

F-36

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

9. OTHER NON-CURRENT LIABILITIES

Other non-current liabilities consisted of the following:


	As of
	December 31, 2022		December 31, 2021

Unearned revenue	$	489.5	$	540.2
Other miscellaneous liabilities	697.3		649.6
Other non-current liabilities	$	1,186.8	$	1,189.8

10. ASSET RETIREMENT OBLIGATIONS

The changes in the carrying amount of the Company’s asset retirement obligations were as follows:


	2022		2021
Beginning balance as of January 1,	$	2,003.0	$	1,571.3
Additions	32.9		361.9
Accretion expense	114.8		108.5
Revisions in estimates (1)	(91.2)		(30.3)
Settlements	(12.1)		(8.4)
Balance as of December 31,	$	2,047.4	$	2,003.0

(1)Revisions in estimates include decreases to the liability of $24.6 million and $62.0 million related to foreign currency translation for the years ended December 31, 2022 and 2021, respectively.

As of December 31, 2022, the estimated undiscounted future cash outlay for asset retirement obligations was $4.2 billion.

11. 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:


			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.

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:


	December 31, 2022					December 31, 2021
	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	—		—		—	—		$	11.0	—
Investments in equity securities (1)	$	29.2	—		—	$	37.1	—		—
Liabilities:
Interest rate swap agreements	—		$	6.2	—	—		—		—
Fair value of debt related to interest rate swap agreements (2)	$	(4.9)	—		—	$	12.2	—		—

F-37

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

(1) Investments in equity securities are recorded in Notes receivable and other non-current assets in the consolidated balance sheet at fair value. Unrealized holding gains and losses for equity securities are recorded in Other income (expense) in the consolidated statements of operations in the current period. During the years ended December 31, 2022 and 2021, the Company recognized unrealized (losses) gains of $(16.7) million and $6.1 million, respectively, for equity securities held as of December 31, 2022.

(2) Included in the carrying values of the corresponding debt obligations.

Interest Rate Swap Agreements

The fair value of the Company’s interest rate swap agreements is determined using pricing models with inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. For derivative instruments that are designated and qualify as fair value hedges, changes in the value of the derivatives are recognized in the consolidated statements of operations in the current period, along with the offsetting gain or loss on the hedged item attributable to the hedged risk. For derivative instruments that are designated and qualify as cash flow hedges, the Company records the change in fair value for the effective portion of the cash flow hedges in AOCL in the consolidated balance sheets and reclassifies a portion of the value from AOCL into Interest expense on a quarterly basis as the cash flows from the hedged item affects earnings. The Company records the settlement of interest rate swap agreements in (Loss) gain on retirement of long-term obligations in the consolidated statements of operations in the period in which the settlement occurs.

The Company entered into three interest rate swap agreements with an aggregate notional value of $500.0 million related to the 3.000% senior unsecured notes due 2023 (the “3.000% Notes”). These interest rate swaps, which were designated as fair value hedges at inception, were entered into to hedge against changes in fair value of the 3.000% Notes resulting from changes in interest rates. The interest rate swap agreements require the Company to pay interest at a variable interest rate of one-month LIBOR plus applicable spreads and to receive fixed interest at a rate of 3.000% through June 15, 2023.

The Company entered into three interest rate swap agreements with an aggregate notional value of $600.0 million related to the 2.250% Notes. These interest rate swaps, which were designated as fair value hedges at inception, were entered into to hedge against changes in fair value of the 2.250% Notes resulting from changes in interest rates. The interest rate swap agreements required the Company to pay interest at a variable interest rate of one-month LIBOR plus applicable spreads and to receive fixed interest at a rate of 2.250% through January 15, 2022. The interest rate swap agreements expired upon repayment of the 2.250% Notes in full on January 14, 2022 upon maturity. As of December 31, 2022, there were no amounts outstanding under the interest rate swap agreements under the 2.250% Notes.

The fair value of the U.S. interest rate swap liability of $6.2 million was included in accrued expenses on the consolidated balance sheets at December 31, 2022. The fair value of the U.S. interest rate swap asset of $11.0 million was included in Other non-current assets on the consolidated balance sheets at December 31, 2021. During the year ended December 31, 2022, the Company recorded net fair value adjustments of $(0.1) million related to interest rate swaps and the change in fair value of debt due to interest rate swaps in Other expense in the consolidated statements of operations.

Items Measured at Fair Value on a Nonrecurring Basis

Assets Held and Used—The Company’s long-lived assets are recorded at amortized cost and, if impaired, are adjusted to fair value using Level 3 inputs.

During the year ended December 31, 2022, certain long-lived assets held and used with a carrying value of $46.1 billion were written down to their net realizable value as a result of an asset impairment charge of $655.9 million. During the year ended December 31, 2021, certain long-lived assets held and used with a carrying value of $49.0 billion were written down to their net realizable value as a result of an asset impairment charge of $173.7 million. The asset impairment charges are recorded in Other operating expenses in the accompanying consolidated statements of operations. These adjustments were determined by comparing the estimated fair value utilizing projected future discounted cash flows to be provided from the long-lived assets to the asset’s carrying value.

There were no other items measured at fair value on a nonrecurring basis during the year ended December 31, 2022.

Fair Value of Financial Instruments—The Company’s financial instruments for which the carrying value reasonably approximates fair value at December 31, 2022 and 2021 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 December 31, 2022, the carrying value and fair value of long-term obligations, including the current portion, were $38.7 billion and $35.1 billion, respectively, of which $24.5 billion was measured using Level 1 inputs and $10.6 billion was measured using

F-38

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Level 2 inputs. As of December 31, 2021, the carrying value and fair value of long-term obligations, including the current portion, were $43.3 billion and $44.1 billion, respectively, of which $28.5 billion was measured using Level 1 inputs and $15.6 billion was measured using Level 2 inputs.

12. INCOME TAXES

Beginning in the taxable year ended December 31, 2012, the Company has filed, and intends to continue to file, U.S. federal income tax returns as a REIT, and its domestic TRSs filed, and intend to continue to file, separate tax returns as required. The Company also files tax returns in various states and countries. The Company’s state tax returns reflect different combinations of the Company’s subsidiaries and are dependent on the connection each subsidiary has with a particular state and form of organization. The following information pertains to the Company’s income taxes on a consolidated basis.

The income tax provision from continuing operations consisted of the following:


	Year Ended December 31,
2022			2021			2020
Current:
Federal	$	(6.5)		$	(26.0)		$	8.7
State	(5.8)			(9.3)			(10.7)
Foreign	(248.4)			(267.7)			(150.1)
Deferred:
Federal	(2.8)			0.0			(1.0)
State	0.8			(2.5)			(1.0)
Foreign	238.7			43.7			24.5
Income tax provision	$	(24.0)		$	(261.8)		$	(129.6)

The effective tax rate (“ETR”) on income from continuing operations for the years ended December 31, 2022, 2021 and 2020 differs from the federal statutory rate primarily due to the Company’s qualification for taxation as a REIT, as well as adjustments for state and foreign items. As a REIT, the Company may deduct earnings distributed to stockholders against the income generated by its REIT operations.

For the year ended December 31, 2022, the change in the income tax provision was primarily attributable to a reduction in taxable income due to impairment charges in India and the release of valuation allowances in certain jurisdictions. The decrease in the income tax provision for the year ended December 31, 2022 included the reversal of valuation allowances of $76.5 million in certain jurisdictions, as compared to a reversal of $26.2 million for the year ended December 31, 2021. These valuation allowance reversals were recognized as a reduction to the income tax provision as the net related deferred tax assets were deemed realizable based on changes in facts and circumstances relevant to the assets’ recoverability.

Reconciliation between the U.S. statutory rate and the effective rate from continuing operations is as follows:


	Year Ended December 31,
2022			2021			2020
Statutory tax rate	21	%		21	%		21	%
Adjustment to reflect REIT status (1)	(21)			(21)			(21)

Foreign taxes	(1)			3			4
Foreign withholding taxes	4			2			3
Uncertain tax positions	2			4			1


Changes in valuation allowance	(4)			(0)			(1)
Effective tax rate	1	%		9	%		7%

(1) As a result of the ability to utilize the dividends paid deduction to offset the Company’s REIT income and gains.

F-39

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

The domestic and foreign components of income from continuing operations before income taxes are as follows:


	Year Ended December 31,
2022			2021			2020
United States	$	1,973.2		$	2,517.4		$	1,683.0
Foreign	(252.5)			312.0			138.1
Total	$	1,720.7		$	2,829.4		$	1,821.1

The components of the net deferred tax asset and liability and related valuation allowance were as follows:


	December 31, 2022		December 31, 2021
Assets:
Operating lease liability	$	1,117.4	$	1,171.8
Net operating loss carryforwards	265.5		270.1
Accrued asset retirement obligations	238.5		228.0
Stock-based compensation	8.1		7.0
Unearned revenue	32.7		36.7
Unrealized loss on foreign currency	24.4		22.0
Other accruals and allowances	84.1		90.1
Nondeductible interest	93.4		76.2
Tax credits	106.8		82.4
Items not currently deductible and other	50.1		45.4
Liabilities:
Depreciation and amortization	(1,792.6)		(2,128.2)
Right-of-use asset	(1,118.5)		(1,160.7)
Deferred rent	(113.0)		(108.1)

Other	(24.0)		(2.7)
Subtotal	(1,027.1)		(1,370.0)
Valuation allowance	(335.7)		(329.3)
Net deferred tax liabilities	$	(1,362.8)	$	(1,699.3)

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. Valuation allowances may be reversed if, based on changes in facts and circumstances, the net deferred tax assets have been determined to be realizable.

At December 31, 2022 and 2021, the Company has provided a valuation allowance of $335.7 million and $329.3 million, respectively, which primarily relates to foreign items. The increase in the valuation allowance for the year ending December 31, 2022 is due to uncertainty as to the timing of, and the Company’s ability to recover, net deferred tax assets in certain foreign operations in the foreseeable future, offset by reversals and fluctuations in foreign currency exchange rates. The amount of deferred tax assets considered realizable, however, could be adjusted if objective evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as the Company’s projections for growth.

A summary of the activity in the valuation allowance is as follows:


	2022		2021		2020
Balance as of January 1,	$	329.3	$	228.5	$	194.2
Additions (1)	93.9		146.3		64.7
Usage, expiration and reversals	(76.5)		(26.2)		(22.0)
Foreign currency translation	(11.0)		(19.3)		(8.4)
Balance as of December 31,	$	335.7	$	329.3	$	228.5

(1) Includes net charges to expense and allowances established due to acquisition.

F-40

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

The recoverability of the Company’s deferred tax assets has been assessed utilizing projections based on its current operations. Accordingly, the recoverability of the deferred tax assets is not dependent on material asset sales or other non-routine transactions. Based on its current outlook of future taxable income during the carryforward period, the Company believes that deferred tax assets, other than those for which a valuation allowance has been recorded, will be realized.

At December 31, 2022, the Company had net federal, state and foreign operating loss carryforwards available to reduce future taxable income. If not utilized, the Company’s NOLs expire as follows:


Years ended December 31,	Federal		State		Foreign
2023 to 2027	$	0.0	$	185.0	$	5.1
2028 to 2032	0.1		97.5		22.4
2033 to 2037	67.5		90.4		1.5
2038 to 2042	—		100.0		10.0
Indefinite carryforward	241.1		51.7		917.2
Total	$	308.7	$	524.6	$	956.2

As of December 31, 2022 and 2021, the total amount of unrecognized tax benefits that would impact the ETR, if recognized, is $103.6 million and $94.8 million, respectively. The amount of unrecognized tax benefits for the year ended December 31, 2022 includes additions to the Company’s existing tax positions of $35.1 million.

The Company expects the unrecognized tax benefits to change over the next 12 months if certain tax matters ultimately settle with the applicable taxing jurisdiction during this timeframe, or if the applicable statute of limitations lapses. The impact of the amount of such changes to previously recorded uncertain tax positions could range from zero to $18.0 million.

A reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows:


	Year Ended December 31,
2022			2021			2020
Balance at January 1	$	108.8		$	136.2		$	175.6
Additions based on tax positions related to the current year	13.3			7.5			4.7
Additions and reductions for tax positions of prior years (1) (2)	18.2			(17.5)			(5.0)

Foreign currency	(5.3)			(3.7)			(9.6)
Reduction as a result of the lapse of statute of limitations	(0.6)			(4.9)			(26.0)
Reduction as a result of effective settlements	(18.9)			(8.8)			(3.5)
Balance at December 31	$	115.5		$	108.8		$	136.2

(1) Year ended December 31, 2021 includes adjustments of $(16.6) million due to a reclassification of unrecognized tax benefits to penalties and income tax-related interest expense.

(2) Year ended December 31, 2020 includes adjustments of $(21.0) million for positions related to the Eaton Towers Acquisition that were revised in connection with settlements or effective settlements.

During the year ended December 31, 2022, the statute of limitations on certain unrecognized tax benefits lapsed and certain positions were effectively settled, including effective settlements and revisions of prior year positions, which resulted in a decrease of $23.1 million in the liability for unrecognized tax benefits. During the year ended December 31, 2021, the statute of limitations on certain unrecognized tax benefits lapsed and certain positions were effectively settled, including effective settlements and revisions of prior year positions, which resulted in a decrease of $54.2 million in the liability for unrecognized tax benefits. During the year ended December 31, 2020, the statute of limitations on certain unrecognized tax benefits lapsed and certain positions were effectively settled, including effective settlements and revisions of prior year positions related to the Eaton Towers Acquisition, which resulted in a decrease in the liability for unrecognized tax benefits of $50.5 million.

The Company recorded penalties and tax-related interest expense to the tax provision of $20.6 million, $69.5 million and $16.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. During the year ended December 31, 2022, the Company reduced its liability for penalties and income tax-related interest expense related to uncertain tax positions by $19.9 million due to the expiration of the statute of limitations in certain jurisdictions and certain positions that were effectively settled. During the years ended December 31, 2021 and 2020, the Company reduced its liability for penalties and income tax-related interest expense related to uncertain tax positions by $14.6 million and $4.8 million, respectively, due to the expiration

F-41

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

of the statute of limitations in certain jurisdictions and certain positions that were effectively settled. In addition, as a result of a settlement in the United States, $45.8 million was reclassified to Accrued income tax payable as of December 31, 2021.

As of December 31, 2022 and 2021, the total amount of accrued income tax-related interest and penalties included in the consolidated balance sheets were $43.3 million and $42.3 million, respectively.

The Company has filed for prior taxable years, and for its taxable year ended December 31, 2022 will file, numerous consolidated and separate income tax returns, including U.S. federal and state tax returns and foreign tax returns. The Company is subject to examination in the United States and various state and foreign jurisdictions for certain tax years. As a result of the Company’s ability to carryforward federal, state and foreign NOLs, the applicable tax years generally remain open to examination several years after the applicable loss carryforwards have been used or have expired. The Company regularly assesses the likelihood of additional assessments in each of the tax jurisdictions resulting from these examinations. The Company believes that adequate provisions have been made for income taxes for all periods through December 31, 2022.

13. 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 Company’s 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 RSUs and stock options and three years for PSUs. Stock options generally expire 10 years from the date of grant. As of December 31, 2022, the Company had the ability to grant stock-based awards with respect to an aggregate of 5.2 million shares of common stock under the 2007 Plan. In connection with the CoreSite Acquisition, the Company assumed the remaining shares previously available for issuance under a plan approved by the CoreSite shareholders, which converted into 1.4 million shares of the Company’s common stock. These shares will be available for issuance under the 2007 Plan, however, will only be available for grants to certain employees and will not be available for issuance beyond the period when they would have been available under the CoreSite plan, or March 20, 2023, at which time they will no longer be available for grant. 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 years ended December 31, 2022, 2021 and 2020, the Company recorded the following stock-based compensation expenses:


			2022 (1)						2021 (1)						2020 (2)
Stock-based compensation expense			$	169.3					$	119.5					$	120.8

(1)For the years ended December 31, 2022 and 2021, stock-based compensation expense is included in selling, general, administrative and development expense.

(2)For the year ended December 31, 2020, stock-based compensation expense consisted of (i) $1.9 million included in Property costs of operations, (ii) $1.1 million included in Services costs of operations and (iii) $117.8 million included in selling, general, administrative and development expense. For the year ended December 31, 2020, stock-based compensation expense capitalized as property and equipment was $1.7 million.

Stock Options—There were no options granted during the years ended December 31, 2022, 2021 and 2020. The fair values of previously granted stock options were estimated on the date of grant using the Black-Scholes option pricing model based on the assumptions at the date of grant.

The intrinsic value of stock options exercised during the years ended December 31, 2022, 2021 and 2020 was $34.3 million, $176.7 million and $176.3 million, respectively. As of December 31, 2022, there was no unrecognized compensation expense related to unvested stock options. The amount of cash received from the exercise of stock options was $17.1 million during the year ended December 31, 2022.

F-42

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

The Company’s option activity for the year ended December 31, 2022 was as follows (share and per share data disclosed in full amounts):


	Options	Weighted Average Exercise Price Per Share	Weighted Average Remaining Life (Years)	Aggregate Intrinsic Value
Outstanding as of January 1, 2022	1,067,999	$89.57
Granted	—	—
Exercised	(212,845)	80.53
Forfeited	—	—
Expired	—	—
Outstanding as of December 31, 2022	855,154	$91.82	2.32	$102.7
Exercisable as of December 31, 2022	855,154	$91.82	2.32	$102.7
Vested as of December 31, 2022	855,154	$91.82	2.32	$102.7

The following table sets forth information regarding options outstanding at December 31, 2022 (share and per share data disclosed in full amounts):


Options Outstanding					Options Exercisable
Range of Exercise Price Per Share	Outstanding Number of Options	Weighted Average Exercise Price Per Share		Weighted Average Remaining Life (Years)	Options Exercisable	Weighted Average Exercise Price Per Share

$76.90 - $76.90	11,101	$	76.90	0.19	11,101	$	76.90
$81.18 - $94.23	193,886	81.61		1.26	193,886	81.61
$94.57 - $94.71	634,180	94.63		2.64	634,180	94.63
$99.67 - $121.15	15,987	114.25		3.71	15,987	114.25
$76.90 - $121.15	855,154	$	91.82	2.32	855,154	$	91.82

Restricted Stock Units and Performance-Based Restricted Stock Units—The Company’s RSU and PSU activity for the year ended December 31, 2022 was as follows (share and per share data disclosed in full amounts):


	RSUs	Weighted Average Grant Date Fair Value		PSUs	Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2022 (1) (2)	1,298,178	$	213.35	267,621	$	208.44
Granted (3)	715,093	242.76		107,035	233.49

Vested and Released (4)	(553,181)	205.03		(98,188)	185.16
Forfeited	(77,211)	232.83		—	—
Outstanding as of December 31, 2022	1,382,879	$	230.80	276,468	$	226.40
Expected to vest as of December 31, 2022	1,382,879	$	230.80	276,468	$	226.40

(1)RSUs include 125,841 shares of the CoreSite Replacement Awards.

(2)PSUs consist of the target number of shares issuable at the end of the three-year performance period for the 2021 PSUs and the 2020 PSUs (each as defined below), or 98,694 and 70,739 shares, respectively, and the shares issuable at the end of the three-year vesting period for the PSUs granted in 2019 (the “2019 PSUs”), based on achievement against the performance metrics for the three-year performance period, or 98,188 shares.

(3)PSUs consist of the target number of shares issuable at the end of the three-year performance period for the 2022 PSUs, or 98,542 shares. PSUs also includes the shares above target that are issuable for the 2020 PSUs at the end of the three-year performance cycle based on exceeding the performance metric for the three-year performance period, or 8,493 shares.

(4)Includes 17,121 shares of previously vested and deferred RSUs. PSUs consist of shares vested pursuant to the 2019 PSUs. There are no additional shares to be earned related to the 2019 PSU.

The total fair value of RSUs and PSUs that vested during the year ended December 31, 2022 was $153.1 million.

*Restricted Stock Units—*As of December 31, 2022, total unrecognized compensation expense related to unvested RSUs granted under the 2007 Plan, including the CoreSite Replacement Awards, was $170.9 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). In December 2021, in connection with the CoreSite Acquisition, the Company assumed and converted certain equity awards previously

F-43

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

granted by CoreSite under its equity plan into corresponding CoreSite Replacement Awards. As of December 31, 2022, total unrecognized compensation expense related to the CoreSite Replacement Awards was $6.5 million and is expected to be recognized over a weighted average period of approximately one year.

*Performance-Based Restricted Stock Units—*During the year ended December 31, 2022, the Company’s Compensation Committee (the “Compensation Committee”) granted an aggregate of 98,542 PSUs (the “2022 PSUs”) to its executive officers and established the performance metrics for these awards. During the years ended December 31, 2021 and 2020, the Company’s Compensation Committee granted an aggregate of 98,694 PSUs (the “2021 PSUs”), 110,925 PSUs (the “2020 PSUs”), respectively, to its executive officers and established the performance metrics for these awards. During the year ended December 31, 2020, in connection with the retirement of the Company’s former Chief Executive Officer, an aggregate of 40,186 shares underlying the 2020 PSUs were forfeited, which included the target number of shares issuable at the end of the three-year performance period for such executive’s 2020 PSUs.

Threshold, target and maximum parameters were established for the metrics for a three-year performance period with respect to each of the 2022 PSUs, the 2021 PSUs and the 2020 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 three-year performance period, the number of shares that vest will depend on the degree of achievement against the pre-established performance goals. PSUs will be paid out in common stock at the end of 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.

During the year ended December 31, 2022, the Company recorded $28.9 million 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 December 31, 2022 was $6.3 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.

14. EQUITY

Dividends—The Company may pay dividends in cash or, subject to certain limitations, in shares of common stock or any combination of cash and shares of common stock.

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 year ended December 31, 2022, the Company received an aggregate of $32.4 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 from any issuances under 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 December 31, 2022, the Company has not sold any shares of common stock under the 2020 ATM Program.

Common Stock Offering—On June 7, 2022, the Company completed a registered public offering of 9,185,000 shares of its common stock, par value $0.01 per share, (which includes the full exercise of the underwriters’ over-allotment option) at $256.00 per share. Aggregate net proceeds from this offering were approximately $2.3 billion after deducting underwriting discounts and estimated offering expenses. The Company used the net proceeds to repay existing indebtedness under the 2021 USD 364-Day Delayed Draw Term Loan.

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 year ended December 31, 2022, the Company repurchased 90,042 shares of its common stock under the 2011 Buyback for an aggregate of $18.8 million, including commissions and fees. As of December 31, 2022, the Company has

F-44

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

repurchased a total of 14,451,325 shares of its common stock under the 2011 Buyback for an aggregate of $1.5 billion, including commissions and fees. There were no repurchases under the 2017 Buyback.

Under the Buyback Programs, the Company is authorized to purchase shares from time to time through open market purchases or in privately negotiated transactions not to exceed market prices and subject to market conditions and other factors. With respect to open market purchases, the Company may use plans adopted in accordance with Rule 10b5-1 under the Exchange Act in accordance with securities laws and other legal requirements, which allows the Company to repurchase shares during periods when it may otherwise be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods.

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 years ended December 31, 2022, 2021 and 2020, the Company declared the following cash distributions (per share data reflects actual amounts):


	For the year ended December 31,
	2022				2021				2020
	Distribution per share		Aggregate Payment Amount		Distribution per share		Aggregate Payment Amount		Distribution per share		Aggregate Payment Amount
Common Stock	$	5.86	$	2,715.3	$	5.21	$	2,359.4	$	4.53	$	2,010.7

The following table characterizes the tax treatment of distributions declared per share of common stock.


		For the year ended December 31,
		2022					2021					2020
		Per Share			%		Per Share			%		Per Share			%
Common Stock
	Ordinary dividend	$	4.3000		100.00	%	$	6.1980		96.54	%	$	3.3200		100.00	%
	Capital gains distribution	—			—		0.2220			3.46		—			—
	Total	$	4.3000	(1)	100.00	%	$	6.4200	(2)	100.00	%	$	3.3200	(3)	100.00	%

(1) Excludes dividend declared on December 7, 2022 of $1.56 per share, which was paid on February 2, 2023 to common stockholders of record at the close of business on December 28, 2022 and which will apply to the 2023 tax year.

(2) Includes dividend declared on December 15, 2021 of $1.39 per share, which was paid on January 14, 2022 to common stockholders of record at the close of business on December 27, 2021. Also includes dividend declared on December 3, 2020 of $1.21 per share, which was paid on February 2, 2021 to common stockholders of record at the close of business on December 28, 2020 and which applied to the 2021 tax year.

(3) Excludes dividend declared on December 3, 2020 of $1.21 per share, which was paid on February 2, 2021 to common stockholders of record at the close of business on December 28, 2020 and which applied to the 2021 tax year.

The Company accrues distributions on unvested restricted stock units, which are payable upon vesting. The amount accrued for distributions payable related to unvested restricted stock units was $17.0 million and $12.8 million as of December 31, 2022 and 2021, respectively. During the year ended December 31, 2022, the Company paid $6.9 million of distributions upon the vesting of restricted stock units. To maintain its qualification for taxation as a REIT, the Company expects to continue paying distributions, the amount, timing and frequency of which will be determined, and subject to adjustment, by the Company’s Board of Directors.

15. NONCONTROLLING INTERESTS

Purchase of Interests—In March 2021, the Company purchased the remaining minority interests held in a subsidiary in the United States for total consideration of $6.0 million. The purchase price was settled with unregistered shares of the Company’s common stock, in lieu of cash. The Company now owns 100% of the subsidiary as a result of the purchase.

Reorganization of European Interests—In June 2021, in connection with the funding of the Telxius Acquisition, the Company completed a reorganization of its subsidiaries in Europe. As part of the reorganization, PGGM converted its previously held 49% noncontrolling interest in Former ATC Europe into noncontrolling interests in new subsidiaries, consisting of the Company's operations in Germany and Spain, inclusive of the assets acquired pursuant to the Telxius Acquisition. The reorganization included cash consideration paid to PGGM of 178.0 million EUR (approximately $214.9 million). The

F-45

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

reorganization is reflected in the consolidated statements of equity as (i) a reduction in Additional Paid-in Capital of $648.4 million and (ii) an increase in Noncontrolling Interests of $601.0 million, and in the consolidated statements of comprehensive income (loss) as an increase in Comprehensive income attributable to American Tower Corporation stockholders of $47.4 million.

CDPQ and Allianz Partnerships—In May and June 2021, the Company entered into agreements with Caisse de dépôt et placement du Québec (“CDPQ”) and Allianz insurance companies and funds managed by Allianz Capital Partners GmbH, including the Allianz European Infrastructure Fund (collectively, “Allianz”), for CDPQ and Allianz to acquire 30% and 18% noncontrolling interests, respectively, in ATC Europe (the “ATC Europe Transactions”). The Company completed the ATC Europe Transactions in September 2021 for total aggregate consideration of 2.6 billion EUR (approximately $3.1 billion at the date of closing). After the completion of the ATC Europe Transactions, the Company holds a 52% controlling ownership interest in ATC Europe.

As of December 31, 2022, ATC Europe consists of the Company’s operations in France, Germany, Poland and Spain. The Company currently holds a 52% controlling interest in ATC Europe, with CDPQ and Allianz holding 30% and 18% noncontrolling interests, respectively. ATC Europe holds a 100% interest in the subsidiaries that consist of the Company’s operations in France and Poland and an 87% and an 83% controlling interest in the subsidiaries that consist of the Company’s operations in Germany and Spain, respectively, with PGGM holding a 13% and a 17% noncontrolling interest in each respective subsidiary.

Bangladesh Partnership—In August 2021, the Company acquired a 51% controlling interest in in Kirtonkhola Tower Bangladesh Limited (“KTBL”) for 900 million BDT (approximately $10.6 million at the date of closing). Confidence Group holds a 49% noncontrolling interest in KTBL.

Stonepeak Transaction—In July 2022, in connection with the funding of the CoreSite Acquisition, the Company entered into an agreement pursuant to which certain investment vehicles affiliated with Stonepeak Partners LP (such investment vehicles, collectively, “Stonepeak”) acquired a noncontrolling ownership interest in the Company’s U.S. data center business. The transaction was completed in August 2022 for total aggregate consideration of $2.5 billion, through an investment in common equity of $1,750.0 million and mandatorily convertible preferred equity of $750.0 million. In October 2022, the Company entered into an agreement with Stonepeak for Stonepeak to acquire additional common equity and mandatorily preferred equity interests in the Company’s U.S. data center business for total aggregate consideration of $570.0 million. The transaction was completed in October 2022 (together with the August 2022 closing, the “Stonepeak Transaction”).

As of December 31, 2022, the Company holds a common equity interest of approximately 72% in its U.S. data center business, with Stonepeak holding approximately 28% of the outstanding common equity and 100% of the outstanding mandatorily convertible preferred equity. On a fully converted basis, which is expected to occur four years from the date of the initial closing in August 2022, and on the basis of the currently outstanding equity, the Company will hold a controlling ownership interest of approximately 64%, with Stonepeak holding approximately 36%. The mandatorily convertible preferred equity, which accrues dividends at 5.0%, will convert into common equity on a one for one basis, subject to adjustment that will be measured on the conversion date.

Dividends to noncontrolling interests—Certain of the Company’s subsidiaries may, from time to time, declare dividends. In December 2021, AT Iberia C.V., one of the Company’s subsidiaries in Spain, declared a dividend of 14.0 million EUR (approximately $15.9 million) payable, pursuant to the terms of the ownership agreements, to ATC Europe and PGGM in proportion to their respective equity interests in AT Iberia C.V.

In August 2022, AT Rhine C.V., one of the Company’s subsidiaries in Germany, declared and paid a dividend of 25.0 million EUR (approximately $25.1 million at the date of payment), pursuant to the terms of the ownership agreements, to ATC Europe and PGGM in proportion to their respective equity interests in AT Rhine C.V.

In November 2022, AT Iberia C.V. declared and paid a dividend of 14.0 million EUR (approximately $14.6 million at the date of payment), pursuant to the terms of the ownership agreements, to ATC Europe and PGGM in proportion to their respective equity interests in AT Iberia C.V.

As of December 31, 2022, the amount accrued for distributions payable related to the outstanding Stonepeak mandatorily convertible preferred equity was $11.2 million.

F-46

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

The changes in noncontrolling interests were as follows:


	Year Ended December 31,
	2022		2021
Balance as of January 1,	$	3,988.4	$	474.9
ATC Europe Transactions (1)	—		3,078.2
Bangladesh partnership (2)	—		10.2
Stonepeak Transaction (3)	3,070.0		—
Adjustment to noncontrolling interest due to reorganization (4)	—		601.0
Redemption of noncontrolling interest (5)	—		(1.7)
Net loss attributable to noncontrolling interests (6)	(69.1)		(7.7)
Foreign currency translation adjustment attributable to noncontrolling interests, net of tax	(185.6)		(163.4)
Contributions from noncontrolling interest holders	55.4		—
Distributions to noncontrolling interest holders (6)	(23.0)		(3.1)
Balance as of December 31,	$	6,836.1	$	3,988.4

(1) Represents the impact of contributions received from CDPQ and Allianz described above on Noncontrolling interests. Reflected within Contributions from noncontrolling interest holders in the consolidated statements of equity.

(2) Represents the impact of contributions made by the Company to establish the joint venture in Bangladesh described above on Noncontrolling interests. Reflected within Purchase of noncontrolling interest in the consolidated statements of equity.

(3) Represents the impact of contributions received from Stonepeak described above on Noncontrolling interests. Reflected within Contributions from noncontrolling interest holders in the consolidated statements of equity.

(4) Represents the impact of the reorganization of European interests described above on Noncontrolling interests.

(5) Represents the impact of the purchase of interests described above on Noncontrolling interests.

(6) For the year ended December 31, 2022, includes $16.7 million of distributions related to the outstanding Stonepeak mandatorily convertible preferred equity and dividends of $5.5 million paid to PGGM.

16. OTHER OPERATING EXPENSE

Other operating expense consists primarily of impairment charges, net losses on sales or disposals of assets and other operating expense items. The Company records impairment charges to write down certain assets to their net realizable value after an indicator of impairment is identified and subsequent analysis determines that the asset is either partially recoverable or not recoverable. These assets consist primarily of those related to the Company’s tower locations, and included towers and related assets included in property and equipment, network location intangible assets and right-of-use assets, all of which are typically assessed on an individual location or site basis. The assets subject to impairment also include tenant-related intangibles, which are assessed on a tenant basis. Net losses on sales or disposals of assets primarily relate to certain non-core towers, other assets and miscellaneous items. Other operating expenses includes acquisition-related costs and integration costs.

Other operating expenses included the following for the years ended December 31,:


	2022		2021		2020
Impairment charges (1)	$	655.9	$	173.7	$	222.8
Net losses on sales or disposals of assets	28.4		22.7		17.3
Other operating expenses (2)	83.3		202.3		25.7
Total Other operating expenses	$	767.6	$	398.7	$	265.8

(1) For the year ended December 31, 2022, impairment charges primarily relate to India, as discussed below.

(2) For the year ended December 31, 2021, Other operating expenses includes acquisition and merger related expenses associated with the Telxius Acquisition and the CoreSite Acquisition. For the year ended December 31, 2020, Other operating expenses includes an $11.9 million benefit in Brazil.

F-47

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Impairment charges included the following for the years ended December 31,:


	2022		2021		2020

Tower and network location intangible assets (1)	$	149.6	$	121.0	$	142.4
Tenant relationships (2)	491.1		42.2		—
Right-of-use assets	8.1		3.3		76.1
Other	7.1		7.2		4.3
Total impairment charges	$	655.9	$	173.7	$	222.8

(1) During the year ended December 31, 2022, impairment charges primarily relate to India, as discussed below.

(2) During the year ended December 31, 2022, impairment charges primarily relate to India, as discussed below, and impaired tenant relationships related to fiber in Mexico. During the year ended December 31, 2021, impairment charges relate to a fully impaired tenant relationship in Africa.

India Impairments

The Company reviews long-lived assets for impairment annually (as of December 31) or whenever events or circumstances indicate the carrying amount of an assets may not be recoverable, as further discussed in note 1.

In the third quarter of 2022, the Company’s largest customer in India, Vodafone Idea Limited (“VIL”), communicated that it would make partial payments of its contractual amounts owed to the Company and indicated that it would continue to make partial payments for the remainder of 2022. In late 2022, VIL had communicated its intent to resume payments in full under its contractual obligations owed to the Company beginning on January 1, 2023. However, in early 2023, VIL communicated that it would not be able to resume payments in full of its contractual obligations owed to the Company, and that it would instead continue to make partial payments.

The Company considered these recent developments and the uncertainty with respect to amounts owed under its tenant leases when conducting its annual impairment assessments for long-lived assets in India. A probability weighted assessment was performed, incorporating current and expected industry and market conditions and trends and, as a result, the Company determined that certain fixed and intangible assets had been impaired during the year ended December 31, 2022.

An impairment of $97.0 million was taken on tower and network location intangible assets in India.
The Company also impaired the tenant-related intangible assets for VIL, which resulted in an impairment of $411.6 million.

F-48

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

17. EARNINGS PER COMMON SHARE

The following table sets forth basic and diluted net income per common share computational data for the years ended December 31, (shares in thousands, except per share data):


	2022		2021		2020


Net income attributable to American Tower Corporation common stockholders	$	1,765.8	$	2,567.7	$	1,690.6

Basic weighted average common shares outstanding	461,519		451,498		443,640
Dilutive securities	1,231		1,796		2,464
Diluted weighted average common shares outstanding	462,750		453,294		446,104
Basic net income attributable to American Tower Corporation common stockholders per common share	$	3.83	$	5.69	$	3.81
Diluted net income attributable to American Tower Corporation common stockholders per common share	$	3.82	$	5.66	$	3.79

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 for the years ended December 31, (in thousands, on a weighted average basis):


	2022	2021	2020
Restricted stock awards	86	—	1

18. 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 communications sites at the inception of the agreement was approximately 28 years, assuming renewals or extensions of the underlying ground leases for the sites. The Company has the option to purchase the leased sites in tranches, subject to the applicable lease, sublease or management rights upon its scheduled expiration. Each tower is assigned to an annual tranche, ranging from 2034 to 2047, which represents the outside expiration date for the sublease rights to the towers in that tranche. The purchase price for each tranche is a fixed amount stated in the lease for such tranche plus the fair market value of certain alterations made to the related towers. The aggregate purchase option price for the towers leased and subleased is approximately $5.0 billion. Verizon will occupy the sites as a tenant for an initial term of ten years with eight optional successive five-year terms; each such term shall be governed by standard master lease agreement terms established as a part of the transaction.

AT&T Transaction—The Company has an agreement with SBC Communications Inc., a predecessor entity to AT&T Inc. (“AT&T”), that currently provides for the lease or sublease of approximately 1,900 towers commencing between December 2000 and August 2004. Substantially all of the towers are part of the Trust Securitizations. 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 December 31, 2022, the Company has purchased an aggregate of more than 500 of the subleased towers which are subject to the applicable agreement, including 143 towers purchased during the year ended December 31, 2022 for an aggregate purchase price of $93.2 million. The aggregate purchase option price for the remaining towers leased and subleased is $1.0 billion 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 five-year terms.

F-49

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Other Contingencies—The Company is subject to income tax and other taxes in the geographic areas where it holds assets or 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.

Guaranties and Indemnifications—The Company enters into agreements from time to time in the ordinary course of business pursuant to which it agrees to guarantee or indemnify third parties for certain claims. The Company has also entered into purchase and sale agreements relating to the sale or acquisition of assets containing customary indemnification provisions. The Company’s indemnification obligations under these agreements generally are limited solely to damages resulting from breaches of representations and warranties or covenants under the applicable agreements. In addition, payments under such indemnification clauses are generally conditioned on the other party making a claim that is subject to whatever defenses the Company may have and are governed by dispute resolution procedures specified in the particular agreement. Further, the Company’s obligations under these agreements may be limited in duration and amount, and in some instances, the Company may have recourse against third parties for payments made by the Company. The Company has not historically made any material payments under these agreements and, as of December 31, 2022, is not aware of any agreements that could result in a material payment.

19. SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information and non-cash investing and financing activities are as follows for the years ended December 31,:


	2022		2021		2020
Supplemental cash flow information:
Cash paid for interest	$	1,088.6	$	791.2	$	762.3
Cash paid for income taxes (net of refunds of $33.9, $46.7 and $27.0, respectively)	322.3		225.2		146.3
Non-cash investing and financing activities:
Increase in accounts payable and accrued expenses for purchases of property and equipment and construction activities	27.2		57.9		45.8
Purchases of property and equipment under finance leases, perpetual easements and capital leases	33.6		58.8		75.0
Fair value of debt assumed through acquisitions (1)	—		955.1		800.0
Settlement of third-party debt	(7.4)		(12.7)		(5.0)
Replacement awards (2)	—		17.1		—

(1) For the year ended December 31, 2021, consists of the CoreSite Debt. For the year ended December 31, 2020, consists of the InSite Debt.

(2) For the year ended December 31, 2021, consists of CoreSite Acquisition purchase consideration related to CoreSite Replacement Awards.

20. BUSINESS SEGMENTS

Property

Communications Sites and Related Communications Infrastructure—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. The Company has historically reported these operations on a geographic basis.

Data Centers—The Company’s Data Centers segment relates to data center facilities and related assets that the Company owns and operates in the United States. The Data Centers segment offers different services from, and requires different resources, skill sets and marketing strategies than the existing property operating segment in the U.S. & Canada.

As of December 31, 2022, the Company’s property operations consisted of the following:

U.S. & Canada: property operations in Canada and the United States;

F-50

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Asia-Pacific: property operations in Australia, Bangladesh, India, New Zealand and the Philippines;
Africa: property operations in Burkina Faso, Ghana, Kenya, Niger, Nigeria, South Africa and Uganda;
Europe: property operations in France, Germany, Poland and Spain;
Latin America: property operations in Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, Paraguay and Peru; and
Data Centers: data center property operations in the United States.

Services—The Company’s Services segment offers tower-related services in the United States, including AZP, structural analysis and construction management, which primarily support its site leasing business, including the addition of new tenants and equipment on its communications 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. 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 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 years ended December 31, 2022, 2021 and 2020 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.


	Property												Total Property		Services		Other		Total
Year ended December 31, 2022	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers
Segment revenues	$	5,006.3	$	1,077.0	$	1,192.5	$	735.7	$	1,691.9	$	766.6	$	10,470.0	$	241.1			$	10,711.1
Segment operating expenses	845.4		697.6		445.1		319.6		526.7		322.0		3,156.4		107.4				3,263.8
Segment gross margin	4,160.9		379.4		747.4		416.1		1,165.2		444.6		7,313.6		133.7				7,447.3
Segment selling, general, administrative and development expense (1)	183.2		69.1		80.0		52.4		107.6		63.9		556.2		22.3				578.5
Segment operating profit	$	3,977.7	$	310.3	$	667.4	$	363.7	$	1,057.6	$	380.7	$	6,757.4	$	111.4			$	6,868.8
Stock-based compensation expense																	$	169.3	169.3
Other selling, general, administrative and development expense																	224.5		224.5
Depreciation, amortization and accretion																	3,355.1		3,355.1
Other expense (2)																	1,399.2		1,399.2
Income from continuing operations before income taxes																			$	1,720.7
Capital expenditures (3) (4)	$	481.7	$	151.8	$	507.3	$	165.7	$	229.4	$	353.7	$	1,889.6	$	—	$	12.9	$	1,902.5

F-51

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

(1)Segment selling, general, administrative and development expenses exclude stock-based compensation expense of $169.3 million.

(2)Primarily includes interest expense and $655.9 million in impairment charges, partially offset by gains from foreign currency exchange rate fluctuations.

(3)Includes $6.7 million of finance lease payments included in Repayments of notes payable, credit facilities, term loans, senior notes, secured debt and finance leases in the cash flows from financing activities in the Company’s consolidated statements of cash flows.

(4)Includes $36.7 million of perpetual land easement payments reported in Deferred financing costs and other financing activities in the cash flows from financing activities in the Company’s consolidated statements of cash flows.


	Property												Total Property		Services		Other		Total
Year ended December 31, 2021	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers
Segment revenues	$	4,920.2	$	1,199.1	$	1,005.5	$	496.2	$	1,465.4	$	23.2	$	9,109.6	$	247.3			$	9,356.9
Segment operating expenses	853.5		724.3		346.1		194.0		458.3		9.1		2,585.3		96.7				2,682.0

Segment gross margin	4,066.7		474.8		659.4		302.2		1,007.1		14.1		6,524.3		150.6				6,674.9
Segment selling, general, administrative and development expense (1)	176.9		73.1		72.3		42.1		104.1		5.9		474.4		16.2				490.6
Segment operating profit	$	3,889.8	$	401.7	$	587.1	$	260.1	$	903.0	$	8.2	$	6,049.9	$	134.4			$	6,184.3
Stock-based compensation expense																	$	119.5	119.5
Other selling, general, administrative and development expense																	201.5		201.5
Depreciation, amortization and accretion																	2,332.6		2,332.6
Other expense (2)																	701.3		701.3
Income from continuing operations before income taxes																			$	2,829.4
Capital expenditures (3) (4)	$	440.1	$	175.1	$	460.7	$	58.9	$	260.9	$	2.5	$	1,398.2	$	—	$	9.6	$	1,407.8

(1) Segment selling, general, administrative and development expenses exclude stock-based compensation expense of $119.5 million.

(2) Primarily includes interest expense and $173.7 million in impairment charges, partially offset by gains from foreign currency exchange rate fluctuations.

(3) Includes $5.4 million of finance lease payments included in Repayments of notes payable, credit facilities, term loans, senior notes, secured debt and finance leases in the cash flows from financing activities in the Company’s consolidated statements of cash flows.

(4) Includes $35.2 million of perpetual land easement payments reported in Deferred financing costs and other financing activities in the cash flows from financing activities in the Company’s consolidated statements of cash flows.


	Property										Total Property		Services		Other		Total
Year ended December 31, 2020	U.S. & Canada (1)		Asia-Pacific		Africa		Europe		Latin America
Segment revenues	$	4,517.0	$	1,139.4	$	890.2	$	149.6	$	1,257.4	$	7,953.6	$	87.9			$	8,041.5
Segment operating expenses (2)	808.0		661.4		297.7		28.1		392.5		2,187.7		36.5				2,224.2

Segment gross margin	3,709.0		478.0		592.5		121.5		864.9		5,765.9		51.4				5,817.3
Segment selling, general, administrative and development expense (2)	162.2		97.4		94.4		23.0		93.1		470.1		14.8				484.9
Segment operating profit	$	3,546.8	$	380.6	$	498.1	$	98.5	$	771.8	$	5,295.8	$	36.6			$	5,332.4
Stock-based compensation expense															$	120.8	120.8
Other selling, general, administrative and development expense															176.0		176.0
Depreciation, amortization and accretion															1,882.3		1,882.3
Other expense (3)															1,332.2		1,332.2
Income from continuing operations before income taxes																	$	1,821.1
Capital expenditures (4) (5)	$	360.6	$	112.9	$	334.9	$	31.6	$	221.1	$	1,061.1	$	—	$	10.1	$	1,071.2

F-52

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

(1)For the year ended December 31, 2020, U.S. & Canada includes the following related to the Company’s data center assets (i) $8.5 million of property revenue, (ii) $2.5 million of segment operating expenses, (iii) $3.2 million of segment selling, general, administrative and development expenses and (iv) $0.5 million of capital expenditures.

(2)Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $3.0 million and $117.8 million, respectively.

(3)Primarily includes interest expense, losses from foreign currency exchange rate fluctuations and $222.8 million in impairment charges.

(4)Includes $9.2 million of finance lease payments included in Repayments of notes payable, credit facilities, term loan, senior notes, secured debt and finance leases in the cash flows from financing activities in the Company’s consolidated statements of cash flows.

(5)Includes $36.9 million of perpetual land easement payments reported in Deferred financing costs and other financing activities in the cash flows from financing activities in the Company’s consolidated statements of cash flows.

Additional information relating to the total assets of the Company’s operating segments is as follows for the years ended December 31,:


	2022		2021
Total Assets (1):
U.S. & Canada property	$	26,739.9	$	27,416.3
Asia-Pacific property	4,276.9		5,203.6
Africa property	4,759.4		4,927.7
Europe property	11,464.6		12,068.5
Latin America property	8,666.3		8,433.5
Data Centers	10,702.8		11,136.3
Services	119.3		87.2
Other (2)	465.3		614.8
Total assets	$	67,194.5	$	69,887.9

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

(2)Balances include corporate assets such as cash and cash equivalents, certain tangible and intangible assets and income tax accounts that have not been allocated to specific segments.

F-53

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

Summarized geographic information related to the Company’s operating revenues for the years ended December 31, 2022, 2021 and 2020 and long-lived assets as of December 31, 2022 and 2021 is as follows:


	2022		2021		2020
Operating Revenues:
U.S. & Canada:
Canada (1)	$	12.5	$	11.4	$	0.3
United States (2)	6,001.5		5,179.3		4,604.6
Asia-Pacific (1):
Australia	1.8		1.8		0.0
Bangladesh	3.9		0.4		—
India	1,065.7		1,196.6		1,139.4
New Zealand (3)	0.3		—		—
Philippines	5.3		0.3		—
Africa (1):
Burkina Faso	41.2		44.7		43.9
Ghana	144.4		170.5		174.3
Kenya	123.1		107.4		97.7
Niger	42.1		41.6		40.0
Nigeria	477.2		296.5		249.5
South Africa	164.8		164.0		128.7
Uganda	199.7		180.8		156.1
Europe (1):
France	99.6		98.9		79.4
Germany	320.0		213.5		70.0
Poland	1.0		0.5		0.2
Spain	315.1		183.3		—
Latin America (1):
Argentina	39.2		31.6		22.1
Brazil	741.9		614.6		506.4
Chile	91.8		88.0		67.3
Colombia	106.1		107.7		96.1
Costa Rica	23.9		22.8		23.4
Mexico	588.9		524.6		483.0
Paraguay	15.4		13.5		12.5
Peru	84.7		62.6		46.6

Total operating revenues	$	10,711.1	$	9,356.9	$	8,041.5

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

(2) Balances include revenue from the Company’s Services and Data Centers segments.

(3) The Company began operations in New Zealand through the New Zealand Acquisition, which closed in October 2022.

F-54

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)


	2022		2021
Long-Lived Assets (1):
U.S. & Canada:
Canada (2)	$	207.6	$	227.3
United States (3)	29,275.1		30,306.0
Asia-Pacific (2):
Australia	7.5		6.7
Bangladesh	24.6		16.6
India	2,452.2		3,349.0
New Zealand	37.6		—
Philippines	30.9		21.6
Africa (2):
Burkina Faso	272.0		296.5
Ghana	393.3		633.0
Kenya	783.8		789.8
Niger	211.3		215.9
Nigeria	747.8		722.1
South Africa	345.5		365.9
Uganda	935.2		926.6
Europe (2):
France	1,306.9		1,288.0
Germany	5,642.5		6,119.6
Poland	4.9		4.7
Spain	3,027.8		3,204.2
Latin America (2):
Argentina	194.1		188.7
Brazil	1,908.7		1,864.7
Chile	606.6		634.3
Colombia	238.0		301.1
Costa Rica	111.3		117.9
Mexico	1,243.2		1,331.1
Paraguay	93.7		100.3
Peru	836.2		829.7
Total long-lived assets	$	50,938.3	$	53,861.3

(1) Includes Property and equipment, net, Goodwill and Other intangible assets, net.

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

(3) Balances include the Company’s data centers assets located in the United States.

The following customers within the property and services segments individually accounted for 10% or more of the Company’s consolidated operating revenues for the years ended December 31,:


	2022		2021		2020
T-Mobile	18	%	20	%	19	%
AT&T	17	%	19	%	22	%
Verizon Wireless	11	%	13	%	14	%

21. RELATED PARTY TRANSACTIONS

During the years ended December 31, 2022, 2021 and 2020, the Company had no significant related party transactions.

F-55

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts in millions, unless otherwise disclosed)

22. SUBSEQUENT EVENTS

Repayment of 3.50% Senior Notes—On January 31, 2023, the Company repaid $1.0 billion aggregate principal amount of the 3.50% Notes upon their maturity. The 3.50% Notes were repaid using borrowings under the 2021 Credit Facility. Upon completion of the repayment, none of the 3.50% Notes remained outstanding.

Vodafone Idea—In the third quarter of 2022, VIL communicated that it would make partial payments of its contractual amounts owed to the Company and indicated that it would continue to make partial payments for the remainder of 2022. In late 2022, VIL had communicated its intent to resume payments in full under its contractual obligations owed to the Company beginning on January 1, 2023. However, in early 2023, VIL communicated that it would not be able to resume payments in full of its contractual obligations owed to the Company, and that it would instead continue to make partial payments. See note 16 for further discussion on impairments in India.

In October 2022, and as subsequently amended in February 2023, a subsidiary of the Company, ATC Telecom Infrastructure Private Limited (“ATC TIPL”) and VIL notified the stock exchange of India that both parties have board approvals in relation to an issuance of convertible debentures pursuant to which, in exchange for VIL’s payment of certain amounts towards accounts receivables, ATC TIPL shall pay equivalent amounts towards subscription to convertible debentures issued by VIL. The convertible debentures are to be repaid by VIL with interest and ATC TIPL has the option to convert the debentures into equity of VIL. The issuance of the debentures is subject to certain conditions precedent, which may not be met.

India Term Loan—On February 16, 2023, the Company entered into a 12.0 billion INR (approximately $145.1 million at the date of signing) unsecured term loan with a maturity date that is one year from the date of the first draw thereunder (the “India Term Loan”). On February 17, 2023, the Company borrowed 10.0 billion INR (approximately $120.7 million at the date of borrowing) under the India Term Loan. The India Term Loan bears interest at the three month treasury bill rate as announced by the Financial Benchmarks India Private Limited at the time of borrowing plus a margin of 1.95%. Any outstanding principal and accrued but unpaid interest will be due and payable in full at maturity. The India 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.

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AMERICAN TOWER CORPORATION AND SUBSIDIARIES

SCHEDULE III—SCHEDULE OF REAL ESTATE

AND ACCUMULATED DEPRECIATION

(dollars in millions)


Description		Encumbrances			Initial cost to company	Cost capitalized subsequent to acquisition	Gross amount carried at close of current period			Accumulated depreciation at close of current period		Date of construction	Date acquired	Life on which depreciation in latest income statements is computed
223,055	Sites (1)	$	2,325.0	(2)	(3)	(3)	$	21,201.5	(5)	$	(8,227.3)	Various	Various	Up to 20 years
28	Data Centers	—			(4)	(4)	5,859.4		(5)	(442.2)		Various	Various	Up to 40 years

(1) No single site exceeds 5% of the total amounts indicated in the table above.

(2) Certain assets secure debt of $2.3 billion.

(3) The Company has omitted this information, as it would be impracticable to compile such information on a site-by-site basis.

(4) The Company has aggregated data center information on a basis consistent with its tower portfolio.

(5) Does not include those sites under construction.


	2022		2021		2020
Gross amount at beginning	$	23,948.9	$	18,492.9	$	17,429.3
Additions during period:
Acquisitions (1)	288.1		5,017.6		722.4
Discretionary capital projects (2)	398.0		391.2		308.0
Discretionary ground lease purchases (3)	502.0		242.7		214.3
Redevelopment capital expenditures (4)	335.9		203.6		176.7
Capital improvements (5)	155.4		92.5		91.4
Start-up capital expenditures (6)	227.0		184.6		119.4
Other (7)	1,672.6		51.2		72.8
Total additions	3,579.0		6,183.4		1,705.0
Deductions during period:
Cost of real estate sold or disposed	(257.6)		(263.7)		(259.7)
Other (8)	(209.4)		(463.7)		(381.7)
Total deductions:	(467.0)		(727.4)		(641.4)
Balance at end	$	27,060.9	$	23,948.9	$	18,492.9


	2022		2021		2020
Gross amount of accumulated depreciation at beginning	$	(7,548.1)	$	(6,921.0)	$	(6,382.2)
Additions during period:
Depreciation	(1,373.3)		(863.8)		(771.5)
Other	—		—		—
Total additions	(1,373.3)		(863.8)		(771.5)
Deductions during period:
Amount of accumulated depreciation for assets sold or disposed	128.9		142.4		132.3
Other (8)	123.0		94.3		100.4
Total deductions	251.9		236.7		232.7
Balance at end	$	(8,669.5)	$	(7,548.1)	$	(6,921.0)

(1)Includes amounts related to the acquisition of data centers.

(2)Includes amounts incurred primarily for the construction of new sites.

(3)Includes amounts incurred to purchase or otherwise secure the land under communications sites.

(4)Includes amounts incurred to increase the capacity of existing sites, which results in new incremental tenant revenue.

(5)Includes amounts incurred to enhance existing sites by adding additional functionality, capacity or general asset improvements.

(6)Includes amounts incurred in connection with acquisitions or new market launches. Start-up capital expenditures includes non-recurring expenditures contemplated in acquisitions, new market launch business cases or initial deployment of new technologies or platform expansion initiatives that lead to an increase in site-level cash flow generation.

(7)Primarily includes regional improvements and other additions, including $1.6 billion of data center equipment acquired in 2021 not previously classified as an investment in real estate. The Company determined that the inclusion of data center equipment in this schedule would provide better information and be more consistent with others in the data center industry.

(8)Primarily includes foreign currency exchange rate fluctuations and other deductions.

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