Item 1. UNAUDITED CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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Item 1. UNAUDITED CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

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


	March 31, 2023		December 31, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,803.0	$	2,028.4
Restricted cash	122.4		112.3

Accounts receivable, net	705.4		758.3
Prepaid and other current assets	819.3		723.3

Total current assets	3,450.1		3,622.3
PROPERTY AND EQUIPMENT, net	19,843.3		19,998.3
GOODWILL	12,997.2		12,956.7
OTHER INTANGIBLE ASSETS, net	17,637.1		17,983.3
DEFERRED TAX ASSET	107.4		129.2
DEFERRED RENT ASSET	3,160.3		3,039.1
RIGHT-OF-USE ASSET	8,952.4		8,918.9
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS	669.9		546.7
TOTAL	$	66,817.7	$	67,194.5
LIABILITIES
CURRENT LIABILITIES:
Accounts payable	$	206.0	$	218.6
Accrued expenses	1,171.6		1,344.2
Distributions payable	745.3		745.3
Accrued interest	208.5		261.0
Current portion of operating lease liability	790.1		788.9
Current portion of long-term obligations	3,856.4		4,514.2
Unearned revenue	554.2		439.7
Total current liabilities	7,532.1		8,311.9
LONG-TERM OBLIGATIONS	34,685.6		34,156.0
OPERATING LEASE LIABILITY	7,576.9		7,591.9
ASSET RETIREMENT OBLIGATIONS	2,093.5		2,047.4
DEFERRED TAX LIABILITY	1,505.6		1,492.0
OTHER NON-CURRENT LIABILITIES	1,173.7		1,186.8
Total liabilities	54,567.4		54,786.0
COMMITMENTS AND CONTINGENCIES

EQUITY (shares in thousands):



Common stock: $.01 par value; 1,000,000 shares authorized; 477,042 and 476,623 shares issued; and 466,038 and 465,619 shares outstanding, respectively	4.8		4.8
Additional paid-in capital	14,725.6		14,689.0
Distributions in excess of earnings	(2,496.5)		(2,101.9)
Accumulated other comprehensive loss	(5,526.1)		(5,718.3)
Treasury stock (11,004 shares at cost)	(1,301.2)		(1,301.2)
Total American Tower Corporation equity	5,406.6		5,572.4
Noncontrolling interests	6,843.7		6,836.1
Total equity	12,250.3		12,408.5
TOTAL	$	66,817.7	$	67,194.5

See accompanying notes to unaudited consolidated and condensed consolidated financial statements.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except share and per share data)


	Three Months Ended March 31,
	2023		2022
REVENUES:
Property	$	2,714.5	$	2,600.8
Services	52.7		59.5
Total operating revenues	2,767.2		2,660.3
OPERATING EXPENSES:
Costs of operations (exclusive of items shown separately below):
Property	787.0		771.5
Services	19.1		27.9
Depreciation, amortization and accretion	794.1		815.8
Selling, general, administrative and development expense	263.9		293.9
Other operating expenses	127.5		26.1
Total operating expenses	1,991.6		1,935.2
OPERATING INCOME	775.6		725.1
OTHER INCOME (EXPENSE):

Interest income	30.8		9.9
Interest expense	(340.2)		(262.4)

Other (expense) income (including foreign currency (losses) gains of $(84.1) and $242.1, respectively)	(97.8)		252.6
Total other (expense) income	(407.2)		0.1
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	368.4		725.2
Income tax provision	(53.4)		(22.5)
NET INCOME	315.0		702.7
Net loss attributable to noncontrolling interests	20.8		9.0


NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON STOCKHOLDERS	$	335.8	$	711.7
NET INCOME PER COMMON SHARE AMOUNTS:
Basic net income attributable to American Tower Corporation common stockholders	$	0.72	$	1.56
Diluted net income attributable to American Tower Corporation common stockholders	$	0.72	$	1.56
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in thousands):
BASIC	465,741		455,946
DILUTED	466,810		457,211

See accompanying notes to unaudited consolidated and condensed consolidated financial statements.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(in millions)


	Three Months Ended March 31,
	2023		2022
Net income	$	315.0	$	702.7
Other comprehensive income (loss):




Foreign currency translation adjustments, net of tax (benefit) expense of $(0.0) and $0.0, respectively	232.1		94.4
Other comprehensive income	232.1		94.4
Comprehensive income	547.1		797.1
Comprehensive (income) loss attributable to noncontrolling interests	(19.1)		100.5
Comprehensive income attributable to American Tower Corporation stockholders	$	528.0	$	897.6

See accompanying notes to unaudited consolidated and condensed consolidated financial statements.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)


	Three Months Ended March 31,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	315.0	$	702.7
Adjustments to reconcile net income to cash provided by operating activities
Depreciation, amortization and accretion	794.1		815.8
Stock-based compensation expense	65.5		56.7

Other non-cash items reflected in statements of operations	235.3		(232.8)
Increase in net deferred rent balances	(112.0)		(109.3)
Right-of-use asset and Operating lease liability, net	(44.9)		(26.6)
Changes in unearned revenue	96.2		(201.4)
Increase in assets	(170.1)		(171.5)
Decrease in liabilities	(108.6)		(170.0)
Cash provided by operating activities	1,070.5		663.6
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for purchase of property and equipment and construction activities	(461.9)		(386.1)
Payments for acquisitions, net of cash acquired	(60.9)		(128.6)

Proceeds from sale of short-term investments and other non-current assets	3.1		3.2

Deposits and other	242.9		(1.6)
Cash used for investing activities	(276.8)		(513.1)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings, net	154.1		—
Borrowings under credit facilities	1,745.0		2,250.0
Proceeds from issuance of senior notes, net	1,494.2		—


Proceeds from issuance of securities in securitization transaction	1,300.0		—
Repayments of notes payable, credit facilities, senior notes, secured debt, term loans and finance leases	(4,897.9)		(1,817.1)
Distributions to noncontrolling interest holders	(11.2)		(0.1)



Proceeds from stock options	1.8		8.0
Distributions paid on common stock	(733.6)		(641.2)




Deferred financing costs and other financing activities	(65.0)		(50.5)


Cash used for financing activities	(1,012.6)		(250.9)
Net effect of changes in foreign currency exchange rates on cash and cash equivalents, and restricted cash	3.6		28.5
NET DECREASE IN CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH	(215.3)		(71.9)
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	2,140.7		2,343.3
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$	1,925.4	$	2,271.4
CASH PAID FOR INCOME TAXES (NET OF REFUNDS OF $8.4 AND $0.3, RESPECTIVELY)	$	62.3	$	99.8
CASH PAID FOR INTEREST	$	388.9	$	304.0
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchases of property and equipment under finance leases and perpetual easements	$	7.3	$	1.8
Decrease in accounts payable and accrued expenses for purchases of property and equipment and construction activities	$	(71.7)	$	(46.9)

See accompanying notes to unaudited consolidated and condensed consolidated financial statements.

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
Three Months Ended March 31, 2022 and 2023		Issued Shares	Amount		Shares	Amount
BALANCE, JANUARY 1, 2022		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		505	0.0		—	—		25.9		—		—		—		25.9






Foreign currency translation adjustment, net of tax		—	—		—	—		—		185.9		—		(91.5)		94.4


Distributions to noncontrolling interest holders		—	—		—	—		—		—		—		(0.2)		(0.2)



Common stock distributions declared		—	—		—	—		—		—		(641.7)		—		(641.7)

Net income (loss)		—	—		—	—		—		—		711.7		(9.0)		702.7
BALANCE, MARCH 31, 2022		467,192	$	4.7	(10,915)	$	(1,282.4)	$	12,266.1	$	(4,553.0)	$	(1,072.4)	$	3,887.7	$	9,250.7

BALANCE, JANUARY 1, 2023		476,623	$	4.8	(11,004)	$	(1,301.2)	$	14,689.0	$	(5,718.3)	$	(2,101.9)	$	6,836.1	$	12,408.5
Stock-based compensation related activity		419	0.0		—	—		36.6		—		—		—		36.6






Foreign currency translation adjustment, net of tax		—	—		—	—		—		192.2		—		39.9		232.1


Distributions to noncontrolling interest holders		—	—		—	—		—		—		—		(11.5)		(11.5)



Common stock distributions declared		—	—		—	—		—		—		(730.4)		—		(730.4)

Net income (loss)		—	—		—	—		—		—		335.8		(20.8)		315.0
BALANCE, MARCH 31, 2023		477,042	$	4.8	(11,004)	$	(1,301.2)	$	14,725.6	$	(5,526.1)	$	(2,496.5)	$	6,843.7	$	12,250.3

See accompanying notes to unaudited consolidated and condensed consolidated financial statements.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The accompanying consolidated and condensed consolidated financial statements have been prepared by American Tower Corporation (together with its subsidiaries, “ATC” or the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The financial information included herein is unaudited. However, the Company believes that all adjustments, which are of a normal and recurring nature, considered necessary for a fair presentation of its financial position and results of operations for such periods have been included herein. The consolidated and condensed consolidated financial statements and related notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”). The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the entire year.

Principles of Consolidation and Basis of Presentation—The accompanying consolidated and condensed consolidated financial statements include the accounts of the Company and those entities in which it has a controlling interest. Investments in entities that the Company does not control are accounted for using the equity method or as investments in equity securities, depending upon the Company’s ability to exercise significant influence over operating and financial policies. All intercompany accounts and transactions have been eliminated.

As of March 31, 2023, 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 11) 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 interests) 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 11) holds approximately 28% of the outstanding common equity and 100% of the outstanding mandatorily convertible preferred equity). As of March 31, 2023, 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 11 for a discussion of changes to the Company’s noncontrolling interests during the three months ended March 31, 2023 and 2022.

Sale of Mexico Fiber— On March 29, 2023, the Company completed the sale of one of its subsidiaries in Mexico that held fiber assets (“Mexico Fiber”) for total consideration of $252.5 million, resulting in a loss on the sale of $80.0 million, which was included in Other operating expenses in the accompanying consolidated statements of operations. As a result of the transaction, the Company disposed of $20.7 million of goodwill based on the relative fair value of Mexico Fiber and the portion of the applicable goodwill reporting unit that was expected to be retained. Prior to the divestiture, Mexico Fiber’s operating results were included within the Latin America property segment. The divestiture did not qualify for presentation as a discontinued operation.

Reportable Segments—The Company reports its results in seven segments – U.S. & Canada property, Asia-Pacific property, Africa property, Europe property, Latin America property, Data Centers and Services, which are discussed further in note 15.

Significant Accounting Policies—The Company’s significant accounting policies are described in note 1 to the Company’s consolidated financial statements included in the 2022 Form 10-K. There have been no material changes to the Company’s significant accounting policies during the three months ended March 31, 2023.

Cash and Cash Equivalents and Restricted Cash—The reconciliation of cash and cash equivalents and restricted cash reported within the applicable balance sheet that sum to the total of the same such amounts shown in the statements of cash flows is as follows:


	Three Months Ended March 31,
	2023		2022
Cash and cash equivalents	$	1,803.0	$	1,941.5
Restricted cash	122.4		329.9
Total cash, cash equivalents and restricted cash	$	1,925.4	$	2,271.4

Restricted cash as of March 31, 2022 includes advance payments from a customer received during the year ended December 31, 2021.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Revenue—The Company’s revenue is derived from leasing the right to use its communications sites, land on which 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 distributed antenna system (“DAS”) networks and fiber and other related assets results from agreements with customers that are generally not accounted for as leases.

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. There were no material changes in the receivables, contract assets and contract liabilities from contracts with customers for the three months ended March 31, 2023.

Services revenue—The Company offers tower-related services in the United States. These services include site application, zoning and permitting (“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.

A summary of revenue disaggregated by source and geography is as follows:


Three Months Ended March 31, 2023	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	71.0	$	2.3	$	6.7	$	3.4	$	41.3	$	28.3	$	153.0
Services revenue	52.7		—		—		—		—		—		52.7
Total non-lease revenue	$	123.7	$	2.3	$	6.7	$	3.4	$	41.3	$	28.3	$	205.7
Property lease revenue	1,216.6		248.8		310.3		188.3		422.8		174.7		2,561.5
Total revenue	$	1,340.3	$	251.1	$	317.0	$	191.7	$	464.1	$	203.0	$	2,767.2


Three Months Ended March 31, 2022	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	74.2	$	3.0	$	7.1	$	2.4	$	37.3	$	25.8	$	149.8
Services revenue	59.5		—		—		—		—		—		59.5
Total non-lease revenue	$	133.7	$	3.0	$	7.1	$	2.4	$	37.3	$	25.8	$	209.3
Property lease revenue	1,158.2		295.5		260.7		196.1		382.0		158.5		2,451.0
Total revenue	$	1,291.9	$	298.5	$	267.8	$	198.5	$	419.3	$	184.3	$	2,660.3

Property revenue for the three months ended March 31, 2023 and 2022 includes straight-line revenue of $112.0 million and $109.4 million, respectively.

The Company actively monitors the creditworthiness of its 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.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

During the three months ended March 31, 2023, the Company deferred recognition of revenue of approximately $33.0 million related to a customer in India.

2. PREPAID AND OTHER CURRENT ASSETS

Prepaid and other current assets consisted of the following:


	As of
	March 31, 2023		December 31, 2022
Prepaid assets	$	95.3	$	100.7
Prepaid income tax	153.0		139.3

Unbilled receivables	308.5		283.8
Value added tax and other consumption tax receivables	58.2		83.6
Other miscellaneous current assets (1)	204.3		115.9
Prepaid and other current assets	$	819.3	$	723.3

(1)Includes short-term portion of the VIL OCDs (as defined and further discussed in note 7).

3. LEASES

The Company determines if an arrangement is a lease at the inception of the agreement. The Company considers an arrangement to be a lease if it conveys the right to control the use of the communications infrastructure or ground space underneath communications infrastructure for a period of time in exchange for consideration. The Company is both a lessor and a lessee.

During the three months ended March 31, 2023, the Company made no changes to the methods described in note 4 to its consolidated financial statements included in the 2022 Form 10-K. As of March 31, 2023, the Company does not have any material related party leases as either a lessor or a lessee. To the extent there are any intercompany leases, these are eliminated in consolidation.

Lessor— Historically, the Company has been able to successfully renew its applicable leases as needed to ensure continuation of its revenue. Accordingly, the Company assumes that it will have access to the communications infrastructure or ground space underlying its sites when calculating future minimum rental receipts through the end of the respective terms. Future minimum rental receipts expected under non-cancellable operating lease agreements as of March 31, 2023 were as follows:


Fiscal Year	Amount (1) (2)
Remainder of 2023	$	5,937.0
2024	7,616.7
2025	7,157.0
2026	6,667.0
2027	6,521.2
Thereafter	28,680.8
Total	$	62,579.7

(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 assesses its right-of-use asset and other lease-related assets for impairment, as described in note 1 to the Company’s consolidated financial statements included in the 2022 Form 10-K. There were no material impairments recorded related to these assets during the three months ended March 31, 2023 and 2022.

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 March 31, 2023, operating lease assets were included in Right-of-use asset and finance lease assets were included in Property and equipment, net in the consolidated balance sheet. During the three months ended March 31, 2023, other than leases acquired in connection with acquisitions, there were no material changes in the terms and provisions of the Company’s operating leases in which the

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Company is a lessee. There were no material changes in finance lease assets and liabilities during the three months ended March 31, 2023.

Information about other lease-related balances is as follows:


	As of
	March 31, 2023		December 31, 2022
Operating leases:
Right-of-use asset	$	8,952.4	$	8,918.9

Current portion of lease liability	$	790.1	$	788.9
Lease liability	7,576.9		7,591.9
Total operating lease liability	$	8,367.0	$	8,380.8

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


	As of
	March 31, 2023		December 31, 2022
Operating leases:
Weighted-average remaining lease term (years)	12.1		12.2
Weighted-average incremental borrowing rate	5.5	%	5.3	%

The following table sets forth the components of lease cost:


	Three Months Ended March 31,
		2023		2022
Operating lease cost		$	306.7	$	306.5
Variable lease costs not included in lease liability (1)		109.1		101.4

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

Supplemental cash flow information is as follows:


	Three Months Ended March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(342.6)	$	(336.3)



Non-cash items:
New operating leases (1)	$	56.5	$	58.6
Operating lease modifications and reassessments (2)	$	102.9	$	(11.2)

(1)Amount includes new operating leases and leases acquired in connection with acquisitions.

(2)For the three months ended March 31, 2022, includes a reduction of the operating lease liability due to purchase accounting measurement period adjustments.

As of March 31, 2023, the Company does not have material operating or financing leases that have not yet commenced.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Maturities of operating lease liabilities as of March 31, 2023 were as follows:


Fiscal Year	Operating Lease (1)
Remainder of 2023	$	892.1
2024	1,096.6
2025	1,036.4
2026	976.4
2027	912.6
Thereafter	6,515.1
Total lease payments	11,429.2
Less amounts representing interest	(3,062.2)
Total lease liability	8,367.0
Less current portion of lease liability	790.1
Non-current lease liability	$	7,576.9

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

4. 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 January 1, 2023	$	4,637.5	$	889.2	$	548.5	$	3,044.0	$	915.5	$	2,920.0	$	2.0	$	12,956.7

Other (1)	—		—		—		—		(20.7)		—		—		(20.7)
Effect of foreign currency translation	0.1		5.8		(18.7)		37.9		36.1		—		—		61.2
Balance as of March 31, 2023	$	4,637.6	$	895.0	$	529.8	$	3,081.9	$	930.9	$	2,920.0	$	2.0	$	12,997.2

(1)Other represents the goodwill associated with Mexico Fiber, which was sold during the three months ended March 31, 2023.

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


		As of March 31, 2023						As of December 31, 2022
	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	$	6,076.0	$	(2,612.9)	$	3,463.1	$	6,058.2	$	(2,537.9)	$	3,520.3
Acquired tenant-related intangibles	Up to 20	18,979.2		(6,088.4)		12,890.8		18,941.2		(5,827.7)		13,113.5
Acquired licenses and other intangibles	2-20	1,772.3		(489.1)		1,283.2		1,772.9		(423.4)		1,349.5
Total other intangible assets		$	26,827.5	$	(9,190.4)	$	17,637.1	$	26,772.3	$	(8,789.0)	$	17,983.3

(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

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

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 March 31, 2023, the remaining weighted average amortization period of the Company’s intangible assets was 15 years. Amortization of intangible assets for the three months ended March 31, 2023 and 2022 was $369.5 million and $458.6 million, respectively. Based on current exchange rates, the Company expects to record amortization expense as follows over the remaining current year and the five subsequent years:


Fiscal Year	Amount
Remainder of 2023	$	1,061.2
2024	1,344.0
2025	1,292.5
2026	1,240.5
2027	1,226.1
2028	1,219.5

5. ACCRUED EXPENSES

Accrued expenses consisted of the following:


	As of
	March 31, 2023		December 31, 2022
Accrued construction costs	$	151.8	$	230.8
Accrued income tax payable	30.7		29.8
Accrued pass-through costs	81.5		85.1
Amounts payable for acquisitions	11.5		55.2
Amounts payable to tenants	101.5		95.2
Accrued property and real estate taxes	275.3		270.1
Accrued rent	78.7		77.3

Payroll and related withholdings	88.5		140.4
Other accrued expenses	352.1		360.3
Total accrued expenses	$	1,171.6	$	1,344.2

6. 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
	March 31, 2023		December 31, 2022		Maturity Date
2021 Multicurrency Credit Facility (1) (2)	$	2,882.7	$	3,788.7	June 30, 2025
2021 Term Loan (1)	996.5		996.3		January 31, 2027
2021 Credit Facility (1)	1,165.0		1,080.0		January 31, 2027
2021 EUR Three Year Delayed Draw Term Loan (1) (2)	894.0		882.9		May 28, 2024
2021 USD Two Year Delayed Draw Term Loan (1)	1,499.5		1,499.3		December 28, 2023
3.50% senior notes (3)	—		999.8		January 31, 2023
3.000% senior notes	697.9		694.5		June 15, 2023
0.600% senior notes	499.2		498.9		January 15, 2024
5.00% senior notes	1,000.2		1,000.5		February 15, 2024
3.375% senior notes	648.7		648.3		May 15, 2024
2.950% senior notes	646.9		646.4		January 15, 2025
2.400% senior notes	747.6		747.3		March 15, 2025
1.375% senior notes (4)	539.1		532.1		April 4, 2025

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)


4.000% senior notes	747.1		746.8		June 1, 2025
1.300% senior notes	497.6		497.3		September 15, 2025
4.400% senior notes	498.3		498.1		February 15, 2026
1.600% senior notes	696.6		696.3		April 15, 2026
1.950% senior notes (4)	538.9		532.1		May 22, 2026
1.450% senior notes	594.8		594.5		September 15, 2026
3.375% senior notes	993.4		992.9		October 15, 2026
3.125% senior notes	398.7		398.6		January 15, 2027
2.750% senior notes	746.3		746.1		January 15, 2027
0.450% senior notes (4)	808.5		798.2		January 15, 2027
0.400% senior notes (4)	537.3		530.4		February 15, 2027
3.650% senior notes	643.7		643.3		March 15, 2027
3.55% senior notes	746.5		746.3		July 15, 2027
3.600% senior notes	695.4		695.1		January 15, 2028
0.500% senior notes (4)	806.8		796.6		January 15, 2028
1.500% senior notes	646.6		646.5		January 31, 2028
5.500% senior notes	692.6		—		March 15, 2028
3.950% senior notes	592.9		592.6		March 15, 2029
0.875% senior notes (4)	808.0		797.8		May 21, 2029
3.800% senior notes	1,637.3		1,636.8		August 15, 2029
2.900% senior notes	743.6		743.4		January 15, 2030
2.100% senior notes	742.4		742.2		June 15, 2030
0.950% senior notes (4)	535.3		528.5		October 5, 2030
1.875% senior notes	792.7		792.5		October 15, 2030
2.700% senior notes	694.6		694.4		April 15, 2031
2.300% senior notes	692.1		691.9		September 15, 2031
1.000% senior notes (4)	697.9		689.1		January 15, 2032
4.050% senior notes	642.4		642.2		March 15, 2032
5.650% senior notes	789.9		—		March 15, 2033
1.250% senior notes (4)	535.2		528.5		May 21, 2033
3.700% senior notes	592.3		592.2		October 15, 2049
3.100% senior notes	1,038.3		1,038.3		June 15, 2050
2.950% senior notes	1,022.7		1,022.5		January 15, 2051
Total American Tower Corporation debt	36,064.0		36,307.0

Series 2013-2A securities (5)	—		1,299.7		N/A
Series 2018-1A securities (6)	496.3		496.1		March 15, 2028
Series 2023-1A securities (7)	1,281.6		—		March 15, 2028
Series 2015-2 notes (8)	523.6		523.4		June 16, 2025
Other subsidiary debt (9)	155.5		16.2		Various
Total American Tower subsidiary debt	2,457.0		2,335.4
Finance lease obligations	21.0		27.8
Total	38,542.0		38,670.2
Less current portion of long-term obligations	(3,856.4)		(4,514.2)
Long-term obligations	$	34,685.6	$	34,156.0

(1)Accrues interest at a variable rate.

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

(3)Repaid in full on January 31, 2023 using borrowings under the 2021 Credit Facility (as defined below).

(4)Notes are denominated in EUR.

(5)Repaid in full on the March 2023 repayment date using proceeds from the 2023 Securitization (as defined below).

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

(7)Maturity date reflects the anticipated repayment date; final legal maturity is March 15, 2053.

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

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

(9)Includes amounts drawn under letters of credit in Nigeria, which are denominated in USD, and the India Term Loan (as defined below), which is denominated in Indian Rupee (“INR”).

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) $700.0 million aggregate principal amount of the Company’s 3.000% senior unsecured notes due June 15, 2023, (iii) $500.0 million aggregate principal amount of the Company’s 0.600% senior unsecured notes due January 15, 2024 and (iv) $1.0 billion aggregate principal amount of the Company’s 5.00% senior unsecured notes due February 15, 2024.

*Securitized Debt—*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.

Repayment of Series 2013-2A Securities—On the March 2023 repayment date, the Company repaid the entire $1.3 billion aggregate principal amount outstanding under the Company’s Secured Tower Revenue Securities, Series 2013-2A due 2023 (the “Series 2013-2A Notes”), pursuant to the terms of the agreements governing such securities. The repayment was funded with proceeds from the 2023 Securitization (as defined below).

Secured Tower Revenue Securities, Series 2023-1, Subclass A and Series 2023-1, Subclass R—On March 13, 2023, the Company completed a securitization transaction (the “2023 Securitization”), in which American Tower Trust I (the “Trust”) issued $1.3 billion aggregate principal amount of Secured Tower Revenue Securities, Series 2023-1, Subclass A (the “Series 2023-1A 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, $68.5 million aggregate principal amount of Secured Tower Revenue Securities, Series 2023-1, Subclass R (the “Series 2023-1R Securities” and, together with the Series 2023-1A Securities, the “2023 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 2023 Securities.

The assets of the Trust consist of a nonrecourse componentized loan, which also secures each of (i) the Secured Tower Revenue Securities, Series 2018-1, Subclass A (the “Series 2018-1A Securities”) and (ii) the 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”) issued in a securitization transaction in March 2018 (the “2018 Securitization” and, together with the 2023 Securitization, the “Trust Securitizations”) (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 5,036 broadcast and wireless communications towers and related assets (the “Trust Sites”).

The 2023 Securities correspond to components of the Loan made to the AMT Asset Subs pursuant to the Second Supplement and Amendment dated as of March 13, 2023 (the “2023 Supplement”) to the Second Amended and Restated Loan and Security Agreement dated as of March 29, 2018 (the “Loan Agreement,” which continues to govern the 2018 Securities, and collectively, the “Trust Loan Agreement”).

The 2023 Securities represent a pass-through interest in the components of the Loan corresponding to the 2023 Securities. The Series 2023-1A Securities have an interest rate of 5.490% and the Series 2023-1R Securities have an interest rate of 5.735%. The 2023 Securities have an expected life of approximately five years with a final repayment date in March 2053.

The debt service on the Loan will be paid solely from the cash flows generated from the operation of the Trust Sites held by the AMT Asset Subs. The AMT Asset Subs are required to make monthly payments of interest on the Loan. 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 2023 Securities prior to the monthly payment date in March 2028, which is the anticipated repayment date for such components.

The AMT Asset Subs may prepay the Loan at any time, provided it is accompanied by applicable prepayment consideration. If the prepayment occurs within twelve months of the anticipated repayment date for the 2023 Securities, no prepayment consideration is due. The entire unpaid principal balance of the components of the Loan corresponding to the 2023 Securities will be due in March 2053.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Under the Trust Loan Agreement, the AMT Asset Subs are required to maintain reserve accounts, including for ground rents, real estate and personal property taxes and insurance premiums, and, in certain circumstances, to reserve a portion of advance rents from tenants on the Trust Sites. Based on the terms of the Trust Loan Agreement, all rental cash receipts received each month are reserved for the succeeding month and held in an account controlled by the trustee and then released. The $77.7 million held in the reserve accounts as of March 31, 2023 is classified as restricted cash on the Company’s accompanying condensed consolidated balance sheet.

Repayment of 3.50% Senior Notes—On January 31, 2023, the Company repaid $1.0 billion aggregate principal amount of the 3.50% senior unsecured notes due 2023 (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.

Offering of Senior Notes

*5.500% Senior Notes and 5.650% Senior Notes Offering—*On March 3, 2023, the Company completed a registered public offering of $700.0 million aggregate principal amount of 5.500% senior unsecured notes due 2028 (the “5.500% Notes”) and $800.0 million aggregate principal amount of 5.650% senior unsecured notes due 2033 (the “5.650% Notes” and, together with the 5.500% Notes, the “Notes”). The net proceeds from this offering were approximately $1,480.9 million, after deducting commissions and estimated expenses. The Company used the net proceeds to repay existing indebtedness under the 2021 Multicurrency Credit Facility and the 2021 Credit Facility.

The key terms of the Notes are as follows:


Senior Notes	Aggregate Principal Amount (in millions)		Issue Date and Interest Accrual Date	Maturity Date	Contractual Interest Rate	First Interest Payment	Interest Payments Due (1)	Par Call Date (2)
5.500% Notes	$	700.0	March 3, 2023	March 15, 2028	5.500%	September 15, 2023	March 15 and September 15	February 15, 2028
5.650% Notes	$	800.0	March 3, 2023	March 15, 2033	5.650%	September 15, 2023	March 15 and September 15	December 15, 2032

(1)Accrued and unpaid interest on USD denominated notes is payable in USD semi-annually in arrears and will be computed from the issue date on the basis of a 360-day year comprised of twelve 30-day months.

(2)The Company may redeem the Notes at any time, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes plus a make-whole premium, together with accrued interest to the redemption date. If the Company redeems the Notes on or after the par call date, the Company will not be required to pay a make-whole premium.

If the Company undergoes a change of control and corresponding ratings decline, each as defined in the supplemental indenture for the Notes, the Company may be required to repurchase all of the Notes at a purchase price equal to 101% of the principal amount of such Notes, plus accrued and unpaid interest (including additional interest, if any), up to but not including the repurchase date. The Notes rank equally with all of the Company’s other senior unsecured debt and are structurally subordinated to all existing and future indebtedness and other obligations of its subsidiaries.

The supplemental indenture 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 supplemental indenture.

Bank Facilities

*2021 Multicurrency Credit Facility—*During the three months ended March 31, 2023, the Company borrowed an aggregate of $725.0 million and repaid an aggregate of $1.6 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 for general corporate purposes.

*2021 Credit Facility—*During the three months ended March 31, 2023, the Company borrowed an aggregate of $1.0 billion and repaid an aggregate of $935.0 million 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 3.50% Notes.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

As of March 31, 2023, 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 and restated 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 (in millions)		Undrawn letters of credit (in millions)		Maturity Date		Current margin over LIBOR or EURIBOR (1)		Current commitment fee (2)
2021 Multicurrency Credit Facility	$	2,882.7	$	3.5	June 30, 2025	(3)	1.125	%	0.110	%
2021 Credit Facility	1,165.0		30.5		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	894.2		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.

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 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.

7. 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.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

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:


	March 31, 2023					December 31, 2022
	Fair Value Measurements Using					Fair Value Measurements Using
	Level 1		Level 2		Level 3	Level 1		Level 2		Level 3
Assets:

Investments in equity securities (1)	$	30.4	—		—	$	29.2	—		—
VIL OCDs	—		$	101.6	—	—		—		—
Liabilities:
Interest rate swap agreements	—		$	3.1	—	—		$	6.2	—
Fair value of debt related to interest rate swap agreements (2)	$	(1.8)	—		—	$	(4.9)	—		—

(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 three months ended March 31, 2023 and 2022, the Company recognized unrealized gains of $1.2 million and $9.5 million for equity securities held as of March 31, 2023.

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

During the three months ended March 31, 2023, the Company made no changes to the methods described in note 11 to its consolidated financial statements included in the 2022 Form 10-K that it used to measure the fair value of its interest rate swap agreements.

VIL Optionally Convertible Debentures—In February 2023, one of the Company’s customers in India, Vodafone Idea Limited (“VIL”), issued optionally convertible debentures (the “VIL OCDs”) to the Company’s subsidiary, ATC Telecom Infrastructure Private Limited (“ATC TIPL”), in exchange for VIL’s payment of certain amounts towards accounts receivables. The VIL OCDs are to be repaid by VIL with interest and ATC TIPL has the option to convert the debentures into equity of VIL. The VIL OCDs were issued for an aggregate face value of 16.0 billion INR (approximately $193.2 million on the date of issuance). The VIL OCDs mature in tranches with 8.0 billion INR (approximately $96.6 million on the date of issuance) maturing on August 27, 2023 and 8.0 billion INR (approximately $96.6 million on the date of issuance) maturing on August 27, 2024. The fair value of the VIL OCDs at issuance was approximately $116.5 million. The VIL OCDs accrue interest at a rate of 11.2% annually. Interest is payable to ATC TIPL semi-annually beginning on August 27, 2023.

The VIL OCDs are recorded in Prepaid and other current assets and Notes receivable and other non-current assets in the consolidated balance sheet at fair value. The significant input to the fair value of the VIL OCDs is the VIL equity share price underlying the instruments, less a liquidity discount. Unrealized holding gains and losses for the VIL OCDs are recorded in Other income (expense) in the consolidated statements of operations in the current period. During the three months ended March 31, 2023, the Company recognized unrealized losses of $15.7 million for the VIL OCDs held as of March 31, 2023.

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. There were no material impairments during the three months ended March 31, 2023 and 2022 and there were no significant unobservable inputs used to determine fair value during the three months ended March 31, 2023 or 2022. There were no other items measured at fair value on a nonrecurring basis during the three months ended March 31, 2023 or 2022.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Fair Value of Financial Instruments—The Company’s financial instruments for which the carrying value reasonably approximates fair value at March 31, 2023 and December 31, 2022 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 March 31, 2023 and December 31, 2022, the carrying value of long-term obligations, including the current portion, was $38.5 billion and $38.7 billion, respectively. As of March 31, 2023, the fair value of long-term obligations, including the current portion, was $35.5 billion, of which $25.6 billion was measured using Level 1 inputs and $9.9 billion was measured using Level 2 inputs. As of December 31, 2022, the fair value of long-term obligations, including the current portion, was $35.1 billion, of which $24.5 billion was measured using Level 1 inputs and $10.6 billion was measured using Level 2 inputs.

8. INCOME TAXES

The Company provides for income taxes at the end of each interim period based on the estimated effective tax rate (“ETR”) for the full fiscal year. Cumulative adjustments to the Company’s estimate are recorded in the interim period in which a change in the estimated annual ETR is determined. Under the provisions of the Internal Revenue Code of 1986, as amended, the Company may deduct amounts distributed to stockholders against the income generated by its real estate investment trust (“REIT”) operations. The Company continues to be subject to income taxes on the income of its domestic taxable REIT subsidiaries and income taxes in foreign jurisdictions where it conducts operations.

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.

The increase in the income tax provision during the three months ended March 31, 2023 was primarily attributable to the reversal of valuation allowances in certain foreign jurisdictions during the three months ended March 31, 2022. The increase in the income tax provision during the three months ended March 31, 2023 was also attributable to increased earnings in certain foreign jurisdictions, offset by fewer additions to reserves for the Company’s existing tax positions during the three months ended March 31, 2023.

As of March 31, 2023 and December 31, 2022, the total unrecognized tax benefits that would impact the ETR, if recognized, were approximately $86.9 million and $103.6 million, respectively. The amount of unrecognized tax benefits during the three months ended March 31, 2023 includes (i) additions to the Company’s existing tax positions of $1.2 million, (ii) additions due to foreign currency exchange rate fluctuations of $1.2 million, (iii) reductions due to settlements of $7.5 million and (iv) reductions due to credits available against existing tax positions of $11.6 million. Unrecognized tax benefits are expected to change over the next 12 months if certain tax matters ultimately settle with the applicable taxing jurisdiction during this time frame, as described in note 12 to the Company’s consolidated financial statements included in the 2022 Form 10-K. The impact of the amount of these changes to previously recorded uncertain tax positions could range from zero to $18.0 million.

The Company recorded the following penalties and income tax-related interest expense during the three months ended March 31, 2023 and 2022:


	Three Months Ended March 31,
		2023		2022
Penalties and income tax-related interest expense		$	2.8	$	7.3

As of March 31, 2023 and December 31, 2022, the total amount of accrued income tax related interest and penalties included in the consolidated balance sheets were $43.9 million and $43.3 million, respectively.

9. 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. Awards granted prior to March 10, 2023 generally vest over four years for time-based restricted stock units (“RSUs”)

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

and stock options. In December 2022, the Company’s Compensation Committee changed the terms of its awards to generally vest over three years. The change in vesting terms is applicable for new awards granted beginning on March 10, 2023 and does not change the vesting terms applicable to grants awarded prior to March 10, 2023. The impact of the change in vesting terms is estimated to be approximately $7.9 million for the year ended December 31, 2023. Performance-based restricted stock units (“PSUs”) generally vest over three years. Stock options generally expire ten years from the date of grant. As of March 31, 2023, the Company had the ability to grant stock-based awards with respect to an aggregate of 4.0 million shares of common stock under the 2007 Plan. In addition, the Company maintains an employee stock purchase plan (the “ESPP”) pursuant to which eligible employees may purchase shares of the Company’s common stock on the last day of each bi-annual offering period at a 15% discount from the lower of the closing market value on the first or last day of such offering period. The offering periods run from June 1 through November 30 and from December 1 through May 31 of each year.

During the three months ended March 31, 2023 and 2022, the Company recorded the following stock-based compensation expense in selling, general, administrative and development expense:


	Three Months Ended March 31,
	2023		2022
Stock-based compensation expense	$	65.5	$	56.7

Stock Options—As of March 31, 2023, there was no unrecognized compensation expense related to unvested stock options.

The Company’s option activity for the three months ended March 31, 2023 was as follows (shares disclosed in full amounts):


						Number of Options
Outstanding as of January 1, 2023						855,154

Exercised						(21,526)
Forfeited						—
Expired						—
Outstanding as of March 31, 2023						833,628

*Restricted Stock Units—*As of March 31, 2023, total unrecognized compensation expense related to unvested RSUs granted under the 2007 Plan was $289.3 million and is expected to be recognized over a weighted average period of approximately two years. Vesting of RSUs is subject generally to the employee’s continued employment or death, disability or qualified retirement (each as defined in the applicable RSU award agreement).

*Performance-Based Restricted Stock Units—*During the three months ended March 31, 2023, the Company’s Compensation Committee (the “Compensation Committee”) granted an aggregate of 118,684 PSUs (the “2023 PSUs”) to its executive officers and established the performance metrics for these awards. During the years ended December 31, 2022 and 2021, the Compensation Committee granted an aggregate of 98,542 PSUs (the “2022 PSUs”) and 98,694 PSUs (the “2021 PSUs”), respectively, to its executive officers and established the performance metrics for these awards. Threshold, target and maximum parameters were established for the metrics for a three-year performance period with respect to each of the 2023 PSUs, the 2022 PSUs and the 2021 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.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Restricted Stock Units and Performance-Based Restricted Stock Units—The Company’s RSU and PSU activity for the three months ended March 31, 2023 was as follows (shares disclosed in full amounts):


	RSUs	PSUs
Outstanding as of January 1, 2023 (1)	1,382,879	276,468
Granted (2)	945,029	118,684
Vested and Released (3)	(511,200)	(46,850)
Forfeited	(23,247)	—
Outstanding as of March 31, 2023	1,793,461	348,302
Vested and deferred as of March 31, 2023 (4)	—	12,677

(1)PSUs consist of the target number of shares issuable at the end of the three-year performance period for the outstanding 2022 PSUs and the outstanding 2021 PSUs, or 98,542 shares and 98,694 shares, respectively, and the shares issuable at the end of the three-year performance period for the PSUs granted in 2020 (the “2020 PSUs”) based on achievement against the performance metrics for the three-year performance period, or 79,232 shares.

(2)PSUs consist of the target number of shares issuable at the end of the three-year performance period for the 2023 PSUs, or 118,684 shares.

(3)PSUs consist of shares vested pursuant to the 2020 PSUs. There are no additional shares to be earned related to the 2020 PSUs. As of March 31, 2023, 19,705 earned shares remain outstanding and will vest in May 2023.

(4)Vested and deferred PSUs are related to deferred compensation for certain former employees.

During the three months ended March 31, 2023, the Company recorded $6.8 million, respectively, in stock-based compensation expense for equity awards in which the performance goals have been established and were probable of being achieved. The remaining unrecognized compensation expense related to these awards at March 31, 2023 was $25.4 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 three years.

10. EQUITY

Sales of Equity Securities—The Company receives proceeds from sales of its equity securities pursuant to the ESPP and upon exercise of stock options granted under the 2007 Plan. During the three months ended March 31, 2023, the Company received an aggregate of $1.8 million in proceeds upon exercises of stock options.

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 March 31, 2023, the Company has not sold any shares of common stock under the 2020 ATM Program.

Stock Repurchase Programs—In March 2011, the Company’s Board of Directors approved a stock repurchase program, pursuant to which the Company is authorized to repurchase up to $1.5 billion of its common stock (the “2011 Buyback”). In December 2017, the Board of Directors approved an additional stock repurchase program, pursuant to which the Company is authorized to repurchase up to $2.0 billion of its common stock (the “2017 Buyback,” and, together with the 2011 Buyback, the “Buyback Programs”).

Under the Buyback Programs, the Company is authorized to purchase shares from time to time through open market purchases, in privately negotiated transactions not to exceed market prices, and (with respect to such open market purchases) pursuant to plans adopted in accordance with Rule 10b5-1 under the Exchange Act in accordance with securities laws and other legal requirements and subject to market conditions and other factors.

During the three months ended March 31, 2023, there were no repurchases under either of the Buyback Programs. As of March 31, 2023, the Company has 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. As of March 31, 2023, the Company has not made any repurchases under the 2017 Buyback.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

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 three months ended March 31, 2023, the Company declared or paid the following cash distributions (per share data reflects actual amounts):


Declaration Date	Payment Date	Record Date	Distribution per share		Aggregate Payment Amount (1)
Common Stock



March 8, 2023	April 28, 2023	April 14, 2023	$	1.56	$	727.0
December 7, 2022	February 2, 2023	December 28, 2022	$	1.56	$	726.3

(1)Does not include amounts accrued for distributions payable related to unvested restricted stock units.

During the three months ended March 31, 2022, the Company declared or paid the following cash distributions (per share data reflects actual amounts):


Declaration Date	Payment Date	Record Date	Distribution per share		Aggregate Payment Amount (1)
Common Stock


March 10, 2022	April 29, 2022	April 13, 2022	$	1.40	$	638.8
December 15, 2021	January 14, 2022	December 27, 2021	$	1.39	$	633.5

(1)Does not include amounts accrued for distributions payable related to unvested restricted stock units.

The Company accrues distributions on unvested restricted stock units, which are payable upon vesting. As of March 31, 2023, the amount accrued for distributions payable related to unvested restricted stock units was $13.0 million. During the three months ended March 31, 2023 and 2022, the Company paid $6.6 million and $6.6 million of distributions upon the vesting of restricted stock units, respectively. To maintain its qualification for taxation as a REIT, the Company expects to continue paying distributions, the amount, timing and frequency of which will be determined, and subject to adjustment, by the Company’s Board of Directors.

11. NONCONTROLLING INTERESTS

*European Interests—*In 2021, PGGM converted its previously held noncontrolling interest in a subsidiary that primarily consisted of the Company’s operations in France, Germany and Poland (“Former ATC Europe”) into noncontrolling interests in subsidiaries, consisting of the Company's operations in Germany and Spain. In 2021, 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”) acquired 30% and 18% noncontrolling interests, respectively, in ATC Europe (the “ATC Europe Transactions”) for total aggregate consideration of 2.6 billion EUR (approximately $3.1 billion at the date of closing).

As of March 31, 2023, 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 2021, the Company acquired a 51% controlling interest in Kirtonkhola Tower Bangladesh Limited (“KTBL”) for 900 million Bangladeshi Taka (“BDT”) (approximately $10.6 million at the date of closing). Confidence Group holds a 49% noncontrolling interest in KTBL.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Stonepeak Transaction—In July 2022, 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 (together with the August 2022 closing, the “Stonepeak Transaction”).

As of March 31, 2023, 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 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. During the three months ended March 31, 2023, the Company’s U.S. data center business had distributions of $11.4 million related to the outstanding Stonepeak mandatorily convertible preferred equity (the “Stonepeak Preferred Distributions”). As of March 31, 2023, the amount accrued for Stonepeak Preferred Distributions was $11.4 million.

The changes in noncontrolling interests were as follows:


	Three Months Ended March 31,
	2023		2022
Balance as of January 1,	$	6,836.1	$	3,988.4





Net loss attributable to noncontrolling interests	(20.8)		(9.0)
Foreign currency translation adjustment attributable to noncontrolling interests, net of tax	39.9		(91.5)

Distributions to noncontrolling interest holders (1)	(11.5)		(0.2)

Balance as of March 31,	$	6,843.7	$	3,887.7

(1)For the three months ended March 31, 2023, primarily includes $11.4 million of Stonepeak Preferred Distributions.

12. EARNINGS PER COMMON SHARE

The following table sets forth basic and diluted net income per common share computational data (shares in thousands, except per share data):


	Three Months Ended March 31,
	2023		2022


Net income attributable to American Tower Corporation common stockholders	$	335.8	$	711.7
Basic weighted average common shares outstanding	465,741		455,946
Dilutive securities	1,069		1,265
Diluted weighted average common shares outstanding	466,810		457,211
Basic net income attributable to American Tower Corporation common stockholders per common share	$	0.72	$	1.56
Diluted net income attributable to American Tower Corporation common stockholders per common share	$	0.72	$	1.56

Shares Excluded From Dilutive Effect—The following shares were not included in the computation of diluted earnings per share because the effect would be anti-dilutive (in thousands, on a weighted average basis):


	Three Months Ended March 31,
	2023	2022
Restricted stock units	5	106

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

13. 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 of which is 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 communications 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 March 31, 2023, the Company has purchased an aggregate of approximately 500 of the subleased towers which are subject to the applicable agreement. The aggregate purchase option price for the remaining towers leased and subleased is $1.1 billion and includes per annum accretion through the applicable expiration of the lease or sublease of a site. For all these sites, AT&T has the right to continue to lease the reserved space through June 30, 2025 at the then-current monthly fee, which will escalate in accordance with the standard master lease agreement for the remainder of AT&T’s tenancy. Thereafter, AT&T has the right to renew the lease for up to five successive five-year terms.

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.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

14. ACQUISITIONS

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 three months ended March 31, 2023 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.

The Company evaluates each of its acquisitions under the accounting guidance framework to determine whether to treat an acquisition as an asset acquisition or a business combination. For those transactions treated as asset acquisitions, the purchase price is allocated to the assets acquired, with no recognition of goodwill.

For those acquisitions accounted for as business combinations, the Company recognizes acquisition and merger related expenses in the period in which they are incurred and services are received; for transactions accounted for as asset acquisitions, these costs are capitalized as part of the purchase price. Acquisition and merger related costs may include finder’s fees, advisory, legal, accounting, valuation and other professional or consulting fees and general administrative costs directly related to completing the transaction. Integration costs include incremental and non-recurring costs necessary to convert data 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 three months ended March 31, 2023 and 2022, the Company recorded acquisition and merger related expenses for business combinations and non-capitalized asset acquisition costs and integration costs as follows:


	Three Months Ended March 31,
		2023		2022
Acquisition and merger related expenses		$	5.0	$	5.7
Integration costs		$	2.6	$	10.0

During the three months ended March 31, 2022, the Company also recorded benefits of $1.6 million, related to pre-acquisition contingencies and settlements.

2023 Transactions

The estimated aggregate impact of the acquisitions completed in 2023 on the Company’s revenues and gross margin for the three months ended March 31, 2023 was not material to the Company’s operating results.

Other Acquisitions—During the three months ended March 31, 2023, the Company acquired a total of 8 communications sites, as well as other communications infrastructure assets, in the United States, Canada, Poland and Spain for an aggregate purchase price of $17.5 million. Of the aggregate purchase price, $8.4 million is reflected as a payable in the consolidated balance sheet as of March 31, 2023. These acquisitions were accounted for as asset acquisitions.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

The following table summarizes the allocations of the purchase prices for the fiscal year 2023 acquisitions based upon their estimated fair value at the date of acquisition:


	Other
Current assets	$	1.5

Property and equipment	7.5
Intangible assets (1):
Tenant-related intangible assets	8.0
Network location intangible assets	0.8

Other non-current assets	0.8
Current liabilities	(0.2)

Other non-current liabilities	(0.9)
Net assets acquired	17.5

Fair value of net assets acquired	17.5


Purchase price	$	17.5

(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.

15. 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 types of leased spaces and related services from, and requires different resources, skill sets and marketing strategies than, the existing property operating segment in the U.S. & Canada.

As of March 31, 2023, the Company’s property operations consisted of the following:

U.S. & Canada: property operations in Canada and the United States;
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 to the Company’s consolidated financial statements included in the 2022 Form 10-K and as updated in note 1 above. Among other factors, in evaluating financial performance in each business segment, management uses segment gross margin and segment operating profit. The Company defines segment gross margin as segment revenue less segment operating expenses excluding 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

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

indicated above, such as depreciation, have been excluded from segment operating performance as they are not considered in the review of information or the evaluation of results by management. There are no significant revenues resulting from transactions between the Company’s operating segments. All intercompany transactions are eliminated to reconcile segment results and assets to the consolidated statements of operations and consolidated balance sheets.

Summarized financial information concerning the Company’s reportable segments for the three months ended March 31, 2023 and 2022 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
Three Months Ended March 31, 2023	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers
Segment revenues	$	1,287.6	$	251.1	$	317.0	$	191.7	$	464.1	$	203.0	$	2,714.5	$	52.7			$	2,767.2
Segment operating expenses	205.3		168.4		118.5		73.1		137.9		83.8		787.0		19.1				806.1
Segment gross margin	1,082.3		82.7		198.5		118.6		326.2		119.2		1,927.5		33.6				1,961.1
Segment selling, general, administrative and development expense (1)	40.8		8.8		21.4		14.6		29.7		17.5		132.8		5.7				138.5
Segment operating profit	$	1,041.5	$	73.9	$	177.1	$	104.0	$	296.5	$	101.7	$	1,794.7	$	27.9			$	1,822.6
Stock-based compensation expense																	$	65.5	65.5
Other selling, general, administrative and development expense																	59.9		59.9
Depreciation, amortization and accretion																	794.1		794.1
Other expense (2)																	534.7		534.7
Income from continuing operations before income taxes																			$	368.4
Total assets	$	26,657.4	$	3,879.7	$	4,632.4	$	11,609.5	$	8,741.0	$	10,632.5	$	66,152.5	$	125.2	$	540.0	$	66,817.7

(1)Segment selling, general, administrative and development expenses exclude stock-based compensation expense of $65.5 million.

(2)Primarily includes interest expense and losses from foreign currency exchange rate fluctuations. Three months ended March 31, 2023 also includes a loss on the sale of Mexico Fiber of $80.0 million and $29.8 million in impairment charges.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)


	Property												Total Property		Services		Other		Total
Three Months Ended March 31, 2022	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers
Segment revenues	$	1,232.4	$	298.5	$	267.8	$	198.5	$	419.3	$	184.3	$	2,600.8	$	59.5			$	2,660.3
Segment operating expenses	199.8		175.1		97.7		92.3		130.0		76.6		771.5		27.9				799.4
Segment gross margin	1,032.6		123.4		170.1		106.2		289.3		107.7		1,829.3		31.6				1,860.9
Segment selling, general, administrative and development expense (1)	42.8		47.9		22.5		14.9		28.8		16.4		173.3		6.0				179.3
Segment operating profit	$	989.8	$	75.5	$	147.6	$	91.3	$	260.5	$	91.3	$	1,656.0	$	25.6			$	1,681.6
Stock-based compensation expense																	$	56.7	56.7
Other selling, general, administrative and development expense																	57.9		57.9
Depreciation, amortization and accretion																	815.8		815.8
Other expense (2)																	26.0		26.0
Income from continuing operations before income taxes																			$	725.2
Total assets	$	27,247.9	$	5,102.1	$	4,894.0	$	11,741.3	$	9,136.0	$	10,996.2	$	69,117.5	$	86.3	$	559.7	$	69,763.5

(1)Segment selling, general, administrative and development expenses exclude stock-based compensation expense of $56.7 million.

(2)Primarily includes interest expense, partially offset by gains from foreign currency exchange rate fluctuations.

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