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)


	September 30, 2023		December 31, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	2,118.9	$	2,028.4
Restricted cash	112.7		112.3

Accounts receivable, net	647.7		758.3
Prepaid and other current assets	970.6		723.3

Total current assets	3,849.9		3,622.3
PROPERTY AND EQUIPMENT, net	19,612.1		19,998.3
GOODWILL	12,569.7		12,956.7
OTHER INTANGIBLE ASSETS, net	16,655.1		17,983.3
DEFERRED TAX ASSET	126.8		129.2
DEFERRED RENT ASSET	3,383.3		3,039.1
RIGHT-OF-USE ASSET	8,801.0		8,918.9
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS	655.1		546.7
TOTAL	$	65,653.0	$	67,194.5
LIABILITIES
CURRENT LIABILITIES:
Accounts payable	$	216.2	$	218.6
Accrued expenses	1,222.8		1,344.2
Distributions payable	775.9		745.3
Accrued interest	244.2		261.0
Current portion of operating lease liability	779.6		788.9
Current portion of long-term obligations	3,157.5		4,514.2
Unearned revenue	472.5		439.7
Total current liabilities	6,868.7		8,311.9
LONG-TERM OBLIGATIONS	35,442.4		34,156.0
OPERATING LEASE LIABILITY	7,436.7		7,591.9
ASSET RETIREMENT OBLIGATIONS	2,113.0		2,047.4
DEFERRED TAX LIABILITY	1,422.6		1,492.0
OTHER NON-CURRENT LIABILITIES	1,135.1		1,186.8
Total liabilities	54,418.5		54,786.0
COMMITMENTS AND CONTINGENCIES

EQUITY (shares in thousands):



Common stock: $.01 par value; 1,000,000 shares authorized; 477,164 and 476,623 shares issued; and 466,160 and 465,619 shares outstanding, respectively	4.8		4.8
Additional paid-in capital	14,823.0		14,689.0
Distributions in excess of earnings	(2,927.4)		(2,101.9)
Accumulated other comprehensive loss	(6,065.9)		(5,718.3)
Treasury stock (11,004 shares at cost)	(1,301.2)		(1,301.2)
Total American Tower Corporation equity	4,533.3		5,572.4
Noncontrolling interests	6,701.2		6,836.1
Total equity	11,234.5		12,408.5
TOTAL	$	65,653.0	$	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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
REVENUES:
Property	$	2,792.4	$	2,609.9	$	8,235.5	$	7,825.2
Services	26.2		61.6		122.0		180.9
Total operating revenues	2,818.6		2,671.5		8,357.5		8,006.1
OPERATING EXPENSES:
Costs of operations (exclusive of items shown separately below):
Property	803.3		808.8		2,400.4		2,374.3
Services	12.5		27.7		48.8		84.5
Depreciation, amortization and accretion	762.9		898.1		2,321.6		2,540.4
Selling, general, administrative and development expense	231.9		231.2		740.2		748.0
Other operating expenses	27.3		52.8		216.5		98.6
Goodwill impairment	322.0		—		322.0		—
Total operating expenses	2,159.9		2,018.6		6,049.5		5,845.8
OPERATING INCOME	658.7		652.9		2,308.0		2,160.3
OTHER INCOME (EXPENSE):

Interest income	45.7		18.8		107.1		43.0
Interest expense	(359.2)		(294.0)		(1,047.5)		(833.0)
Loss on retirement of long-term obligations	—		(0.4)		(0.3)		(0.4)
Other income (including foreign currency gains of $238.6, $474.5, $46.9 and $1,111.3, respectively)	297.8		478.5		118.8		1,109.4
Total other (expense) income	(15.7)		202.9		(821.9)		319.0
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	643.0		855.8		1,486.1		2,479.3
Income tax provision	(65.7)		(36.1)		(132.3)		(66.0)
NET INCOME	577.3		819.7		1,353.8		2,413.3
Net loss attributable to noncontrolling interests	9.6		20.0		44.6		36.3


NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON STOCKHOLDERS	$	586.9	$	839.7	$	1,398.4	$	2,449.6
NET INCOME PER COMMON SHARE AMOUNTS:
Basic net income attributable to American Tower Corporation common stockholders	$	1.26	$	1.80	$	3.00	$	5.32
Diluted net income attributable to American Tower Corporation common stockholders	$	1.26	$	1.80	$	2.99	$	5.31
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in thousands):
BASIC	466,168		465,594		466,000		460,141
DILUTED	467,161		466,801		467,034		461,360

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

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in millions)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net income	$	577.3	$	819.7	$	1,353.8	$	2,413.3
Other comprehensive income (loss):




Foreign currency translation adjustments, net of tax (benefit) expense of $(0.2), $(0.8), $0.0 and $(1.0), respectively	(624.6)		(1,075.9)		(406.1)		(2,117.9)
Other comprehensive loss	(624.6)		(1,075.9)		(406.1)		(2,117.9)
Comprehensive (loss) income	(47.3)		(256.2)		947.7		295.4
Comprehensive loss attributable to noncontrolling interests	128.9		225.9		103.1		494.9
Comprehensive income (loss) attributable to American Tower Corporation stockholders	$	81.6	$	(30.3)	$	1,050.8	$	790.3

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

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)


	Nine Months Ended September 30,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	1,353.8	$	2,413.3
Adjustments to reconcile net income to cash provided by operating activities
Depreciation, amortization and accretion	2,321.6		2,540.4
Stock-based compensation expense	158.0		138.1
Loss on early retirement of long-term obligations	0.3		0.4
Other non-cash items reflected in statements of operations	413.9		(1,112.2)
Increase in net deferred rent balances	(341.4)		(350.4)
Right-of-use asset and Operating lease liability, net	(60.5)		0.6
Changes in unearned revenue	0.0		(710.9)
Increase in assets	(268.1)		(309.3)
Increase (decrease) in liabilities	2.9		(98.8)
Cash provided by operating activities	3,580.5		2,511.2
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for purchase of property and equipment and construction activities	(1,273.5)		(1,215.4)
Payments for acquisitions, net of cash acquired	(151.9)		(359.1)

Proceeds from sale of short-term investments and other non-current assets	13.0		16.0

Deposits and other	246.8		52.3
Cash used for investing activities	(1,165.6)		(1,506.2)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings, net	147.3		13.5
Borrowings under credit facilities	5,370.0		3,500.0
Proceeds from issuance of senior notes, net	5,678.3		1,293.6


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	(12,437.1)		(8,595.7)
Distributions to noncontrolling interest holders	(34.4)		(3.2)

Contributions from noncontrolling interest holders	3.0		2,548.5

Proceeds from stock options and employee stock purchase plan	12.3		21.0
Distributions paid on common stock	(2,193.2)		(1,945.9)

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


Deferred financing costs and other financing activities	(127.7)		(84.0)


Cash used for financing activities	(2,281.5)		(960.5)
Net effect of changes in foreign currency exchange rates on cash and cash equivalents, and restricted cash	(42.5)		(138.2)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH	90.9		(93.7)
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	$	2,231.6	$	2,249.6
CASH PAID FOR INCOME TAXES (NET OF REFUNDS OF $27.5 AND $7.1, RESPECTIVELY)	$	197.4	$	244.5
CASH PAID FOR INTEREST	$	1,054.8	$	852.5
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchases of property and equipment under finance leases and perpetual easements	$	22.6	$	19.4
Decrease in accounts payable and accrued expenses for purchases of property and equipment and construction activities	$	(56.8)	$	(26.5)

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 September 30, 2022 and 2023		Issued Shares	Amount		Shares	Amount
BALANCE, JULY 1, 2022		476,500	$	4.8	(10,915)	$	(1,282.4)	$	14,606.8	$	(5,528.2)	$	(842.3)	$	3,767.5	$	10,726.2
Stock-based compensation related activity		17	0.0		—	—		40.1		—		—		—		40.1






Foreign currency translation adjustment, net of tax		—	—		—	—		—		(870.0)		—		(205.9)		(1,075.9)

Contributions from noncontrolling interest holders		—	—		—	—		—		—		—		2,504.2		2,504.2
Distributions to noncontrolling interest holders		—	—		—	—		—		—		—		(9.0)		(9.0)


Common stock distributions declared		—	—		—	—		—		—		(686.7)		—		(686.7)

Net income (loss)		—	—		—	—		—		—		839.7		(20.0)		819.7
BALANCE, SEPTEMBER 30, 2022		476,517	$	4.8	(10,915)	$	(1,282.4)	$	14,646.9	$	(6,398.2)	$	(689.3)	$	6,036.8	$	12,318.6

BALANCE, JULY 1, 2023		477,138	$	4.8	(11,004)	$	(1,301.2)	$	14,779.2	$	(5,560.6)	$	(2,755.8)	$	6,840.8	$	12,007.2
Stock-based compensation related activity		26	0.0		—	—		43.8		—		—		—		43.8






Foreign currency translation adjustment, net of tax		—	—		—	—		—		(505.3)		—		(119.3)		(624.6)

Contributions from noncontrolling interest holders		—	—		—	—		—		—		—		1.1		1.1
Distributions to noncontrolling interest holders		—	—		—	—		—		—		—		(11.8)		(11.8)


Common stock distributions declared		—	—		—	—		—		—		(758.5)		—		(758.5)

Net income (loss)		—	—		—	—		—		—		586.9		(9.6)		577.3
BALANCE, SEPTEMBER 30, 2023		477,164	$	4.8	(11,004)	$	(1,301.2)	$	14,823.0	$	(6,065.9)	$	(2,927.4)	$	6,701.2	$	11,234.5


	Common Stock	Treasury Stock			Additional Paid-in Capital	Accumulated Other Comprehensive Loss		Distributions in Excess of Earnings		Noncontrolling Interests		Total Equity
Nine Months Ended September 30, 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		607	0.0		—	—		106.8		—		—		—		106.8
Issuance of common stock- stock purchase plan		38	0.0		—	—		8.3		—		—		—		8.3
Issuance of common stock		9,185	0.1		—	—		2,291.6		—		—		—		2,291.7




Foreign currency translation adjustment, net of tax		—	—		—	—		—		(1,659.3)		—		(458.6)		(2,117.9)

Contributions from noncontrolling interest		—	—			—		—		—		—		2,552.6		2,552.6
Distributions to noncontrolling interest holders		—	—		—	—		—		—		—		(9.3)		(9.3)


Common stock distributions declared		—	—		—	—		—		—		(1,996.5)		—		(1,996.5)

Net income (loss)		—	—		—	—		—		—		2,449.6		(36.3)		2,413.3
BALANCE, SEPTEMBER 30, 2022		476,517	$	4.8	(10,915)	$	(1,282.4)	$	14,646.9	$	(6,398.2)	$	(689.3)	$	6,036.8	$	12,318.6

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		489	0.0		—	—		125.8		—		—		—		125.8
Issuance of common stock- stock purchase plan		52	0.0		—	—		8.2		—		—		—		8.2





Foreign currency translation adjustment, net of tax		—	—		—	—		—		(347.6)		—		(58.5)		(406.1)

Contributions from noncontrolling interest holders		—	—		—	—		—		—		—		11.6		11.6
Distributions to noncontrolling interest holders		—	—		—	—		—		—		—		(43.4)		(43.4)



Common stock distributions declared		—	—		—	—		—		—		(2,223.9)		—		(2,223.9)

Net income (loss)		—	—		—	—		—		—		1,398.4		(44.6)		1,353.8
BALANCE, SEPTEMBER 30, 2023		477,164	$	4.8	(11,004)	$	(1,301.2)	$	14,823.0	$	(6,065.9)	$	(2,927.4)	$	6,701.2	$	11,234.5

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 and nine months ended September 30, 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 September 30, 2023, the Company holds (i) a 52% controlling interest in subsidiaries whose holdings consist of the Company’s operations in France, Germany 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 September 30, 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 and nine months ended September 30, 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 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.

Sale of Poland Subsidiary—On May 31, 2023, the Company completed the sale of its subsidiary in Poland (“ATC Poland”) for total consideration of 6.7 million EUR (approximately $7.2 million at the date of closing), resulting in a gain on the sale of $1.1 million, which was included in Other operating expenses in the accompanying consolidated statements of operations. Prior to the divestiture, ATC Poland’s operating results were included within the Europe 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 nine months ended September 30, 2023.

The Company is in the process of reviewing the remaining estimated useful lives of its tower assets. The Company now has over 20 years of operating history, and it is considering whether it should modify its current estimates for asset lives based on its historical operating experience. The Company has retained an independent consultant to assist the Company in completing this review and analysis. The Company currently depreciates its towers on a straight-line basis over the shorter of the term of the underlying ground lease (including renewal options) taking into account residual value or the estimated useful life of the tower, which the Company has historically estimated to be 20 years. Additionally, certain of

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

the Company’s intangible assets are amortized on a similar basis to its tower assets, as the estimated useful lives of such intangible assets correlate to the useful life of the towers. If the Company concludes that a revision in the estimated useful lives of its tower assets is appropriate based on its review and analysis, which the Company expects to conclude in 2024, the Company will account for any changes in the useful lives as a change in accounting estimate under ASC 250 Accounting Changes and Error Corrections, which will be recorded prospectively beginning in the period of change. Based on preliminary information obtained to date, the Company expects that its estimated asset lives may be extended, which would result in prospective (i) decreases in depreciation and amortization and (ii) increases in the right of use asset and operating lease liability, and such changes could be material to future depreciation and amortization and the Company’s consolidated results of operations.

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:


	Nine Months Ended September 30,
	2023		2022
Cash and cash equivalents	$	2,118.9	$	2,121.8
Restricted cash	112.7		127.8
Total cash, cash equivalents and restricted cash	$	2,231.6	$	2,249.6

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 and nine months ended September 30, 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:

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)


Three Months Ended September 30, 2023	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	91.3	$	2.4	$	5.8	$	3.0	$	29.8	$	29.6	$	161.9
Services revenue	26.2		—		—		—		—		—		26.2
Total non-lease revenue	$	117.5	$	2.4	$	5.8	$	3.0	$	29.8	$	29.6	$	188.1
Property lease revenue	1,233.2		299.9		287.9		197.4		429.8		182.3		2,630.5
Total revenue	$	1,350.7	$	302.3	$	293.7	$	200.4	$	459.6	$	211.9	$	2,818.6


Three Months Ended September 30, 2022	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	74.3	$	4.1	$	6.5	$	8.3	$	39.0	$	26.8	$	159.0
Services revenue	61.6		—		—		—		—		—		61.6
Total non-lease revenue	$	135.9	$	4.1	$	6.5	$	8.3	$	39.0	$	26.8	$	220.6
Property lease revenue	1,184.9		245.1		296.9		175.7		381.4		166.9		2,450.9
Total revenue	$	1,320.8	$	249.2	$	303.4	$	184.0	$	420.4	$	193.7	$	2,671.5


Nine Months Ended September 30, 2023	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	246.2	$	7.1	$	18.4	$	10.5	$	99.6	$	86.2	$	468.0
Services revenue	122.0		—		—		—		—		—		122.0
Total non-lease revenue	$	368.2	$	7.1	$	18.4	$	10.5	$	99.6	$	86.2	$	590.0
Property lease revenue	3,669.1		808.0		913.5		579.8		1,263.5		533.6		7,767.5
Total revenue	$	4,037.3	$	815.1	$	931.9	$	590.3	$	1,363.1	$	619.8	$	8,357.5


Nine Months Ended September 30, 2022	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	222.3	$	12.0	$	20.7	$	17.5	$	114.9	$	78.6	$	466.0
Services revenue	180.9		—		—		—		—		—		180.9
Total non-lease revenue	$	403.2	$	12.0	$	20.7	$	17.5	$	114.9	$	78.6	$	646.9
Property lease revenue	3,505.2		833.7		836.0		543.8		1,150.0		490.5		7,359.2
Total revenue	$	3,908.4	$	845.7	$	856.7	$	561.3	$	1,264.9	$	569.1	$	8,006.1

Property revenue for the three months ended September 30, 2023 and 2022 includes straight-line revenue of $108.6 million and $127.7 million, respectively. Property revenue for the nine months ended September 30, 2023 and 2022 includes straight-line revenue of $341.4 million and $350.4 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. During the nine months ended September 30, 2023, the Company deferred recognition of revenue of approximately $61.9 million, net of recoveries, related to a customer in India.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

2. PREPAID AND OTHER CURRENT ASSETS

Prepaid and other current assets consisted of the following:


	As of
	September 30, 2023		December 31, 2022
Prepaid assets	$	104.0	$	100.7
Prepaid income tax	147.2		139.3

Unbilled receivables	345.6		283.8
Value added tax and other consumption tax receivables	54.5		83.6
Other miscellaneous current assets (1)	319.3		115.9
Prepaid and other current assets	$	970.6	$	723.3

(1)Includes 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 nine months ended September 30, 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 September 30, 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 September 30, 2023 were as follows:


Fiscal Year	Amount (1) (2)
Remainder of 2023	$	2,052.8
2024	7,973.8
2025	7,432.9
2026	7,002.1
2027	6,823.8
Thereafter	29,789.3
Total	$	61,074.7

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

(2)Balances represent contractual amounts owed 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 and nine months ended September 30, 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 September 30, 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 nine months ended September 30, 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 Company is a lessee. There were no material changes in finance lease assets and liabilities during the nine months ended September 30, 2023.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Information about other lease-related balances is as follows:


	As of
	September 30, 2023		December 31, 2022
Operating leases:
Right-of-use asset	$	8,801.0	$	8,918.9

Current portion of lease liability	$	779.6	$	788.9
Lease liability	7,436.7		7,591.9
Total operating lease liability	$	8,216.3	$	8,380.8

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


	As of
	September 30, 2023		December 31, 2022
Operating leases:
Weighted-average remaining lease term (years)	11.9		12.2
Weighted-average incremental borrowing rate	5.7	%	5.3	%

The following table sets forth the components of lease cost:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating lease cost	$	316.3	$	309.1	$	936.9	$	919.8
Variable lease costs not included in lease liability (1)	109.5		92.3		333.1		290.0

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

Supplemental cash flow information is as follows:


	Nine Months Ended September 30,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(962.1)	$	(916.0)



Non-cash items:
New operating leases (1)	$	166.6	$	289.9
Operating lease modifications and reassessments	$	290.2	$	114.2

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

As of September 30, 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 September 30, 2023 were as follows:


Fiscal Year	Operating Lease (1)
Remainder of 2023	$	293.9
2024	1,153.4
2025	1,066.0
2026	1,009.6
2027	947.6
Thereafter	6,806.8
Total lease payments	11,277.3
Less amounts representing interest	(3,061.0)
Total lease liability	8,216.3
Less current portion of lease liability	779.6
Non-current lease liability	$	7,436.7

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

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

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)
Impairments (2)	—		(322.0)		—		—		—		—		—		(322.0)
Effect of foreign currency translation	(0.1)		(3.4)		(44.5)		(37.6)		41.3		—		—		(44.3)
Balance as of September 30, 2023	$	4,637.4	$	563.8	$	504.0	$	3,006.4	$	936.1	$	2,920.0	$	2.0	$	12,569.7

(1)Other represents the goodwill associated with Mexico Fiber, which was sold during the nine months ended September 30, 2023.

(2)Includes $322.0 million of goodwill impairment associated with the India reporting unit.

India Goodwill Impairment

The Company reviews goodwill for impairment annually (as of December 31) or whenever events or circumstances indicate the carrying amount of an asset may not be recoverable, as further discussed in note 1 to its consolidated financial statements included in the 2022 Form 10-K.

The Company concluded that a triggering event occurred as of September 30, 2023 with respect to its India reporting unit primarily due to indications of value received from third parties in connection with the Company’s review of various strategic alternatives for its India operations, including the potential sale of equity interests in its India operations. As a result, the Company performed an interim quantitative goodwill impairment test as of September 30, 2023 using, among other things, the information obtained from third parties to compare the fair value of the India reporting unit to its carrying amount, including goodwill. The result of the Company’s interim goodwill impairment test as of September 30, 2023 indicated that the carrying amount of the Company's India reporting unit exceeded its estimated fair value. As a result, the Company recorded a goodwill impairment charge of $322.0 million. The goodwill impairment charge is recorded in Goodwill impairment in the accompanying consolidated statements of operations.

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


		As of September 30, 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	$	5,976.9	$	(2,714.6)	$	3,262.3	$	6,058.2	$	(2,537.9)	$	3,520.3
Acquired tenant-related intangibles	Up to 20	18,621.2		(6,397.5)		12,223.7		18,941.2		(5,827.7)		13,113.5
Acquired licenses and other intangibles	2-20	1,578.1		(409.0)		1,169.1		1,772.9		(423.4)		1,349.5
Total other intangible assets		$	26,176.2	$	(9,521.1)	$	16,655.1	$	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 intangibles represent the value of acquired licenses, trade name and in place leases. In place lease value represents the

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

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 September 30, 2023, the remaining weighted average amortization period of the Company’s intangible assets was 15 years. Amortization of intangible assets for the three and nine months ended September 30, 2023 was $352.0 million and $1.1 billion, respectively. Amortization of intangible assets for the three and nine months ended September 30, 2022 was $378.4 million and $1.3 billion, 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	$	346.6
2024	1,329.6
2025	1,278.3
2026	1,225.6
2027	1,211.3
2028	1,204.8

5. ACCRUED EXPENSES

Accrued expenses consisted of the following:


	As of
	September 30, 2023		December 31, 2022
Accrued construction costs	$	155.7	$	230.8
Accrued income tax payable	24.9		29.8
Accrued pass-through costs	81.9		85.1
Amounts payable for acquisitions	4.0		55.2
Amounts payable to tenants	93.1		95.2
Accrued property and real estate taxes	299.8		270.1
Accrued rent	74.1		77.3

Payroll and related withholdings	128.5		140.4
Other accrued expenses	360.8		360.3
Total accrued expenses	$	1,222.8	$	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
	September 30, 2023		December 31, 2022		Maturity Date
2021 Multicurrency Credit Facility (1) (2)	$	261.0	$	3,788.7	July 1, 2026
2021 Term Loan (1)	996.8		996.3		January 31, 2027
2021 Credit Facility (1)	2,088.4		1,080.0		July 1, 2028
2021 EUR Three Year Delayed Draw Term Loan (1) (2)	872.2		882.9		May 28, 2024
2021 USD Two Year Delayed Draw Term Loan (1) (3)	—		1,499.3		N/A
3.50% senior notes (4)	—		999.8		N/A
3.000% senior notes (5)	—		694.5		N/A
0.600% senior notes	499.7		498.9		January 15, 2024
5.00% senior notes	1,000.2		1,000.5		February 15, 2024
3.375% senior notes	649.4		648.3		May 15, 2024
2.950% senior notes	647.7		646.4		January 15, 2025
2.400% senior notes	748.2		747.3		March 15, 2025
1.375% senior notes (6)	526.5		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	747.7		746.8		June 1, 2025
1.300% senior notes	498.1		497.3		September 15, 2025
4.400% senior notes	498.6		498.1		February 15, 2026
1.600% senior notes	697.1		696.3		April 15, 2026
1.950% senior notes (6)	526.2		532.1		May 22, 2026
1.450% senior notes	595.5		594.5		September 15, 2026
3.375% senior notes	994.2		992.9		October 15, 2026
3.125% senior notes	398.8		398.6		January 15, 2027
2.750% senior notes	746.8		746.1		January 15, 2027
0.450% senior notes (6)	789.1		798.2		January 15, 2027
0.400% senior notes (6)	524.6		530.4		February 15, 2027
3.650% senior notes	644.4		643.3		March 15, 2027
4.125% senior notes (6)	630.4		—		May 16, 2027
3.55% senior notes	746.9		746.3		July 15, 2027
3.600% senior notes	695.8		695.1		January 15, 2028
0.500% senior notes (6)	787.5		796.6		January 15, 2028
1.500% senior notes	647.0		646.5		January 31, 2028
5.500% senior notes	693.3		—		March 15, 2028
5.250% senior notes	643.6		—		July 15, 2028
5.800% senior notes	743.1		—		November 15, 2028
3.950% senior notes	593.4		592.6		March 15, 2029
0.875% senior notes (6)	788.6		797.8		May 21, 2029
3.800% senior notes	1,638.2		1,636.8		August 15, 2029
2.900% senior notes	744.0		743.4		January 15, 2030
2.100% senior notes	742.9		742.2		June 15, 2030
0.950% senior notes (6)	522.5		528.5		October 5, 2030
1.875% senior notes	793.1		792.5		October 15, 2030
2.700% senior notes	694.9		694.4		April 15, 2031
4.625% senior notes (6)	521.7		—		May 16, 2031
2.300% senior notes	692.5		691.9		September 15, 2031
1.000% senior notes (6)	681.0		689.1		January 15, 2032
4.050% senior notes	642.7		642.2		March 15, 2032
5.650% senior notes	790.3		—		March 15, 2033
1.250% senior notes (6)	522.3		528.5		May 21, 2033
5.550% senior notes	840.5		—		July 15, 2033
5.900% senior notes	741.3		—		November 15, 2033
3.700% senior notes	592.4		592.2		October 15, 2049
3.100% senior notes	1,038.5		1,038.3		June 15, 2050
2.950% senior notes	1,023.0		1,022.5		January 15, 2051
Total American Tower Corporation debt	36,142.6		36,307.0

Series 2013-2A securities (7)	—		1,299.7		N/A
Series 2018-1A securities (8)	496.6		496.1		March 15, 2028
Series 2023-1A securities (9)	1,283.4		—		March 15, 2028
Series 2015-2 notes (10)	523.9		523.4		June 16, 2025
Other subsidiary debt (11)	132.3		16.2		Various
Total American Tower subsidiary debt	2,436.2		2,335.4
Finance lease obligations	21.1		27.8
Total	38,599.9		38,670.2
Less current portion of long-term obligations	(3,157.5)		(4,514.2)
Long-term obligations	$	35,442.4	$	34,156.0

(1)Accrues interest at a variable rate.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

(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 June 27, 2023 using borrowings under the 2021 Multicurrency Credit Facility.

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

(5)Repaid in full on June 15, 2023 using borrowings under the 2021 Credit Facility.

(6)Notes are denominated in EUR.

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

(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 March 15, 2053.

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

(11)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) $500.0 million aggregate principal amount of the Company’s 0.600% senior unsecured notes due January 15, 2024, (ii) $1.0 billion aggregate principal amount of the Company’s 5.00% senior unsecured notes due February 15, 2024, (iii) $650.0 million aggregate principal amount of the Company’s 3.375% senior unsecured notes due May 15, 2024 and (iv) 825.0 million EUR in borrowings under the 2021 EUR Three Year Delayed Draw Term Loan (as defined below).

*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 loan broken into components or “componentized” (the “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”) 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 5,035 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 (a) represent a pass-through interest in the components of the Loan corresponding to the 2023 Securities and (b) have an expected life of approximately five years with a final repayment date in March 2053. The Series 2023-1A Securities and the Series 2023-1R Securities have interest rates of 5.490% and 5.735%, respectively.

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

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

of the Loan corresponding to the 2023 Securities prior to the monthly payment date in March 2028, which is the anticipated repayment date for those components.

The AMT Asset Subs may prepay the Loan at any time, provided that prepayment 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.

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 $63.6 million held in the reserve accounts as of September 30, 2023 is classified as restricted cash on the Company’s accompanying condensed consolidated balance sheet.

Repayments of Senior Notes

Repayment of 3.50% Senior Notes—On January 31, 2023, the Company repaid $1.0 billion aggregate principal amount of the Company’s 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.

Repayment of 3.000% Senior Notes—On June 15, 2023, the Company repaid $700.0 million aggregate principal amount of the Company’s 3.000% senior unsecured notes due 2023 (the “3.000% Notes”) upon their maturity. The 3.000% Notes were repaid using borrowings under the 2021 Credit Facility. Upon completion of the repayment, none of the 3.000% Notes remained outstanding.

Offerings 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”). 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.

*4.125% Senior Notes and 4.625% Senior Notes Offering—*On May 16, 2023, the Company completed a registered public offering of 600.0 million EUR ($652.1 million at the date of issuance) aggregate principal amount of 4.125% senior unsecured notes due 2027 (the “4.125% Notes”) and 500.0 million EUR ($543.4 million at the date of issuance) aggregate principal amount of 4.625% senior unsecured notes due 2031 (the “4.625% Notes”). The net proceeds from this offering were approximately 1,089.5 million EUR (approximately $1,184.1 million at the date of issuance), 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.

*5.250% Senior Notes and 5.550% Senior Notes Offering—*On May 25, 2023, the Company completed a registered public offering of $650.0 million aggregate principal amount of 5.250% senior unsecured notes due 2028 (the “5.250% Notes”) and $850.0 million aggregate principal amount of 5.550% senior unsecured notes due 2033 (the “5.550% Notes”). The net proceeds from this offering were approximately $1,481.9 million, after deducting commissions and estimated expenses. The Company used the net proceeds to repay existing indebtedness under the 2021 Multicurrency Credit Facility.

*5.800% Senior Notes and 5.900% Senior Notes Offering—*On September 15, 2023, the Company completed a registered public offering of $750.0 million aggregate principal amount of 5.800% senior unsecured notes due 2028 (the “5.800% Notes”) and $750.0 million aggregate principal amount of 5.900% senior unsecured notes due 2033 (the “5.900% Notes” and, together with the 5.500% Notes, the 5.650% Notes, the 4.125% Notes, the 4.625% Notes, the 5.250% Notes, the 5.550% Notes and the 5.800% Notes, the “2023 Notes”). The net proceeds from this offering were approximately $1,482.8 million, after deducting commissions and estimated expenses. The Company used the net proceeds to repay existing indebtedness under the 2021 Multicurrency Credit Facility.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

The key terms of the 2023 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
4.125% Notes (3)	$	652.1	May 16, 2023	May 16, 2027	4.125%	May 16, 2024	May 16	March 16, 2027
4.625% Notes (3)	$	543.4	May 16, 2023	May 16, 2031	4.625%	May 16, 2024	May 16	February 16, 2031
5.250% Notes	$	650.0	May 25, 2023	July 15, 2028	5.250%	January 15, 2024	January 15 and July 15	June 15, 2028
5.550% Notes	$	850.0	May 25, 2023	July 15, 2033	5.550%	January 15, 2024	January 15 and July 15	April 15, 2033
5.800% Notes	$	750.0	September 15, 2023	November 15, 2028	5.800%	May 15, 2024	May 15 and November 15	October 15, 2028
5.900% Notes	$	750.0	September 15, 2023	November 15, 2033	5.900%	May 15, 2024	May 15 and November 15	August 15, 2033

(1)Accrued and unpaid interest on USD denominated notes is payable in USD semi-annually in arrears and will be computed from the issue date on the basis of a 360-day year comprised of twelve 30-day months. Interest on EUR denominated notes is payable in EUR annually and will be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the notes, beginning on the issue date.

(2)The Company may redeem the 2023 Notes at any time, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2023 Notes plus a make-whole premium, together with accrued interest to the redemption date. If the Company redeems the 2023 Notes on or after the par call date, the Company will not be required to pay a make-whole premium.

(3)The 4.125% Notes and the 4.625% Notes are denominated in EUR; dollar amounts represent the aggregate principal amount at the issuance date.

If the Company undergoes a change of control and corresponding ratings decline, each as defined in the supplemental indenture for the 2023 Notes, the Company may be required to repurchase all of the 2023 Notes at a purchase price equal to 101% of the principal amount of those 2023 Notes, plus accrued and unpaid interest (including additional interest, if any), up to but not including the repurchase date. The 2023 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

Amendments to Bank Facilities—On June 29, 2023, the Company amended its (i) $6.0 billion senior unsecured multicurrency revolving credit facility, as previously amended and restated on December 8, 2021 (the “2021 Multicurrency Credit Facility”), (ii) $4.0 billion senior unsecured revolving credit facility, as previously amended and restated on December 8, 2021, (the “2021 Credit Facility”) and (iii) $1.0 billion unsecured term loan, as previously amended and restated on December 8, 2021, (the “2021 Term Loan”).

These amendments, among other things,

i.extend the maturity dates of the 2021 Multicurrency Credit Facility and the 2021 Credit Facility to July 1, 2026 and July 1, 2028, respectively;

ii.commemorate commitments under the 2021 Multicurrency Credit Facility and the 2021 Credit Facility of $6.0 billion and $4.0 billion, respectively; and

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

iii.replace the London Interbank Offered Rate (“LIBOR”) pricing benchmark with an Adjusted Term Secured Overnight Financing Reserve (“SOFR”) pricing benchmark.

*2021 Multicurrency Credit Facility—*During the nine months ended September 30, 2023, the Company borrowed an aggregate of $2.3 billion and repaid an aggregate of $5.8 billion, including 842.6 million EUR ($919.1 million as of the repayment date), of revolving indebtedness under the Company’s 2021 Multicurrency Credit Facility. The Company used the borrowings to repay outstanding indebtedness, including the 2021 USD Two Year Delayed Draw Term Loan (as defined below), and for general corporate purposes.

*2021 Credit Facility—*During the nine months ended September 30, 2023, the Company borrowed an aggregate of $3.1 billion and repaid an aggregate of $2.1 billion of revolving indebtedness under the Company’s 2021 Credit Facility. The Company used the borrowings to repay outstanding indebtedness, including the 3.50% Notes and the 3.000% Notes, and for general corporate purposes.

*Repayment of 2021 USD Two Year Delayed Draw Term Loan—*On June 27, 2023, the Company repaid all amounts outstanding under its $1.5 billion unsecured term loan entered into in December 2021 (the “2021 USD Two Year Delayed Draw Term Loan”) with borrowings under the 2021 Multicurrency Credit Facility.

As of September 30, 2023, the key terms under the 2021 Multicurrency Credit Facility, the 2021 Credit Facility, the 2021 Term Loan and 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”) were as follows:


	Outstanding Principal Balance (in millions)		Undrawn letters of credit (in millions)		Maturity Date		Current margin over SOFR or EURIBOR (1)		Current commitment fee (2)
2021 Multicurrency Credit Facility	$	261.0	$	3.5	July 1, 2026	(3)	1.125	%	0.110	%
2021 Credit Facility	2,088.4		30.4		July 1, 2028	(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	872.3		N/A		May 28, 2024		1.125	%	N/A

(1)SOFR applies to the USD denominated borrowings under the 2021 Multicurrency Credit Facility, the 2021 Credit Facility and the 2021 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.

India Credit Facilities—During the nine months ended September 30, 2023, the Company increased the borrowing capacity of its working capital facilities in India by 2.8 billion INR (approximately $33.7 million). As of September 30, 2023, the borrowing capacity under the working capital facilities in India is 10.7 billion INR (approximately $129.0 million). As of September 30, 2023, the Company has not borrowed under these facilities.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

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.

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:


	September 30, 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)	$	24.4	—		—	$	29.2	—		—
VIL OCDs	—		$	192.7	—	—		—		—
Liabilities:
Interest rate swap agreements	—		—		—	—		$	6.2	—
Fair value of debt related to interest rate swap agreements (2)	—		—		—	$	(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 and nine months ended September 30, 2023 and 2022, the Company recognized unrealized (losses) gains of $(4.2) million, $4.4 million, $(4.8) million and $(3.4) million, respectively, for equity securities held as of September 30, 2023.

(2)Included in the carrying values of the corresponding debt obligations as of December 31, 2022. As of September 30, 2023, the interest rate swap agreements under the 3.000% Notes were settled.

During the nine months ended September 30, 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. In June 2023, the interest rate swap agreements with certain counterparties under the 3.000% Notes expired upon maturity of the underlying debt. As of September 30, 2023, there were no amounts outstanding under the interest rate swap agreements under the 3.000% Notes.

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 (a) to be repaid by VIL with interest, and (b) convertible, at ATC TIPL’s option, into equity of VIL. If converted, such equity shall be free to trade in the open market beginning on the one year anniversary of the date of issuance of the VIL OCDs. 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 were to 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. In August 2023, the Company amended the agreements governing the VIL OCDs to, among other items, extend the maturity of the first tranche of the VIL OCDs to 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, with the first payment received in September 2023.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

The VIL OCDs are recorded in Prepaid and other current assets in the consolidated balance sheet at fair value. The significant input to the fair value of the VIL OCDs is the lesser of the (i) VIL equity share price underlying the instruments, less a liquidity discount, and (ii) redemption value. 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 and nine months ended September 30, 2023, the Company recognized unrealized gains of $63.6 million and $76.7 million, respectively, for the VIL OCDs held as of September 30, 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 long-lived asset impairments during the three and nine months ended September 30, 2023 or 2022 and there were no significant unobservable inputs used to determine the fair value of long-lived assets during the three and nine months ended September 30, 2023 or 2022.

The Company has undertaken a process to evaluate various strategic alternatives with respect to its India operations, which could include a sale of equity interests in its India operations. As part of this process, the Company has received indications of value from third parties, which are less than carrying value. The Company has incorporated this information as a significant input used to determine the fair value of the India reporting unit as of September 30, 2023. During the three and nine months ended September 30, 2023, the Company recorded goodwill impairments of $322.0 million, as discussed further in note 4.

There were no other items measured at fair value on a nonrecurring basis during the three and nine months ended September 30, 2023 or 2022.

Fair Value of Financial Instruments—The Company’s financial instruments for which the carrying value reasonably approximates fair value at September 30, 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 September 30, 2023 and December 31, 2022, the carrying value of long-term obligations, including the current portion, was $38.6 billion and $38.7 billion, respectively. As of September 30, 2023, the fair value of long-term obligations, including the current portion, was $34.8 billion, of which $28.1 billion was measured using Level 1 inputs and $6.7 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 September 30, 2023 was primarily attributable to increased earnings in certain foreign jurisdictions after adjusting for non-deductible amounts. The increase in the income tax provision during the nine months ended September 30, 2023 was primarily attributable to the reversal of valuation allowances of $79.7 million in certain foreign jurisdictions in the prior year and increased earnings in certain foreign jurisdictions in the current year after adjusting for non-deductible amounts, partially offset by a benefit in the current year from the application of a tax law change in Kenya. The valuation allowance reversal was recognized as a reduction to the income tax provision in the prior year as the net related deferred tax assets were deemed realizable based on changes in facts and circumstances relevant to the assets’ recoverability.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

As of September 30, 2023 and December 31, 2022, the total unrecognized tax benefits that would impact the ETR, if recognized, were approximately $84.2 million and $103.6 million, respectively. The amount of unrecognized tax benefits during the three and nine months ended September 30, 2023 includes (i) additions to the Company’s existing tax positions of $1.8 million and $4.4 million, respectively, (ii) changes due to foreign currency exchange rate fluctuations of $(2.1) million and $1.4 million, respectively, (iii) reductions due to settlements of $1.1 million and $12.1 million, respectively, (iv) reductions due to the expiration of statue of limitations of $0.8 million and $1.5 million, respectively, and (v) reductions due to credits available against existing tax positions of $11.6 million for the nine months ended September 30, 2023. 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 $15.4 million.

The Company recorded the following penalties and income tax-related interest expense during the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Penalties and income tax-related interest expense	$	3.8	$	3.7	$	9.8	$	15.2

As of September 30, 2023 and December 31, 2022, the total amount of accrued income tax related interest and penalties included in the consolidated balance sheets were $45.8 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”) 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 September 30, 2023, the Company had the ability to grant stock-based awards with respect to an aggregate of 4.1 million shares of common stock under the 2007 Plan. In addition, the Company maintains an employee stock purchase plan (the “ESPP”) pursuant to which eligible employees may purchase shares of the Company’s common stock on the last day of each bi-annual offering period at a 15% discount from the lower of the closing market value on the first or last day of such offering period. The offering periods run from June 1 through November 30 and from December 1 through May 31 of each year.

During the three and nine months ended September 30, 2023 and 2022, the Company recorded the following stock-based compensation expense in selling, general, administrative and development expense:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Stock-based compensation expense	$	43.1	$	39.2	$	158.0	$	138.1

Stock Options—As of September 30, 2023, there was no unrecognized compensation expense related to unvested stock options.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

The Company’s option activity for the nine months ended September 30, 2023 was as follows (shares disclosed in full amounts):


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

Exercised						(48,135)
Forfeited						—
Expired						—
Outstanding as of September 30, 2023						807,019

*Restricted Stock Units—*As of September 30, 2023, total unrecognized compensation expense related to unvested RSUs granted under the 2007 Plan was $212.0 million and is expected to be recognized over a weighted average period of approximately two years. Vesting of RSUs is subject generally to the employee’s continued employment or death, disability or qualified retirement (each as defined in the applicable RSU award agreement).

*Performance-Based Restricted Stock Units—*During the nine months ended September 30, 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.

During the nine months ended September 30, 2023, the Company’s Compensation Committee granted an aggregate of 19,132 PSUs to certain non-executive employees (the “Retention PSUs”) and established the performance metrics for these awards. Target parameters were established for a one-year performance period and will be used to calculate the number of shares that will be issuable when the awards vest, which may be either zero or 100% of the target amount. At the end of the one-year performance period, the number of shares that vest will depend on the achievement against the pre-established performance goals. The Retention PSUs will be paid out in common stock at the end of performance period, subject generally to the employee’s continued employment, death or disability (each as defined in the applicable award agreement). The Retention PSUs will accrue dividend equivalents prior to vesting, which will be paid out only in respect of shares that actually vest. The Company expects to recognize approximately $3.5 million in stock-based compensation expense related to the Retention PSUs.

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 nine months ended September 30, 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)	952,045	137,816
Vested and Released (3)	(544,828)	(79,232)
Forfeited	(63,574)	(188)
Outstanding as of September 30, 2023	1,726,522	334,864
Vested and deferred as of September 30, 2023 (4)	30,259	—

(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, and target number of shares issuable at the end of the one-year performance period for the Retention PSUs, or 19,132 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.

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

During the three and nine months ended September 30, 2023, the Company recorded $9.6 million and $26.8 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 September 30, 2023 was $9.0 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.

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 nine months ended September 30, 2023, the Company received an aggregate of $12.3 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 September 30, 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 nine months ended September 30, 2023, there were no repurchases under either of the Buyback Programs. As of September 30, 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 September 30, 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 nine months ended September 30, 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

September 20, 2023	October 27, 2023	October 11, 2023	$	1.62	$	755.2
May 24, 2023	July 10, 2023	June 16, 2023	$	1.57	$	731.8
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 nine months ended September 30, 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
September 21, 2022	October 26, 2022	October 11, 2022	$	1.47	$	684.4
May 18, 2022	July 8, 2022	June 17, 2022	$	1.43	$	665.8
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 September 30, 2023, the amount accrued for distributions payable related to unvested restricted stock units was $18.7 million. During the nine months ended September 30, 2023 and 2022, the Company paid $7.4 million and $6.8 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 September 30, 2023, ATC Europe consists of the Company’s operations in France, Germany 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 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 September 30, 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 nine months ended September 30, 2023, the Company’s U.S. data center business had distributions of $34.5 million related to the outstanding Stonepeak mandatorily convertible preferred equity (the “Stonepeak Preferred Distributions”). As of September 30, 2023, the amount accrued for Stonepeak Preferred Distributions was $11.6 million.

During the nine months ended September 30, 2023, AT Iberia C.V., one of the Company’s subsidiaries in Spain, declared and paid a dividend of 48.0 million EUR (approximately $53.0 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.

The changes in noncontrolling interests were as follows:


	Nine Months Ended September 30,
	2023		2022
Balance as of January 1,	$	6,836.1	$	3,988.4


Stonepeak Transaction (1)	—		2,500.0


Net loss attributable to noncontrolling interests	(44.6)		(36.3)
Foreign currency translation adjustment attributable to noncontrolling interests, net of tax	(58.5)		(458.6)
Contributions from noncontrolling interest holders	11.6		52.6
Distributions to noncontrolling interest holders (2)	(43.4)		(9.3)

Balance as of September 30,	$	6,701.2	$	6,036.8

(1)Represents the impact of contributions received from Stonepeak described above on Noncontrolling interests as of September 30, 2022. Reflected within Contributions from noncontrolling interest holders in the consolidated statements of equity.

(2)Primarily includes the Stonepeak Preferred Distributions.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022


Net income attributable to American Tower Corporation common stockholders	$	586.9	$	839.7	$	1,398.4	$	2,449.6
Basic weighted average common shares outstanding	466,168		465,594		466,000		460,141
Dilutive securities	993		1,207		1,034		1,219
Diluted weighted average common shares outstanding	467,161		466,801		467,034		461,360
Basic net income attributable to American Tower Corporation common stockholders per common share	$	1.26	$	1.80	$	3.00	$	5.32
Diluted net income attributable to American Tower Corporation common stockholders per common share	$	1.26	$	1.80	$	2.99	$	5.31

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 September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
Restricted stock units	317	—	6	88

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 11,200 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 1,800 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 September 30, 2023, the Company has purchased an aggregate of approximately 600 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

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

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.

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 nine months ended September 30, 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 in Other operating expenses in the consolidated statements of operations; 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 recognizes integration costs in the period in which they are incurred and services are received in Other operating expenses in the consolidated statements of operations.

During the three and nine months ended September 30, 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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Acquisition, disposition and merger related expenses	$	1.1	$	29.0	$	7.7	$	38.2
Integration costs	$	3.0	$	14.0	$	13.7	$	38.8

During the nine months ended September 30, 2022, the Company also recorded benefits of $8.5 million, related to pre-acquisition contingencies and settlements. The three and nine months ended September 30, 2022 included acquisition and merger-related costs associated with the Stonepeak Transaction.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

2023 Transactions

The estimated aggregate impact of the acquisitions completed in 2023 on the Company’s revenues and gross margin for the three and nine months ended September 30, 2023 was not material to the Company’s operating results.

Other Acquisitions—During the nine months ended September 30, 2023, the Company acquired a total of 69 communications sites, as well as other communications infrastructure assets, in the United States, Canada, France, Poland and Spain for an aggregate purchase price of $65.7 million. These acquisitions were accounted for as asset acquisitions.

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	$	5.1

Property and equipment	36.6
Intangible assets (1):
Tenant-related intangible assets	22.0
Network location intangible assets	3.1

Other non-current assets	1.7
Current liabilities	(0.6)

Other non-current liabilities	(2.2)
Net assets acquired	65.7

Fair value of net assets acquired	65.7


Purchase price	$	65.7

(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.

In addition to the acquisitions discussed above, on September 29, 2023, the Company purchased 56 towers in connection with the AT&T transaction described in note 13 for an aggregate purchase price of $39.0 million.

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 September 30, 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 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

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

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

Summarized financial information concerning the Company’s reportable segments for the three and nine months ended September 30, 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 September 30, 2023	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers
Segment revenues	$	1,324.5	$	302.3	$	293.7	$	200.4	$	459.6	$	211.9	$	2,792.4	$	26.2			$	2,818.6
Segment operating expenses	214.3		179.0		96.8		78.8		144.3		90.1		803.3		12.5				815.8
Segment gross margin	1,110.2		123.3		196.9		121.6		315.3		121.8		1,989.1		13.7				2,002.8
Segment selling, general, administrative and development expense (1)	40.2		9.8		13.1		15.1		28.9		17.9		125.0		6.1				131.1
Segment operating profit	$	1,070.0	$	113.5	$	183.8	$	106.5	$	286.4	$	103.9	$	1,864.1	$	7.6			$	1,871.7
Stock-based compensation expense																	$	43.1	43.1
Other selling, general, administrative and development expense																	57.7		57.7
Depreciation, amortization and accretion																	762.9		762.9
Other expense (2)																	365.0		365.0
Income from continuing operations before income taxes																			$	643.0
Total assets	$	26,491.3	$	3,698.7	$	4,172.8	$	11,292.6	$	8,844.6	$	10,508.4	$	65,008.4	$	79.2	$	565.4	$	65,653.0

(1)Segment selling, general, administrative and development expenses exclude stock-based compensation expense of $43.1 million.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

(2)Primarily includes interest expense, partially offset by gains from foreign currency exchange rate fluctuations. Three months ended September 30, 2023 also includes $331.8 million in impairment charges, including $322.0 million of goodwill impairment charges in India as further discussed in note 4.


	Property												Total Property		Services		Other		Total
Three Months Ended September 30, 2022	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers
Segment revenues	$	1,259.2	$	249.2	$	303.4	$	184.0	$	420.4	$	193.7	$	2,609.9	$	61.6			$	2,671.5
Segment operating expenses	219.0		171.8		119.8		83.0		131.5		83.7		808.8		27.7				836.5
Segment gross margin	1,040.2		77.4		183.6		101.0		288.9		110.0		1,801.1		33.9				1,835.0
Segment selling, general, administrative and development expense (1)	48.0		10.9		19.4		12.4		26.7		15.8		133.2		5.5				138.7
Segment operating profit	$	992.2	$	66.5	$	164.2	$	88.6	$	262.2	$	94.2	$	1,667.9	$	28.4			$	1,696.3
Stock-based compensation expense																	$	39.2	39.2
Other selling, general, administrative and development expense																	53.3		53.3
Depreciation, amortization and accretion																	898.1		898.1
Other income (2)																	(150.1)		(150.1)
Income from continuing operations before income taxes																			$	855.8
Total assets	$	26,749.3	$	4,799.6	$	4,592.6	$	10,513.7	$	8,477.7	$	10,750.8	$	65,883.7	$	96.9	$	532.2	$	66,512.8

(1)Segment selling, general, administrative and development expenses exclude stock-based compensation expense of $39.2 million.

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

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
Nine Months Ended September 30, 2023	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers
Segment revenues	$	3,915.3	$	815.1	$	931.9	$	590.3	$	1,363.1	$	619.8	$	8,235.5	$	122.0			$	8,357.5
Segment operating expenses	636.5		527.0		328.1		229.2		422.0		257.6		2,400.4		48.8				2,449.2
Segment gross margin	3,278.8		288.1		603.8		361.1		941.1		362.2		5,835.1		73.2				5,908.3
Segment selling, general, administrative and development expense (1)	122.7		36.0		53.2		44.8		82.1		54.0		392.8		17.1				409.9
Segment operating profit	$	3,156.1	$	252.1	$	550.6	$	316.3	$	859.0	$	308.2	$	5,442.3	$	56.1			$	5,498.4
Stock-based compensation expense																	$	158.0	158.0
Other selling, general, administrative and development expense																	172.3		172.3
Depreciation, amortization and accretion																	2,321.6		2,321.6
Other expense (2)																	1,360.4		1,360.4
Income from continuing operations before income taxes																			$	1,486.1

(1) Segment selling, general, administrative and development expenses exclude stock-based compensation expense of $158.0 million.

(2) Primarily includes interest expense, partially offset by gains from foreign currency exchange rate fluctuations. Nine months ended September 30, 2023 also includes a net loss of $78.9 million on the sales of Mexico Fiber and ATC Poland and $399.1 million in impairment charges, including $322.0 million of goodwill impairment charges in India, as further discussed in note 4.

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
Nine Months Ended September 30, 2022	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers
Segment revenues	$	3,727.5	$	845.7	$	856.7	$	561.3	$	1,264.9	$	569.1	$	7,825.2	$	180.9			$	8,006.1
Segment operating expenses	631.4		528.6		329.4		250.6		395.0		239.3		2,374.3		84.5				2,458.8
Segment gross margin	3,096.1		317.1		527.3		310.7		869.9		329.8		5,450.9		96.4				5,547.3
Segment selling, general, administrative and development expense (1)	134.3		64.9		63.9		41.4		81.4		47.7		433.6		16.6				450.2
Segment operating profit	$	2,961.8	$	252.2	$	463.4	$	269.3	$	788.5	$	282.1	$	5,017.3	$	79.8			$	5,097.1
Stock-based compensation expense																	$	138.1	138.1
Other selling, general, administrative and development expense																	159.7		159.7
Depreciation, amortization and accretion																	2,540.4		2,540.4
Other income (2)																	(220.4)		(220.4)
Income from continuing operations before income taxes																			$	2,479.3

(1) Segment selling, general, administrative and development expenses exclude stock-based compensation expense of $138.1 million.

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

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