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)

June 30, 2024December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$2,492.1$1,973.3
Restricted cash126.5120.1
Accounts receivable, net712.3669.7
Prepaid and other current assets783.2946.9
Total current assets4,114.13,710.0
PROPERTY AND EQUIPMENT, net19,927.719,788.8
GOODWILL12,483.112,639.0
OTHER INTANGIBLE ASSETS, net15,759.116,520.7
DEFERRED TAX ASSET139.2179.1
DEFERRED RENT ASSET3,649.53,521.8
RIGHT-OF-USE ASSET9,012.18,878.8
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS753.0789.4
TOTAL$65,837.8$66,027.6
LIABILITIES
CURRENT LIABILITIES:
Accounts payable$206.0$258.7
Accrued expenses1,166.21,280.6
Distributions payable778.1906.2
Accrued interest314.1387.0
Current portion of operating lease liability703.4794.6
Current portion of long-term obligations3,329.23,187.5
Unearned revenue391.7434.7
Total current liabilities6,888.77,249.3
LONG-TERM OBLIGATIONS35,639.235,734.0
OPERATING LEASE LIABILITY7,717.77,438.7
ASSET RETIREMENT OBLIGATIONS2,562.32,158.2
DEFERRED TAX LIABILITY1,399.31,361.4
OTHER NON-CURRENT LIABILITIES1,207.11,220.6
Total liabilities55,414.355,162.2
COMMITMENTS AND CONTINGENCIES
EQUITY (shares in thousands):
Common stock: $0.01 par value; 1,000,000 shares authorized; 478,081 and 477,300 shares issued; and 467,077 and 466,296 shares outstanding, respectively4.84.8
Additional paid-in capital14,955.014,872.9
Distributions in excess of earnings(3,340.8)(3,638.8)
Accumulated other comprehensive loss(6,461.8)(5,739.5)
Treasury stock (11,004 shares at cost)(1,301.2)(1,301.2)
Total American Tower Corporation equity3,856.04,198.2
Noncontrolling interests6,567.56,667.2
Total equity10,423.510,865.4
TOTAL$65,837.8$66,027.6

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 June 30,Six Months Ended June 30,
2024202320242023
REVENUES:
Property$2,852.9$2,728.6$5,656.8$5,443.1
Services47.443.177.695.8
Total operating revenues2,900.32,771.75,734.45,538.9
OPERATING EXPENSES:
Costs of operations (exclusive of items shown separately below):
Property799.9810.11,574.31,597.1
Services22.017.235.936.3
Depreciation, amortization and accretion561.7764.61,111.11,558.7
Selling, general, administrative and development expense234.3244.4491.3508.3
Other operating (income) expense(1.9)61.70.9189.2
Total operating expenses1,616.01,898.03,213.53,889.6
OPERATING INCOME1,284.3873.72,520.91,649.3
OTHER INCOME (EXPENSE):
Interest income43.730.691.761.4
Interest expense(365.4)(348.1)(732.1)(688.3)
Loss on retirement of long-term obligations—(0.3)—(0.3)
Other income (expense) (including foreign currency (losses) gains of $(21.7), $(107.6), $105.9 and $(191.7) respectively)65.8(81.2)178.8(179.0)
Total other expense(255.9)(399.0)(461.6)(806.2)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES1,028.4474.72,059.3843.1
Income tax provision(120.0)(13.2)(229.2)(66.6)
NET INCOME908.4461.51,830.1776.5
Net (income) loss attributable to noncontrolling interests(8.1)14.2(12.4)35.0
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON STOCKHOLDERS$900.3$475.7$1,817.7$811.5
NET INCOME PER COMMON SHARE AMOUNTS:
Basic net income attributable to American Tower Corporation common stockholders$1.93$1.02$3.89$1.74
Diluted net income attributable to American Tower Corporation common stockholders$1.92$1.02$3.89$1.74
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in thousands):
BASIC467,038466,087466,778465,915
DILUTED467,781466,979467,793466,939

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

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Net income$908.4$461.5$1,830.1$776.5
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax (benefit) expense of $(0.1), $0.2, $(0.3), and $0.2, respectively(410.8)(13.6)(842.0)218.5
Other comprehensive (loss) income(410.8)(13.6)(842.0)218.5
Comprehensive income497.6447.9988.1995.0
Comprehensive loss (income) attributable to noncontrolling interests18.9(6.7)107.3(25.8)
Comprehensive income attributable to American Tower Corporation stockholders$516.5$441.2$1,095.4$969.2

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

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

Six Months Ended June 30,
20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$1,830.1$776.5
Adjustments to reconcile net income to cash provided by operating activities
Depreciation, amortization and accretion1,111.11,558.7
Stock-based compensation expense111.2114.9
Loss on early retirement of long-term obligations—0.3
Other non-cash items reflected in statements of operations(34.5)366.0
Increase in net deferred rent balances(152.7)(232.8)
Right-of-use asset and Operating lease liability, net31.3(62.7)
Changes in unearned revenue(32.3)46.5
Increase in assets(119.2)(238.1)
Decrease in liabilities(122.9)(49.4)
Cash provided by operating activities2,622.12,279.9
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for purchase of property and equipment and construction activities(721.9)(882.8)
Payments for acquisitions, net of cash acquired(55.0)(91.2)
Proceeds from sale of short-term investments and other non-current assets251.56.9
Deposits and other0.1250.6
Cash used for investing activities(525.3)(716.5)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings, net8.7146.2
Borrowings under credit facilities5,097.94,780.0
Proceeds from issuance of senior notes, net2,374.14,182.3
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(7,189.7)(10,409.6)
Distributions to noncontrolling interest holders(189.2)(22.7)
Contributions from noncontrolling interest holders102.51.9
Proceeds from stock options and employee stock purchase plan23.710.3
Distributions paid on common stock(1,559.2)(1,461.3)
Deferred financing costs and other financing activities(86.9)(100.9)
Cash used for financing activities(1,418.1)(1,573.8)
Net effect of changes in foreign currency exchange rates on cash and cash equivalents, and restricted cash(153.5)19.1
NET INCREASE IN CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH525.28.7
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD2,093.42,140.7
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD$2,618.6$2,149.4
CASH PAID FOR INCOME TAXES (NET OF REFUNDS OF $9.2 AND $21.9, RESPECTIVELY)$179.2$131.1
CASH PAID FOR INTEREST$803.1$681.4
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchases of property and equipment under finance leases and perpetual easements$8.3$16.2
Decrease in accounts payable and accrued expenses for purchases of property and equipment and construction activities$(56.4)$(65.1)
Distributions to noncontrolling interest holders$(49.9)$—
Contributions from noncontrolling interest holders$49.9$—
Contribution to equity method investment$14.6$—

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 StockTreasury StockAdditional Paid-in CapitalAccumulated Other Comprehensive LossDistributions in Excess of EarningsNoncontrolling InterestsTotal Equity
Three Months Ended June 30, 2023 and 2024Issued SharesAmountSharesAmount
BALANCE, APRIL 1, 2023477,042$4.8(11,004)$(1,301.2)$14,725.6$(5,526.1)$(2,496.5)$6,843.7$12,250.3
Stock-based compensation related activity440.0——45.4———45.4
Issuance of common stock-stock purchase plan520.0——8.2———8.2
Foreign currency translation adjustment, net of tax—————(34.5)—20.9(13.6)
Contributions from noncontrolling interest holders———————10.510.5
Distributions to noncontrolling interest holders———————(20.1)(20.1)
Common stock distributions declared——————(735.0)—(735.0)
Net income (loss)——————475.7(14.2)461.5
BALANCE, JUNE 30, 2023477,138$4.8(11,004)$(1,301.2)$14,779.2$(5,560.6)$(2,755.8)$6,840.8$12,007.2
BALANCE, APRIL 1, 2024477,968$4.8(11,004)$(1,301.2)$14,903.4$(6,078.0)$(3,481.2)$6,613.9$10,661.7
Stock-based compensation related activity610.0——42.9———42.9
Issuance of common stock-stock purchase plan520.0——8.7———8.7
Foreign currency translation adjustment, net of tax—————(383.8)—(27.0)(410.8)
Contributions from noncontrolling interest holders———————13.513.5
Distributions to noncontrolling interest holders———————(41.0)(41.0)
Common stock distributions declared——————(759.9)—(759.9)
Net income——————900.38.1908.4
BALANCE, JUNE 30, 2024478,081$4.8(11,004)$(1,301.2)$14,955.0$(6,461.8)$(3,340.8)$6,567.5$10,423.5
Common StockTreasury StockAdditional Paid-in CapitalAccumulated Other Comprehensive LossDistributions in Excess of EarningsNoncontrolling InterestsTotal Equity
Six Months Ended June 30, 2023 and 2024Issued SharesAmountSharesAmount
BALANCE, JANUARY 1, 2023476,623$4.8(11,004)$(1,301.2)$14,689.0$(5,718.3)$(2,101.9)$6,836.1$12,408.5
Stock-based compensation related activity4630.0——82.0———82.0
Issuance of common stock- stock purchase plan520.0——8.2———8.2
Foreign currency translation adjustment, net of tax—————157.7—60.8218.5
Contributions from noncontrolling interest———————10.510.5
Distributions to noncontrolling interest holders———————(31.6)(31.6)
Common stock distributions declared——————(1,465.4)—(1,465.4)
Net income (loss)——————811.5(35.0)776.5
BALANCE, JUNE 30, 2023477,138$4.8(11,004)$(1,301.2)$14,779.2$(5,560.6)$(2,755.8)$6,840.8$12,007.2
BALANCE, JANUARY 1, 2024477,300$4.8(11,004)$(1,301.2)$14,872.9$(5,739.5)$(3,638.8)$6,667.2$10,865.4
Stock-based compensation related activity7290.0——73.4———73.4
Issuance of common stock- stock purchase plan520.0——8.7———8.7
Foreign currency translation adjustment, net of tax—————(722.3)—(119.7)(842.0)
Contributions from noncontrolling interest holders———————152.4152.4
Distributions to noncontrolling interest holders———————(144.8)(144.8)
Common stock distributions declared——————(1,519.7)—(1,519.7)
Net income——————1,817.712.41,830.1
BALANCE, JUNE 30, 2024478,081$4.8(11,004)$(1,301.2)$14,955.0$(6,461.8)$(3,340.8)$6,567.5$10,423.5

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, 2023 (the “2023 Form 10-K”). The results of operations for the three and six months ended June 30, 2024 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 June 30, 2024, 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 interest) and (iii) a controlling 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 June 30, 2024, 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 six months ended June 30, 2024 and 2023.

*Pending ATC TIPL Transaction—*On January 4, 2024, the Company, through its subsidiaries, ATC Asia Pacific Pte. Ltd. and ATC Telecom Infrastructure Private Limited (“ATC TIPL”), entered into an agreement with Data Infrastructure Trust (“DIT”), an infrastructure investment trust sponsored by an affiliate of Brookfield Asset Management, pursuant to which DIT will acquire a 100% ownership interest in ATC TIPL (the “Pending ATC TIPL Transaction”). Subject to certain pre-closing terms, total aggregate consideration would potentially represent up to approximately 210 billion Indian Rupees (“INR”) (approximately $2.5 billion), including the value of the VIL OCDs and the VIL Shares (each as defined and further discussed in note 7), payments on certain existing customer receivables, the repayment of existing intercompany debt and the repayment, or assumption, of the Company’s existing term loan in India, by DIT. During the six months ended June 30, 2024, the Company sold the VIL Shares and the remaining VIL OCDs (each as discussed in note 7) and ATC TIPL distributed approximately 27.2 billion INR (approximately $325.9 million) to the Company. ATC TIPL expects to make a final distribution of approximately 2.4 billion INR (approximately $28.5 million), which includes the satisfaction of the economic benefit associated with the rights to payments on certain existing customer receivables. Each such distribution will be deducted from the total aggregate consideration to be received by the Company at closing. The Pending ATC TIPL Transaction is expected to close in the second half of 2024, subject to customary closing conditions, including government and regulatory approval.

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 14.

Significant Accounting Policies—The Company’s significant accounting policies are described in note 1 to the Company’s consolidated financial statements included in the 2023 Form 10-K. There have been no material changes to the Company’s significant accounting policies during the six months ended June 30, 2024, other than those noted below.

Property and Equipment—The Company finalized its review of the estimated useful lives of its tower assets during the six months ended June 30, 2024. The Company now has over 20 years of operating history, and determined that it should modify its current estimates for asset lives based on its historical operating experience. The Company retained an independent consultant to assist the Company in completing this review and analysis. The Company previously depreciated its towers on a straight-line basis over the shorter of the term of the underlying ground lease (including

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

renewal options) taking into account residual value or the estimated useful life of the tower, which the Company had historically estimated to be 20 years. The Company determined that the estimated useful life of its tower assets is 30 years, before taking into account residual value. Additionally, certain of 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. The Company accounted for the changes in the useful lives as a change in accounting estimate under ASC 250 Accounting Changes and Error Corrections, which were recorded prospectively beginning on January 1, 2024. On January 1, 2024, the Company began depreciating its towers and related intangible assets on a straight-line basis over the remaining estimated useful life of the tower, taking into account the extended useful life and residual value. The extension of the asset lives (i) resulted in an approximately $515 million increase in the right of use asset, as additional renewal options may be included, with an offsetting adjustment made to increase the related operating lease liability and (ii) is expected to result in an estimated $730 million decrease in depreciation and amortization expense for the year ended December 31, 2024.

Asset Retirement Obligations—The Company finalized its review of the estimated settlement dates for its asset retirement obligations during the six months ended June 30, 2024. The Company now has over 20 years of operating history, and determined that it should modify its current estimated settlement dates based on its historical operating experience, management’s intent with respect to the assets, and the assets’ estimated useful lives. Based on its review and analysis, the Company concluded that a revision in the estimated settlement dates for its asset retirement obligations was appropriate. The Company accounted for the change in estimated settlement dates as a change in accounting estimate under ASC 250 Accounting Changes and Error Corrections, which was recorded prospectively beginning on January 1, 2024. The extension in the estimated settlement dates (i) resulted in a $470 million increase in the asset retirement obligation liability, with an offsetting adjustment made to the related long-lived tangible asset and an $875 million increase in the estimated undiscounted future cash outlay for asset retirement obligations, and (ii) is expected to result in an estimated $75 million decrease in accretion expense for the year ended December 31, 2024.

*Adoption of Highly Inflationary Accounting in Ghana—*The Ghanaian economy was deemed to be highly inflationary and, as a result, the Company adopted highly inflationary accounting as of January 1, 2024 for its subsidiary in Ghana. Under highly inflationary accounting, the functional currency of its subsidiary in Ghana will become the U.S. Dollar. All monetary and non-monetary assets and liabilities will be remeasured at the U.S. Dollar to Ghanaian Cedis exchange rate of 1 to 11.95 as of December 31, 2023. These amounts will become the new basis for those assets and liabilities as of January 1, 2024. Non-monetary assets and liabilities, as well as the corresponding income statement activities such as depreciation, amortization and equity, will continue to be measured at the historical exchange rate on December 31, 2023. Gains and losses on foreign currency arising in connection with the remeasurement of local currency denominated monetary assets and liabilities for foreign operating subsidiaries in economies that are deemed to be highly inflationary are reflected in Other expense in the consolidated statements of operations. This change is not expected to have a material impact on the Company’s financial statements, as Ghana’s assets and revenue are approximately 1% and 1% of consolidated assets and revenue, respectively.

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:

Six Months Ended June 30,
20242023
Cash and cash equivalents$2,492.1$2,015.7
Restricted cash126.5133.7
Total cash, cash equivalents and restricted cash$2,618.6$2,149.4

Revenue—The Company’s revenue is derived from leasing the right to use its communications sites, the land on which the sites are located, the land underlying its customers’ sites 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.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

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 six months ended June 30, 2024.

Services revenue—The Company offers tower-related services in the United States. These services include site application, zoning and permitting (“AZP”), structural and mount analyses, and construction management. There is a single performance obligation related to AZP and construction management, and revenue is recognized over time based on milestones achieved, which are determined based on costs expected to be incurred. Structural and mount analyses services may have more than one performance obligation, contingent upon the number of contracted services. Revenue is recognized at the point in time the services are completed.

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

Three Months Ended June 30, 2024U.S. & CanadaAsia-PacificAfricaEuropeLatin AmericaData CentersTotal
Non-lease property revenue$77.2$2.2$6.2$5.2$27.6$32.8$151.2
Services revenue47.4—————47.4
Total non-lease revenue$124.6$2.2$6.2$5.2$27.6$32.8$198.6
Property lease revenue1,238.2358.7287.7198.0421.1198.02,701.7
Total revenue$1,362.8$360.9$293.9$203.2$448.7$230.8$2,900.3
Three Months Ended June 30, 2023U.S. & CanadaAsia-PacificAfricaEuropeLatin AmericaData CentersTotal
Non-lease property revenue$83.9$2.4$5.9$4.1$28.5$28.3$153.1
Services revenue43.1—————43.1
Total non-lease revenue$127.0$2.4$5.9$4.1$28.5$28.3$196.2
Property lease revenue1,219.3259.3315.3194.1410.9176.62,575.5
Total revenue$1,346.3$261.7$321.2$198.2$439.4$204.9$2,771.7
Six Months Ended June 30, 2024U.S. & CanadaAsia-PacificAfricaEuropeLatin AmericaData CentersTotal
Non-lease property revenue$150.1$4.4$12.3$8.7$56.3$64.4$296.2
Services revenue77.6—————77.6
Total non-lease revenue$227.7$4.4$12.3$8.7$56.3$64.4$373.8
Property lease revenue2,476.0683.1573.6399.0837.9391.05,360.6
Total revenue$2,703.7$687.5$585.9$407.7$894.2$455.4$5,734.4
Six Months Ended June 30, 2023U.S. & CanadaAsia-PacificAfricaEuropeLatin AmericaData CentersTotal
Non-lease property revenue$154.9$4.7$12.6$7.5$69.8$56.6$306.1
Services revenue95.8—————95.8
Total non-lease revenue$250.7$4.7$12.6$7.5$69.8$56.6$401.9
Property lease revenue2,435.9508.1625.6382.4833.7351.35,137.0
Total revenue$2,686.6$512.8$638.2$389.9$903.5$407.9$5,538.9

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Property revenue for the three months ended June 30, 2024 and 2023 includes straight-line revenue of $73.7 million and $120.8 million, respectively. Property revenue for the six months ended June 30, 2024 and 2023 includes straight-line revenue of $152.7 million and $232.8 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 three and six months ended June 30, 2023, the Company deferred recognition of revenue of approximately $31.7 million and $64.7 million, respectively, related to a customer in India. During the three and six months ended June 30, 2024, the Company recognized approximately $66.7 million and $95.7 million, respectively, of this previously deferred revenue. As of June 30, 2024, the Company has fully recognized this previously deferred revenue related to a customer in India.

Stonepeak Development Partnership— During the three months ended June 30, 2024, the Company entered into an agreement with Stonepeak (as defined in note 11) to form a joint venture to construct a new data center in Denver, CO (the “Stonepeak Development Partnership”). At formation, the Company contributed assets with a value of $14.6 million to the Stonepeak Development Partnership and acquired a minority ownership interest (Stonepeak holds the controlling interests). The Company accounts for the Stonepeak Development Partnership as an equity method investment. Under this method, investments are recorded at cost, and are adjusted for the Company’s share of the entities’ income or loss and for distributions and contributions. The investment is recorded in Other non-current assets in the consolidated balance sheets.

Accounting Standards Updates—In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance, which is intended to improve reportable segment disclosure requirements, primarily through additional disclosures about significant segment expenses. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued guidance which requires public entities to provide enhanced income tax disclosures on an annual basis. The new guidance requires an expanded rate reconciliation and the disaggregation of cash taxes paid by U.S. federal, U.S. state and foreign jurisdictions. The updated guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

SEC Rule Changes— In March 2024, the SEC issued Final Rule No. 33-11275, “The Enhancement and Standardization of Climate-Related Disclosures for Investors.” If such rule remains in effect, the rule will require registrants to provide certain climate-related information in their registration statements and annual reports. The rule requires registrants to provide climate related disclosures, including, but not limited to, (i) material Scope 1 and Scope 2 greenhouse gas emissions, (ii) governance and oversight of material climate-related risks, (iii) the material impact of climate risks on the registrant’s strategy, business model and outlook, (iv) risk management processes for material climate-related risks and (v) material climate targets and goals. The rule also requires disclosure of (x) financial statement effects of severe weather events and other natural conditions, (y) carbon offset and renewable energy credit information and (z) the impact of severe weather events and other natural conditions on estimates and assumptions. Disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2025. In April 2024, the SEC issued an order staying implementation of such rule pending the resolution of certain challenges. The outcome of ongoing litigation is currently unknown. The Company is currently evaluating the potential impact of such rule on its consolidated financial statements and disclosures.

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
June 30, 2024December 31, 2023
Prepaid assets$111.4$93.4
Prepaid income tax151.2102.9
Unbilled receivables362.7323.2
Value added tax and other consumption tax receivables41.979.8
Other miscellaneous current assets (1)116.0347.6
Prepaid and other current assets$783.2$946.9

(1)As of December 31, 2023, 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 six months ended June 30, 2024, the Company made no changes to the methods described in note 4 to its consolidated financial statements included in the 2023 Form 10-K. As of June 30, 2024, 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.

If incentives are present in the Company’s leases, they are evaluated to determine proper treatment and, to the extent present, are recorded in Other current assets and Other non-current assets in the consolidated balance sheets and amortized on a straight line basis over the corresponding lease term as a non-cash reduction to revenue. As of June 30, 2024, the remaining weighted average amortization period of the Company’s lease incentives was 10 years. As of June 30, 2024, Other current assets and Other non-current assets include $35.8 million and $333.0 million, respectively, for lease incentives.

Lessor— Historically, the Company has been able to successfully renew its applicable leases as needed to ensure continuation of its revenue. Accordingly, the Company assumes that it will have access to the communications infrastructure or ground space underlying its sites when calculating future minimum rental receipts through the end of the respective terms. Future minimum rental receipts expected under non-cancellable operating lease agreements as of June 30, 2024 were as follows:

Fiscal YearAmount (1) (2)
Remainder of 2024$4,158.7
20257,845.4
20267,341.0
20277,112.4
20285,793.3
Thereafter24,931.3
Total$57,182.1

(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 2023 Form 10-K. There were no material impairments recorded related to these assets during the three and six months ended June 30, 2024 and 2023.

The Company leases certain land, buildings, equipment and office space under operating leases and land and improvements, towers, equipment and vehicles under finance leases. As of June 30, 2024, operating lease assets were

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

included in Right-of-use asset and finance lease assets were included in Property and equipment, net in the consolidated balance sheet. During the six months ended June 30, 2024, there were no material changes in the terms and provisions of the Company’s operating leases in which the Company is a lessee, other than those related to the change in estimated useful lives as described in note 1. As a result of the change in estimated useful lives of its assets, the Company reviewed its lease portfolio to determine whether additional renewal options were likely to be exercised. The Company concluded that these incremental renewals were lease modifications and has accounted for them accordingly. The extension of the asset lives resulted in an approximately $515 million increase in the right of use asset, as additional renewal options may be included, with an offsetting adjustment made to increase the related operating lease liability. There were no material changes in finance lease assets and liabilities during the six months ended June 30, 2024.

Information about other lease-related balances is as follows:

As of
June 30, 2024December 31, 2023
Operating leases:
Right-of-use asset$9,012.1$8,878.8
Current portion of lease liability$703.4$794.6
Lease liability7,717.77,438.7
Total operating lease liability$8,421.1$8,233.3

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

As of
June 30, 2024December 31, 2023
Operating leases:
Weighted-average remaining lease term (years) (1)13.411.6
Weighted-average incremental borrowing rate6.7%5.8%

(1)As of June 30, 2024, reflects the change in estimated useful lives as described in note 1.

The following table sets forth the components of lease cost:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Operating lease cost$327.0$313.9$653.4$620.6
Variable lease costs not included in lease liability (1)93.7114.5182.9223.6

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

Supplemental cash flow information is as follows:

Six Months Ended June 30,
20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$(673.4)$(641.5)
Non-cash items:
New operating leases (1)$78.8$113.9
Operating lease modifications and reassessments (2)$713.8$191.3

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

(2)For the six months ended June 30, 2024, reflects the change in estimated useful lives as described in note 1.

As of June 30, 2024, 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 June 30, 2024 were as follows:

Fiscal YearOperating Lease (1)
Remainder of 2024$592.6
20251,114.8
20261,062.0
20271,005.2
2028945.4
Thereafter8,306.9
Total lease payments13,026.9
Less amounts representing interest(4,605.8)
Total lease liability8,421.1
Less current portion of lease liability703.4
Non-current lease liability$7,717.7

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

4. GOODWILL AND OTHER INTANGIBLE ASSETS

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

PropertyServicesTotal
U.S. & CanadaAsia-PacificAfricaEuropeLatin AmericaData Centers
Balance as of January 1, 2024$4,638.6$562.7$497.7$3,051.9$966.1$2,920.0$2.0$12,639.0
Effect of foreign currency translation(1.6)(1.7)14.7(89.9)(77.4)——(155.9)
Balance as of June 30, 2024$4,637.0$561.0$512.4$2,962.0$888.7$2,920.0$2.0$12,483.1

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

As of June 30, 2024As of December 31, 2023
Estimated Useful Lives (years) (1)Gross Carrying ValueAccumulated AmortizationNet Book ValueGross Carrying ValueAccumulated AmortizationNet Book Value
Acquired network location intangibles (2)Up to 30$5,867.6$(2,803.5)$3,064.1$5,981.5$(2,775.8)$3,205.7
Acquired tenant-related intangiblesUp to 3018,564.2(6,893.8)11,670.418,894.5(6,698.6)12,195.9
Acquired licenses and other intangibles2-301,490.8(466.2)1,024.61,561.1(442.0)1,119.1
Total other intangible assets$25,922.6$(10,163.5)$15,759.1$26,437.1$(9,916.4)$16,520.7

(1)As of June 30, 2024, reflects the change in estimated useful lives as described in note 1.

(2)Beginning January 1, 2024, acquired network location intangibles are amortized over the remaining estimated useful life of the tower, taking into account residual value, generally up to 30 years, as the Company considers these intangibles to be directly related to the tower assets. Prior to January 1, 2024, acquired network location intangibles were amortized over the shorter of the term of the corresponding ground lease, taking into consideration lease renewal options and residual value, or the estimated useful life of the tower, generally up to 20 years.

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 June 30, 2024, the remaining weighted average amortization period of the Company’s intangible assets was 20 years. Amortization of intangible assets for the three and six months ended June 30, 2024 was $237.3 million and $479.8 million, respectively. Amortization of intangible assets for the three and six months ended June 30, 2023 was $358.2 million and $727.7 million, respectively. Based on current exchange rates, the Company expects to record amortization expense as follows over the remainder of the current year and the five subsequent years:

Fiscal YearAmount (1)
Remainder of 2024$466.0
2025913.7
2026875.6
2027863.7
2028852.2
2029833.2

(1)As of June 30, 2024, reflects the change in estimated useful lives as described in note 1.

5. ACCRUED EXPENSES

Accrued expenses consisted of the following:

As of
June 30, 2024December 31, 2023
Accrued construction costs$145.0$183.8
Accrued income tax payable28.121.0
Accrued pass-through costs99.477.4
Amounts payable for acquisitions2.027.7
Amounts payable to tenants90.5103.3
Accrued property and real estate taxes301.9295.5
Accrued rent78.375.1
Payroll and related withholdings107.6147.4
Other accrued expenses313.4349.4
Total accrued expenses$1,166.2$1,280.6

6. LONG-TERM OBLIGATIONS

Outstanding amounts under the Company’s long-term obligations, reflecting discounts, premiums and debt issuance costs, consisted of the following:

As of
June 30, 2024December 31, 2023Maturity Date
2021 Multicurrency Credit Facility (1) (2)$1,170.0$723.4July 1, 2026
2021 Term Loan (1)997.4997.0January 31, 2027
2021 Credit Facility (1)2,113.41,603.4July 1, 2028
2021 EUR Three Year Delayed Draw Term Loan (1) (2) (3)—910.7N/A
0.600% senior notes (4)—500.0N/A
5.00% senior notes (5)—1,000.1N/A
3.375% senior notes (6)—649.7N/A
2.950% senior notes649.1648.2January 15, 2025
2.400% senior notes749.1748.5March 15, 2025
1.375% senior notes (7)534.6550.0April 4, 2025
4.000% senior notes748.7748.1June 1, 2025

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

1.300% senior notes498.8498.3September 15, 2025
4.400% senior notes499.0498.7February 15, 2026
1.600% senior notes698.0697.4April 15, 2026
1.950% senior notes (7)533.8549.6May 22, 2026
1.450% senior notes596.7595.9September 15, 2026
3.375% senior notes995.6994.7October 15, 2026
3.125% senior notes399.1398.9January 15, 2027
2.750% senior notes747.5747.0January 15, 2027
0.450% senior notes (7)800.5824.3January 15, 2027
0.400% senior notes (7)532.6548.2February 15, 2027
3.650% senior notes645.6644.8March 15, 2027
4.125% senior notes (7)639.6658.6May 16, 2027
3.55% senior notes747.5747.1July 15, 2027
3.600% senior notes696.5696.0January 15, 2028
0.500% senior notes (7)799.0822.8January 15, 2028
1.500% senior notes647.5647.1January 31, 2028
5.500% senior notes694.3693.6March 15, 2028
5.250% senior notes644.5643.9July 15, 2028
5.800% senior notes744.0743.4November 15, 2028
5.200% senior notes643.0—February 15, 2029
3.950% senior notes594.2593.7March 15, 2029
0.875% senior notes (7)799.7823.7May 21, 2029
3.800% senior notes1,639.51,638.6August 15, 2029
2.900% senior notes744.7744.2January 15, 2030
3.900% senior notes (7)530.6—May 16, 2030
2.100% senior notes743.6743.1June 15, 2030
0.950% senior notes (7)530.2546.0October 5, 2030
1.875% senior notes793.8793.3October 15, 2030
2.700% senior notes695.3695.0April 15, 2031
4.625% senior notes (7)529.3545.2May 16, 2031
2.300% senior notes693.1692.7September 15, 2031
1.000% senior notes (7)690.7711.5January 15, 2032
4.050% senior notes643.3642.9March 15, 2032
5.650% senior notes791.0790.6March 15, 2033
1.250% senior notes (7)529.8545.8May 21, 2033
5.550% senior notes841.0840.6July 15, 2033
5.900% senior notes741.8741.5November 15, 2033
5.450% senior notes640.2—February 15, 2034
4.100% senior notes (7)528.3—May 16, 2034
3.700% senior notes592.5592.4October 15, 2049
3.100% senior notes1,038.71,038.6June 15, 2050
2.950% senior notes1,023.51,023.2January 15, 2051
Total American Tower Corporation debt36,520.236,472.0
Series 2015-2 notes (8)524.4524.1June 16, 2025
Series 2018-1A securities (9)497.2496.8March 15, 2028
Series 2023-1A securities (10)1,286.21,284.4March 15, 2028
Other subsidiary debt (11)119.9123.6Various
Total American Tower subsidiary debt2,427.72,428.9
Finance lease obligations20.520.6
Total38,968.438,921.5
Less current portion of long-term obligations(3,329.2)(3,187.5)

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Long-term obligations$35,639.2$35,734.0

(1)Accrues interest at a variable rate.

(2)As of December 31, 2023 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 May 21, 2024 using borrowings under the 2021 Multicurrency Credit Facility.

(4)Repaid in full on January 12, 2024 using borrowings under the 2021 Multicurrency Credit Facility.

(5)Repaid in full on February 14, 2024 using borrowings under the 2021 Multicurrency Credit Facility.

(6)Repaid in full on May 15, 2024 using borrowings under the 2021 Credit Facility.

(7)Notes are denominated in EUR.

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

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

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

(11)Includes borrowings under an unsecured term loan in India (the “India Term Loan”), which is denominated in INR. In January 2024, the Company amended the India Term Loan to extend the maturity date to December 31, 2024. As of December 31, 2023, also includes amounts drawn under letters of credit in Nigeria, which are denominated in USD.

*Current portion of long-term obligations—*The Company’s current portion of long-term obligations primarily includes (i) $650.0 million aggregate principal amount of the Company’s 2.950% senior unsecured notes due January 15, 2025, (ii) $750.0 million aggregate principal amount of the Company’s 2.400% senior unsecured notes due March 15, 2025, (iii) €500.0 million aggregate principal amount of the Company’s 1.375% senior unsecured notes due April 4, 2025, (iv) $750.0 million aggregate principal amount of the Company’s 4.000% senior unsecured notes due June 1, 2025 and (v) $525.0 million aggregate principal amount of the Company’s Secured Tower Revenue Notes, Series 2015-2, Class A due June 16, 2025.

*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.

Repayments of Senior Notes

Repayment of 0.600% Senior Notes—On January 12, 2024, the Company repaid $500.0 million aggregate principal amount of the Company’s 0.600% senior unsecured notes due 2024 (the “0.600% Notes”) upon their maturity. The 0.600% Notes were repaid using borrowings under the 2021 Multicurrency Credit Facility. Upon completion of the repayment, none of the 0.600% Notes remained outstanding.

Repayment of 5.00% Senior Notes—On February 14, 2024, the Company repaid $1.0 billion aggregate principal amount of the Company’s 5.00% senior unsecured notes due 2024 (the “5.00% Notes”) upon their maturity. The 5.00% Notes were repaid using borrowings under the 2021 Multicurrency Credit Facility. Upon completion of the repayment, none of the 5.00% Notes remained outstanding.

Repayment of 3.375% Senior Notes—On May 15, 2024, the Company repaid $650.0 million aggregate principal amount of the Company’s 3.375% senior unsecured notes due 2024 (the “3.375% Notes”) upon their maturity. The 3.375% Notes were repaid using borrowings under the 2021 Credit Facility. Upon completion of the repayment, none of the 3.375% Notes remained outstanding.

Offerings of Senior Notes

*5.200% Senior Notes and 5.450% Senior Notes Offering—*On March 7, 2024, the Company completed a registered public offering of $650.0 million aggregate principal amount of 5.200% senior unsecured notes due 2029 (the “5.200% Notes”) and $650.0 million aggregate principal amount of 5.450% senior unsecured notes due 2034 (the “5.450% Notes”). The net proceeds from this offering were approximately $1,281.3 million, after deducting commissions and estimated expenses. The Company used the net proceeds to repay existing indebtedness under the 2021 Multicurrency Credit Facility.

*3.900% Senior Notes and 4.100% Senior Notes Offering—*On May 29, 2024, the Company completed a registered public offering of 500.0 million EUR ($540.1 million at the date of issuance) aggregate principal amount of 3.900% senior unsecured notes due 2030 (the “3.900% Notes”) and 500.0 million EUR ($540.1 million at the date of issuance) aggregate principal amount of 4.100% senior unsecured notes due 2034 (the “4.100% Notes” and, together with the

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

5.200% Notes, the 5.450% Notes and the 3.900% Notes, the “Notes”). The net proceeds from this offering were approximately 988.4 million EUR (approximately $1,067.5 million at the date of issuance), after deducting commissions and estimated expenses. The Company used the net proceeds to repay existing EUR indebtedness under the 2021 Multicurrency Credit Facility.

The key terms of the Notes are as follows:

Senior NotesAggregate Principal Amount (in millions)Issue Date and Interest Accrual DateMaturity DateContractual Interest RateFirst Interest PaymentInterest Payments Due (1)Par Call Date (2)
5.200% Notes$650.0March 7, 2024February 15, 20295.200%August 15, 2024February 15 and August 15January 15, 2029
5.450% Notes$650.0March 7, 2024February 15, 20345.450%August 15, 2024February 15 and August 15November 15, 2033
3.900% Notes (3)$540.1May 29, 2024May 16, 20303.900%May 16, 2025May 16February 16, 2030
4.100% Notes (3)$540.1May 29, 2024May 16, 20344.100%May 16, 2025May 16February 16, 2034

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

(3)The 3.900% Notes and the 4.100% Notes are denominated in EUR; dollar amounts represent the equivalent issuance date aggregate principal amount.

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

The supplemental indentures contain certain covenants that restrict the Company’s ability to merge, consolidate or sell assets and its (together with its subsidiaries’) ability to incur liens. These covenants are subject to a number of exceptions, including that the Company and its subsidiaries may incur certain liens on assets, mortgages or other liens securing indebtedness if the aggregate amount of indebtedness secured by such liens does not exceed 3.5x Adjusted EBITDA, as defined in the applicable supplemental indenture.

Bank Facilities

*2021 Multicurrency Credit Facility—*During the six months ended June 30, 2024, the Company borrowed an aggregate of $3.6 billion, including 0.9 billion EUR ($1.0 billion as of the borrowing date) and repaid an aggregate of $3.1 billion, including 1.1 billion EUR ($1.2 billion as of the repayment date), of revolving indebtedness under the Company’s $6.0 billion senior unsecured multicurrency revolving credit facility, as amended and restated in December 2021, as further amended (the “2021 Multicurrency Credit Facility”). The Company used the borrowings to repay outstanding indebtedness, including the 0.600% Notes, the 5.00% Notes and the 2021 EUR Three Year Delayed Draw Term Loan (as defined below), and for general corporate purposes. As of June 30, 2024, there are no EUR borrowings outstanding under the 2021 Multicurrency Credit Facility.

*2021 Credit Facility—*During the six months ended June 30, 2024, the Company borrowed an aggregate of $1.5 billion and repaid an aggregate of $1.0 billion of revolving indebtedness under the Company’s $4.0 billion senior unsecured revolving credit facility, as amended and restated in December 2021, as further amended (the “2021 Credit Facility”). The Company used the borrowings to repay outstanding indebtedness, including the 3.375% Notes, and for general corporate purposes.

*Repayment of 2021 EUR Three Year Delayed Draw Term Loan—*On May 21, 2024, the Company repaid all amounts outstanding under its 825 million EUR ($895.5 million as of the repayment date) unsecured term loan, as amended in

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

December 2021 (the “2021 EUR Three Year Delayed Draw Term Loan”) using borrowings under the 2021 Multicurrency Credit Facility.

As of June 30, 2024, the key terms under the 2021 Multicurrency Credit Facility, the 2021 Credit Facility and the Company’s $1.0 billion unsecured term loan, as amended and restated in December 2021, as further amended (the “2021 Term Loan”) were as follows:

Outstanding Principal Balance (in millions)Undrawn letters of credit (in millions)Maturity DateCurrent margin over SOFR or EURIBOR (1)Current commitment fee (2)
2021 Multicurrency Credit Facility$1,170.0$3.5July 1, 2026(3)1.125%0.110%
2021 Credit Facility2,113.430.4July 1, 2028(3)1.125%0.110%
2021 Term Loan1,000.0N/AJanuary 31, 20271.125%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.

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

(3)Subject to two optional renewal periods.

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 1Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
Level 2Observable 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 3Unobservable 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:

June 30, 2024December 31, 2023
Fair Value Measurements UsingFair Value Measurements Using
Level 1Level 2Level 3Level 1Level 2Level 3
Assets:
Investments in equity securities (1)$54.2$5.3—$28.2$5.3—
VIL OCDs————$192.3—

(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 six months ended June 30, 2024 and 2023, the Company recognized unrealized gains (losses) of $40.7 million, $(1.8) million, $26.0 million and $(0.6) million, respectively, for equity securities held as of June 30, 2024.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

VIL Optionally Convertible Debentures—In February 2023, and as amended in August 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 TIPL, in exchange for VIL’s payment of certain amounts towards accounts receivables. The VIL OCDs were (a) to be repaid by VIL with interest or (b) convertible into equity of VIL. If converted and following registration, 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.

On March 23, 2024, the Company converted an aggregate face value of 14.4 billion INR (approximately $172.7 million) of VIL OCDs into 1,440 million shares of equity of VIL (the “VIL Shares”).

On April 29, 2024, the Company completed the sale of 1,440 million VIL Shares at a price of 12.78 INR per share. The net proceeds for this transaction were approximately 18.0 billion INR (approximately $216.0 million at the date of settlement) after deducting commissions and fees.

On June 5, 2024, the Company completed the sale of the remaining aggregate face value of 1.6 billion INR (approximately $19.2 million) of the VIL OCDs. The net proceeds for this transaction, excluding accrued interest, were approximately 1.8 billion INR (approximately $22.0 million at the date of settlement) after deducting fees.

During the three months ended June 30, 2024, the Company recognized a gain of $46.4 million on the sales of the VIL Shares and the VIL OCDs. The gains on the sales of the VIL Shares and the VIL OCDs are recorded in Other income (expense) in the consolidated statements of operations in the current period. As of June 30, 2024, none of the VIL Shares or the VIL OCDs remained outstanding.

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 six months ended June 30, 2024 or 2023 and there were no significant unobservable inputs used to determine the fair value of long-lived assets during the three and six months ended June 30, 2024 or 2023.

Fair Value of Financial Instruments—The Company’s financial instruments for which the carrying value reasonably approximates fair value at June 30, 2024 and December 31, 2023 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 June 30, 2024 and December 31, 2023, the carrying value of long-term obligations, including the current portion, was $39.0 billion and $38.9 billion, respectively. As of June 30, 2024, the fair value of long-term obligations, including the current portion, was $36.4 billion, of which $29.7 billion was measured using Level 1 inputs and $6.7 billion was measured using Level 2 inputs. As of December 31, 2023, the fair value of long-term obligations, including the current portion, was $36.7 billion, of which $30.0 billion was measured using Level 1 inputs and $6.7 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 earnings 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.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

The increases in the income tax provision during the three and six months ended June 30, 2024 were primarily attributable to increased earnings in certain foreign jurisdictions, partially due to the impacts of the change in estimated useful lives on depreciation and amortization expense as described in note 1. Additionally, the income tax provision for the three and six months ended June 30, 2023 included a benefit from the application of a tax law change in Kenya.

As of June 30, 2024 and December 31, 2023, the total unrecognized tax benefits that would impact the ETR, if recognized, were approximately $121.3 million and $130.7 million, respectively. The amount of unrecognized tax benefits during the three and six months ended June 30, 2024 includes (i) additions to the Company’s existing tax positions of $1.6 million and $2.6 million, respectively, (ii) reductions due to foreign currency exchange rate fluctuations of $7.6 million and $7.2 million, respectively, (iii) reductions to the Company’s prior year tax positions and settlements of $3.4 million and $3.4 million, respectively, and (iv) reductions due to the expiration of statutes of limitation of $1.4 million and $1.4 million, respectively. 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 2023 Form 10-K. The impact of the amount of these changes to previously recorded uncertain tax positions could range from zero to $10.2 million.

The Company recorded the following penalties and income tax-related interest expense during the three and six months ended June 30, 2024 and 2023:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Penalties and income tax-related interest expense$6.2$3.2$11.7$6.0

As of June 30, 2024 and December 31, 2023, the total amount of accrued income tax related interest and penalties included in the consolidated balance sheets were $68.6 million and $62.8 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. Performance-based restricted stock units (“PSUs”) generally vest over three years. Stock options generally expire ten years from the date of grant. As of June 30, 2024, the Company had the ability to grant stock-based awards with respect to an aggregate of 3.3 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 six months ended June 30, 2024 and 2023, the Company recorded the following stock-based compensation expense in selling, general, administrative and development expense:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Stock-based compensation expense$46.3$49.4$111.2$114.9

Stock Options—As of June 30, 2024, 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 six months ended June 30, 2024 was as follows (shares disclosed in full amounts):

Number of Options
Outstanding as of January 1, 2024766,955
Exercised(178,416)
Forfeited—
Expired—
Outstanding as of June 30, 2024588,539

*Restricted Stock Units—*As of June 30, 2024, total unrecognized compensation expense related to unvested RSUs granted under the 2007 Plan was $217.4 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 six months ended June 30, 2024, the Company’s Compensation Committee (the “Compensation Committee”) granted an aggregate of 87,550 PSUs (the “2024 PSUs”) to its executive officers and established the performance and market metrics for these awards. During the years ended December 31, 2023 and 2022, the Compensation Committee granted an aggregate of 118,684 PSUs (the “2023 PSUs”) and 98,542 PSUs (the “2022 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 2024 PSUs, the 2023 PSUs and the 2022 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 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.

The 2024 PSUs include a market condition component based on relative total shareholder return as measured against the REIT constituents included in the S&P 500 Index. For the component of the 2024 PSUs subject to a market condition, fair value is determined using a Monte Carlo simulation model, which uses multiple input variables to determine the probability of satisfying the market condition requirements. The grant date fair value of the market condition component of the 2024 PSUs is $216.11.

Key assumptions used to apply this pricing model were as follows:

Six Months Ended June 30, 2024
Expected term (years)2.81
Risk-free interest rate4.31%
Annualized volatility26.75%

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 six months ended June 30, 2024 was as follows (shares disclosed in full amounts):

RSUsPSUs
Outstanding as of January 1, 2024 (1)1,638,711363,488
Granted (2)692,62187,550
Vested and Released (3)(667,001)(144,925)
Forfeited(24,680)(1,337)
Outstanding as of June 30, 20241,639,651304,776
Vested and deferred as of June 30, 2024 (4)29,316—

(1)PSUs consist of the target number of shares issuable at the end of the three-year performance period for the outstanding 2023 PSUs and the outstanding 2022 PSUs, or 118,684 shares and 98,542 shares, respectively, the shares issuable at the end of the three-year performance period for the PSUs granted in 2021 (the “2021 PSUs”) based on achievement against the performance metrics for the three-year performance period, or 127,318 shares and the target remaining number of shares issuable at the end of the one-year performance period for PSUs granted to certain non-executive employees during the year ended December 31, 2023, net of forfeitures, or 18,944 shares (the “Retention PSUs”).

(2)PSUs consist of the target number of shares issuable at the end of the three-year performance period for the 2024 PSUs, or 87,550 shares.

(3)PSUs consist of shares vested pursuant to the 2021 PSUs and the Retention PSUs. There are no additional shares to be earned related to the 2021 PSUs or the Retention PSUs.

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

During the three and six months ended June 30, 2024, the Company recorded $7.2 million and $16.3 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 June 30, 2024 was $15.4 million based on the Company’s current assessment of the probability of achieving the performance goals. The weighted average period over which the cost will be recognized is approximately 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 six months ended June 30, 2024, the Company received an aggregate of $23.7 million in proceeds upon exercises of stock options and sales pursuant to the ESPP.

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 Securities Exchange Act of 1934, as amended (the “Exchange Act”), in accordance with securities laws and other legal requirements and subject to market conditions and other factors.

During the six months ended June 30, 2024, there were no repurchases under either of the Buyback Programs. As of June 30, 2024, 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 June 30, 2024, the Company has not made any repurchases under the 2017 Buyback.

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.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Distributions—During the six months ended June 30, 2024, the Company declared or paid the following cash distributions (per share data reflects actual amounts):

Declaration DatePayment DateRecord DateDistribution per shareAggregate Payment Amount (1)
Common Stock
May 23, 2024July 12, 2024June 14, 2024$1.62$756.7
March 14, 2024April 26, 2024April 12, 2024$1.62$756.5
December 13, 2023February 1, 2024December 28, 2023$1.70$792.7

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

During the six months ended June 30, 2023, the Company declared or paid the following cash distributions (per share data reflects actual amounts):

Declaration DatePayment DateRecord DateDistribution per shareAggregate Payment Amount (1)
Common Stock
May 24, 2023July 10, 2023June 16, 2023$1.57$731.8
March 8, 2023April 28, 2023April 14, 2023$1.56$727.0
December 7, 2022February 2, 2023December 28, 2022$1.56$726.3

(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 June 30, 2024, the amount accrued for distributions payable related to unvested restricted stock units was $18.0 million. During the six months ended June 30, 2024 and 2023, the Company paid $10.0 million and $7.3 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—*As of June 30, 2024, 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 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”) 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 (approximately $10.6 million at the date of closing). Confidence Group holds a 49% noncontrolling interest in KTBL.

Stonepeak Transaction—In 2022, the Company entered into agreements 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 for total aggregate consideration of $3.1 billion, through an investment in common equity and mandatorily convertible preferred equity (the “Stonepeak Transaction”).

As of June 30, 2024, 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 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 upon conversion.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

*Dividends to noncontrolling interests—*Certain of the Company’s subsidiaries may, from time to time, declare dividends. During the six months ended June 30, 2024, the Company’s U.S. data center business declared distributions of $23.0 million related to the outstanding Stonepeak mandatorily convertible preferred equity (the “Stonepeak Preferred Distributions”). As of June 30, 2024, the amount accrued for Stonepeak Preferred Distributions was $11.5 million.

Beginning in January 2024, pursuant to the terms of the ownership agreement with Stonepeak, on a quarterly basis, the Company’s U.S. data center business will distribute common dividends to the Company and to Stonepeak in proportion to their respective equity interests in the Company’s U.S. data center business (the “Stonepeak Common Dividend”). During the six months ended June 30, 2024, the Company’s U.S. data center business made distributions of $91.7 million related to the Stonepeak Common Dividend for the period from the initial closing of the Stonepeak Transaction in August 2022 through December 31, 2023, which was accrued for as of December 31, 2023. The $91.7 million distribution during the six months ended June 30, 2024 included a noncash distribution of $37.5 million made in lieu of a common equity contribution from Stonepeak. Additionally, during the three months ended June 30, 2024, the Company’s U.S. data center business declared and paid distributions of $13.0 million related to the Stonepeak Common Dividend.

During the six months ended June 30, 2024, pursuant to the terms of the ownership agreements, ATC Europe C.V., one of the Company’s subsidiaries in the Netherlands, declared and paid a dividend of 170.0 million EUR (approximately $183.2 million at the date of payment), pursuant to the terms of the ownership agreements, to the Company, CDPQ and Allianz in proportion to their respective equity interests in ATC Europe C.V.

During the six months ended June 30, 2024, pursuant to the terms of the ownership agreements, AT Rhine C.V., one of the Company’s subsidiaries in Germany, declared and paid a dividend of 45.0 million EUR (approximately $48.6 million at the date of payment), pursuant to the terms of the ownership agreements, to ATC Europe and PGGM in proportion to their respective equity interests in AT Rhine C.V.

During the six months ended June 30, 2024, pursuant to the terms of the ownership agreements, AT Iberia C.V., one of the Company’s subsidiaries in Spain, declared and paid a dividend of 22.4 million EUR (approximately $24.0 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.

During the six months ended June 30, 2024, pursuant to the terms of the ownership agreements, AT Iberia C.V. also declared and paid a dividend of 70.0 million EUR (approximately $74.9 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 distribution included a noncash distribution to PGGM of $12.4 million made in lieu of a contribution from PGGM.

The changes in noncontrolling interests were as follows:

Six Months Ended June 30,
20242023
Balance as of January 1,$6,667.2$6,836.1
Net income (loss) attributable to noncontrolling interests12.4(35.0)
Foreign currency translation adjustment attributable to noncontrolling interests, net of tax(119.7)60.8
Contributions from noncontrolling interest holders (1)152.410.5
Distributions to noncontrolling interest holders(144.8)(31.6)
Balance as of June 30,$6,567.5$6,840.8

(1)Six months ended June 30, 2024, includes contributions from Stonepeak of $137.3 million, including a noncash contribution of $37.5 million made in lieu of Stonepeak’s receipt of the Stonepeak Common Dividend and a noncash contribution from PGGM of $12.4 million made in lieu of PGGM’s receipt of a distribution.

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 June 30,Six Months Ended June 30,
2024202320242023
Net income attributable to American Tower Corporation common stockholders$900.3$475.7$1,817.7$811.5
Basic weighted average common shares outstanding467,038466,087466,778465,915
Dilutive securities7438921,0151,024
Diluted weighted average common shares outstanding467,781466,979467,793466,939
Basic net income attributable to American Tower Corporation common stockholders per common share$1.93$1.02$3.89$1.74
Diluted net income attributable to American Tower Corporation common stockholders per common share$1.92$1.02$3.89$1.74

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 June 30,Six Months Ended June 30,
2024202320242023
Restricted stock units6463742875

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, which commenced on March 27, 2015. The average term of the lease or sublease for all communications sites at the inception of the agreement was approximately 28 years, assuming renewals or extensions of the underlying ground leases for the sites. The Company has the option to purchase the leased sites in tranches, subject to the applicable lease, sublease or management rights upon its scheduled expiration. Each tower is assigned to an annual tranche, ranging from 2034 to 2047, which represents the outside expiration date for the sublease rights to the towers in that tranche. The purchase price for each tranche is a fixed amount stated in the lease for such tranche plus the fair market value of certain alterations made to the related towers. The aggregate purchase option price for the towers leased and subleased is approximately $5.0 billion. Verizon will occupy the sites as a tenant for an initial term of ten years with eight optional successive five-year terms; each such term shall be governed by standard master lease agreement terms established as a part of the transaction.

AT&T Transaction—The Company has an agreement with SBC Communications Inc., a predecessor entity to AT&T Inc. (“AT&T”), that currently provides for the lease or sublease of approximately 1,800 towers, which commenced between December 2000 and August 2004. Substantially all of the towers are part of the Trust Securitizations. The average term of the lease or sublease for all sites at the inception of the agreement was approximately 27 years, assuming renewals or extensions of the underlying ground leases for the sites. The Company has the option to purchase the sites subject to the applicable lease or sublease upon its expiration. Each tower is assigned to an annual tranche, ranging from 2013 to 2032, which represents the outside expiration date for the sublease rights to that tower. The purchase price for each site is a fixed amount stated in the lease for that site plus the fair market value of certain alterations made to the related tower by AT&T. As of June 30, 2024, 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 such sites, AT&T has the right to continue to lease the reserved space through June 30, 2025 at the then-current monthly fee, which shall escalate in accordance with the standard master lease agreement for the

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

remainder of AT&T’s tenancy. Thereafter, AT&T shall have the right to renew such lease for up to five successive five-year terms.

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. 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 land 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 June 30, 2024, 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

The Company’s Services segment offers tower-related services in the United States, including AZP, structural and mount analyses, 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 2023 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.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Summarized financial information concerning the Company’s reportable segments for the three and six months ended June 30, 2024 and 2023 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.

PropertyTotal PropertyServicesOtherTotal
Three Months Ended June 30, 2024U.S. & CanadaAsia-PacificAfricaEuropeLatin AmericaData Centers
Segment revenues$1,315.4$360.9$293.9$203.2$448.7$230.8$2,852.9$47.4$2,900.3
Segment operating expenses220.6174.096.473.2136.499.3799.922.0821.9
Segment gross margin1,094.8186.9197.5130.0312.3131.52,053.025.42,078.4
Segment selling, general, administrative and development expense (1)40.216.215.415.421.718.9127.84.6132.4
Segment operating profit$1,054.6$170.7$182.1$114.6$290.6$112.6$1,925.2$20.8$1,946.0
Stock-based compensation expense$46.346.3
Other selling, general, administrative and development expense55.655.6
Depreciation, amortization and accretion561.7561.7
Other expense (2)254.0254.0
Income from continuing operations before income taxes$1,028.4
Total assets$26,867.3$3,702.0$4,019.8$11,568.2$8,481.1$10,479.4$65,117.8$73.8$646.2$65,837.8

(1)Segment selling, general, administrative and development expenses exclude stock-based compensation expense of $46.3 million.

(2)Primarily includes interest expense and losses from foreign currency exchange rate fluctuations, partially offset by a gain of $46.4 million on the sales of the VIL Shares and the VIL OCDs and an unrealized gain from equity securities of $40.7 million.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

PropertyTotal PropertyServicesOtherTotal
Three Months Ended June 30, 2023U.S. & CanadaAsia-PacificAfricaEuropeLatin AmericaData Centers
Segment revenues$1,303.2$261.7$321.2$198.2$439.4$204.9$2,728.6$43.1$2,771.7
Segment operating expenses216.9179.6112.877.3139.883.7810.117.2827.3
Segment gross margin1,086.382.1208.4120.9299.6121.21,918.525.91,944.4
Segment selling, general, administrative and development expense (1)41.717.418.715.123.518.6135.05.3140.3
Segment operating profit$1,044.6$64.7$189.7$105.8$276.1$102.6$1,783.5$20.6$1,804.1
Stock-based compensation expense$49.449.4
Other selling, general, administrative and development expense54.754.7
Depreciation, amortization and accretion764.6764.6
Other expense (2)460.7460.7
Income from continuing operations before income taxes$474.7
Total assets$26,595.2$3,941.7$4,180.6$11,659.8$9,229.1$10,549.7$66,156.1$102.9$620.0$66,879.0

(1)Segment selling, general, administrative and development expenses exclude stock-based compensation expense of $49.4 million.

(2)Primarily includes interest expense and losses from foreign currency exchange rate fluctuations. Three months ended June 30, 2023 also includes $37.5 million in impairment charges.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

PropertyTotal PropertyServicesOtherTotal
Six Months Ended June 30, 2024U.S. & CanadaAsia-PacificAfricaEuropeLatin AmericaData Centers
Segment revenues$2,626.1$687.5$585.9$407.7$894.2$455.4$5,656.8$77.6$5,734.4
Segment operating expenses424.9344.7189.1146.7276.7192.21,574.335.91,610.2
Segment gross margin2,201.2342.8396.8261.0617.5263.24,082.541.74,124.2
Segment selling, general, administrative and development expense (1)76.829.030.331.249.536.1252.99.5262.4
Segment operating profit$2,124.4$313.8$366.5$229.8$568.0$227.1$3,829.6$32.2$3,861.8
Stock-based compensation expense$111.2111.2
Other selling, general, administrative and development expense117.7117.7
Depreciation, amortization and accretion1,111.11,111.1
Other expense (2)462.5462.5
Income from continuing operations before income taxes$2,059.3

(1)Segment selling, general, administrative and development expenses exclude stock-based compensation expense of $111.2 million.

(2)Primarily includes interest expense, partially offset by gains from foreign currency exchange rate fluctuations, a gain of $46.4 million on the sales of the VIL Shares and the VIL OCDs and an unrealized gain from equity securities of $26.0 million.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

PropertyTotal PropertyServicesOtherTotal
Six Months Ended June 30, 2023U.S. & CanadaAsia-PacificAfricaEuropeLatin AmericaData Centers
Segment revenues$2,590.8$512.8$638.2$389.9$903.5$407.9$5,443.1$95.8$5,538.9
Segment operating expenses422.2348.0231.3150.4277.7167.51,597.136.31,633.4
Segment gross margin2,168.6164.8406.9239.5625.8240.43,846.059.53,905.5
Segment selling, general, administrative and development expense (1)82.526.240.129.753.236.1267.811.0278.8
Segment operating profit$2,086.1$138.6$366.8$209.8$572.6$204.3$3,578.2$48.5$3,626.7
Stock-based compensation expense$114.9114.9
Other selling, general, administrative and development expense114.6114.6
Depreciation, amortization and accretion1,558.71,558.7
Other expense (2)995.4995.4
Income from continuing operations before income taxes$843.1

(1)Segment selling, general, administrative and development expenses exclude stock-based compensation expense of $114.9 million.

(2)Primarily includes interest expense and losses from foreign currency exchange rate fluctuations. Six months ended June 30, 2023 also includes a net loss on the sales of one of the Company’s subsidiaries in Mexico that held fiber assets and the Company’s subsidiary in Poland of $78.9 million and $67.3 million in impairment charges.

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