AMERICAN TOWER CORP /MA/ [AMT] Filings

10-Q 1 amt-20240630.htm 10-Q amt-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One):

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended June 30, 2024.

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Commission File Number: 001-14195

AMERICAN TOWER CORPORATION

(Exact name of registrant as specified in its charter)


Delaware						65-0723837
(State or other jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)

116 Huntington Avenue

Boston, Massachusetts 02116

(Address of principal executive offices)

Telephone Number (617) 375-7500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each Class	Trading Symbol(s)	Name of exchange on which registered
Common Stock, $0.01 par value	AMT	New York Stock Exchange
1.375% Senior Notes due 2025	AMT 25A	New York Stock Exchange
1.950% Senior Notes due 2026	AMT 26B	New York Stock Exchange
0.450% Senior Notes due 2027	AMT 27C	New York Stock Exchange
0.400% Senior Notes due 2027	AMT 27D	New York Stock Exchange
4.125% Senior Notes due 2027	AMT 27F	New York Stock Exchange
0.500% Senior Notes due 2028	AMT 28A	New York Stock Exchange
0.875% Senior Notes due 2029	AMT 29B	New York Stock Exchange
0.950% Senior Notes due 2030	AMT 30C	New York Stock Exchange
3.900% Senior Notes due 2030	AMT 30D	New York Stock Exchange
4.625% Senior Notes due 2031	AMT 31B	New York Stock Exchange
1.000% Senior Notes due 2032	AMT 32	New York Stock Exchange
1.250% Senior Notes due 2033	AMT 33	New York Stock Exchange
4.100% Senior Notes due 2034	AMT 34A	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

As of July 23, 2024, there were 467,081,657 shares of common stock outstanding.

AMERICAN TOWER CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2024

Page Nos.

PART I. FINANCIAL INFORMATION

Item 1.

Unaudited Consolidated and Condensed Consolidated Financial Statements

Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023

Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023

Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023

Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023

Consolidated Statements of Equity for the three and six months ended June 30, 2024 and 2023

Notes to Consolidated and Condensed Consolidated Financial Statements

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Item 4.

Controls and Procedures

PART II. OTHER INFORMATION

Item 1.

Item 1A.

Item 5.

Item 6.


PART I.			FINANCIAL INFORMATION


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, 2024		December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	2,492.1	$	1,973.3
Restricted cash	126.5		120.1

Accounts receivable, net	712.3		669.7
Prepaid and other current assets	783.2		946.9

Total current assets	4,114.1		3,710.0
PROPERTY AND EQUIPMENT, net	19,927.7		19,788.8
GOODWILL	12,483.1		12,639.0
OTHER INTANGIBLE ASSETS, net	15,759.1		16,520.7
DEFERRED TAX ASSET	139.2		179.1
DEFERRED RENT ASSET	3,649.5		3,521.8
RIGHT-OF-USE ASSET	9,012.1		8,878.8
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS	753.0		789.4
TOTAL	$	65,837.8	$	66,027.6
LIABILITIES
CURRENT LIABILITIES:
Accounts payable	$	206.0	$	258.7
Accrued expenses	1,166.2		1,280.6
Distributions payable	778.1		906.2
Accrued interest	314.1		387.0
Current portion of operating lease liability	703.4		794.6
Current portion of long-term obligations	3,329.2		3,187.5
Unearned revenue	391.7		434.7
Total current liabilities	6,888.7		7,249.3
LONG-TERM OBLIGATIONS	35,639.2		35,734.0
OPERATING LEASE LIABILITY	7,717.7		7,438.7
ASSET RETIREMENT OBLIGATIONS	2,562.3		2,158.2
DEFERRED TAX LIABILITY	1,399.3		1,361.4
OTHER NON-CURRENT LIABILITIES	1,207.1		1,220.6
Total liabilities	55,414.3		55,162.2
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, respectively	4.8		4.8
Additional paid-in capital	14,955.0		14,872.9
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 equity	3,856.0		4,198.2
Noncontrolling interests	6,567.5		6,667.2
Total equity	10,423.5		10,865.4
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,
	2024		2023		2024		2023
REVENUES:
Property	$	2,852.9	$	2,728.6	$	5,656.8	$	5,443.1
Services	47.4		43.1		77.6		95.8
Total operating revenues	2,900.3		2,771.7		5,734.4		5,538.9
OPERATING EXPENSES:
Costs of operations (exclusive of items shown separately below):
Property	799.9		810.1		1,574.3		1,597.1
Services	22.0		17.2		35.9		36.3
Depreciation, amortization and accretion	561.7		764.6		1,111.1		1,558.7
Selling, general, administrative and development expense	234.3		244.4		491.3		508.3
Other operating (income) expense	(1.9)		61.7		0.9		189.2

Total operating expenses	1,616.0		1,898.0		3,213.5		3,889.6
OPERATING INCOME	1,284.3		873.7		2,520.9		1,649.3
OTHER INCOME (EXPENSE):
Interest income	43.7		30.6		91.7		61.4
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 TAXES	1,028.4		474.7		2,059.3		843.1
Income tax provision	(120.0)		(13.2)		(229.2)		(66.6)
NET INCOME	908.4		461.5		1,830.1		776.5
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):
BASIC	467,038		466,087		466,778		465,915
DILUTED	467,781		466,979		467,793		466,939

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,
	2024		2023		2024		2023
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 income	497.6		447.9		988.1		995.0
Comprehensive loss (income) attributable to noncontrolling interests	18.9		(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,
	2024		2023
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 accretion	1,111.1		1,558.7
Stock-based compensation expense	111.2		114.9
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, net	31.3		(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 activities	2,622.1		2,279.9
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 assets	251.5		6.9

Deposits and other	0.1		250.6
Cash used for investing activities	(525.3)		(716.5)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings, net	8.7		146.2
Borrowings under credit facilities	5,097.9		4,780.0
Proceeds from issuance of senior notes, net	2,374.1		4,182.3


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 holders	102.5		1.9

Proceeds from stock options and employee stock purchase plan	23.7		10.3
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 CASH	525.2		8.7
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	2,093.4		2,140.7
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 Stock	Treasury Stock			Additional Paid-in Capital	Accumulated Other Comprehensive Loss		Distributions in Excess of Earnings		Noncontrolling Interests		Total Equity
Three Months Ended June 30, 2023 and 2024		Issued Shares	Amount											Shares			Amount
BALANCE, APRIL 1, 2023		477,042	$	4.8	(11,004)	$	(1,301.2)	$	14,725.6	$	(5,526.1)	$	(2,496.5)		$	6,843.7		$	12,250.3
Stock-based compensation related activity		44	0.0		—	—		45.4		—		—			—			45.4
Issuance of common stock-stock purchase plan		52	0.0		—	—		8.2		—		—			—			8.2





Foreign currency translation adjustment, net of tax		—	—		—	—		—		(34.5)		—			20.9			(13.6)

Contributions from noncontrolling interest holders		—	—		—	—		—		—		—			10.5			10.5
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, 2023		477,138	$	4.8	(11,004)	$	(1,301.2)	$	14,779.2	$	(5,560.6)	$	(2,755.8)		$	6,840.8		$	12,007.2

BALANCE, APRIL 1, 2024		477,968	$	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 activity		61	0.0		—	—		42.9		—		—			—			42.9
Issuance of common stock-stock purchase plan		52	0.0		—	—		8.7		—		—			—			8.7





Foreign currency translation adjustment, net of tax		—	—		—	—		—		(383.8)		—			(27.0)			(410.8)

Contributions from noncontrolling interest holders		—	—		—	—		—		—		—			13.5			13.5
Distributions to noncontrolling interest holders		—	—		—	—		—		—		—			(41.0)			(41.0)


Common stock distributions declared		—	—		—	—		—		—		(759.9)			—			(759.9)

Net income		—	—		—	—		—		—		900.3			8.1			908.4
BALANCE, JUNE 30, 2024		478,081	$	4.8	(11,004)	$	(1,301.2)	$	14,955.0	$	(6,461.8)	$	(3,340.8)		$	6,567.5		$	10,423.5

	Common Stock	Treasury Stock			Additional Paid-in Capital	Accumulated Other Comprehensive Loss		Distributions in Excess of Earnings		Noncontrolling Interests		Total Equity
Six Months Ended June 30, 2023 and 2024		Issued Shares	Amount											Shares			Amount
BALANCE, JANUARY 1, 2023		476,623	$	4.8	(11,004)	$	(1,301.2)	$	14,689.0	$	(5,718.3)	$	(2,101.9)		$	6,836.1		$	12,408.5
Stock-based compensation related activity		463	0.0		—	—		82.0		—		—			—			82.0
Issuance of common stock- stock purchase plan		52	0.0		—	—		8.2		—		—			—			8.2





Foreign currency translation adjustment, net of tax		—	—		—	—		—		157.7		—			60.8			218.5

Contributions from noncontrolling interest		—	—		—	—		—		—		—			10.5			10.5
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, 2023		477,138	$	4.8	(11,004)	$	(1,301.2)	$	14,779.2	$	(5,560.6)	$	(2,755.8)		$	6,840.8		$	12,007.2

BALANCE, JANUARY 1, 2024		477,300	$	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 activity		729	0.0		—	—		73.4		—		—			—			73.4
Issuance of common stock- stock purchase plan		52	0.0		—	—		8.7		—		—			—			8.7





Foreign currency translation adjustment, net of tax		—	—		—	—		—		(722.3)		—			(119.7)			(842.0)

Contributions from noncontrolling interest holders		—	—		—	—		—		—		—			152.4			152.4
Distributions to noncontrolling interest holders		—	—		—	—		—		—		—			(144.8)			(144.8)


Common stock distributions declared		—	—		—	—		—		—		(1,519.7)			—			(1,519.7)

Net income		—	—		—	—		—		—		1,817.7			12.4			1,830.1
BALANCE, JUNE 30, 2024		478,081	$	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,
	2024		2023
Cash and cash equivalents	$	2,492.1	$	2,015.7
Restricted cash	126.5		133.7
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, 2024	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	77.2	$	2.2	$	6.2	$	5.2	$	27.6	$	32.8	$	151.2
Services revenue	47.4		—		—		—		—		—		47.4
Total non-lease revenue	$	124.6	$	2.2	$	6.2	$	5.2	$	27.6	$	32.8	$	198.6
Property lease revenue	1,238.2		358.7		287.7		198.0		421.1		198.0		2,701.7
Total revenue	$	1,362.8	$	360.9	$	293.9	$	203.2	$	448.7	$	230.8	$	2,900.3


Three Months Ended June 30, 2023	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	83.9	$	2.4	$	5.9	$	4.1	$	28.5	$	28.3	$	153.1
Services revenue	43.1		—		—		—		—		—		43.1
Total non-lease revenue	$	127.0	$	2.4	$	5.9	$	4.1	$	28.5	$	28.3	$	196.2
Property lease revenue	1,219.3		259.3		315.3		194.1		410.9		176.6		2,575.5
Total revenue	$	1,346.3	$	261.7	$	321.2	$	198.2	$	439.4	$	204.9	$	2,771.7


Six Months Ended June 30, 2024	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	150.1	$	4.4	$	12.3	$	8.7	$	56.3	$	64.4	$	296.2
Services revenue	77.6		—		—		—		—		—		77.6
Total non-lease revenue	$	227.7	$	4.4	$	12.3	$	8.7	$	56.3	$	64.4	$	373.8
Property lease revenue	2,476.0		683.1		573.6		399.0		837.9		391.0		5,360.6
Total revenue	$	2,703.7	$	687.5	$	585.9	$	407.7	$	894.2	$	455.4	$	5,734.4


Six Months Ended June 30, 2023	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	154.9	$	4.7	$	12.6	$	7.5	$	69.8	$	56.6	$	306.1
Services revenue	95.8		—		—		—		—		—		95.8
Total non-lease revenue	$	250.7	$	4.7	$	12.6	$	7.5	$	69.8	$	56.6	$	401.9
Property lease revenue	2,435.9		508.1		625.6		382.4		833.7		351.3		5,137.0
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, 2024		December 31, 2023
Prepaid assets	$	111.4	$	93.4
Prepaid income tax	151.2		102.9

Unbilled receivables	362.7		323.2
Value added tax and other consumption tax receivables	41.9