UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
   
FORM 10-Q
   
(Mark One):
xQuarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended March 31, 2018.2019.
¨

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 AMTNew York Stock Exchange
1.375% Senior Notes due 2025AMT 25ANew York Stock Exchange
1.950% Senior Notes due 2026AMT 26BNew 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  x    No  ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).    Yes  x    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. (Check One):
Large accelerated filer x  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  x
As of April 24, 2018,26, 2019, there were 441,659,919442,023,435 shares of common stock outstanding.
   



AMERICAN TOWER CORPORATION
TABLE OF CONTENTS
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 20182019

 
  Page Nos.
    
PART I. FINANCIAL INFORMATION  
Item 1.
Unaudited Consolidated and Condensed Consolidated Financial Statements
 
1
 
Consolidated Balance Sheets as of March 31, 20182019 and December 31, 20172018
 
1
 
Consolidated Statements of Operations for the three months ended March 31, 20182019 and 20172018
 
2
 
Consolidated Statements of Comprehensive Income for the three months ended March 31, 20182019 and 20172018
 
3
 
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 20182019 and 20172018
 
4
 
Consolidated Statements of Equity for the three months ended March 31, 20182019 and 20172018
 
5
 
Notes to Consolidated and Condensed Consolidated Financial Statements
 
6
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
2832
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
 
5051
Item 4.
Controls and Procedures
 
5051
PART II. OTHER INFORMATION  
Item 1.
Legal Proceedings
 
5253
Item 1A.
Risk Factors
 
5253
Item 6.
Exhibits
 
5254
Signatures
 
5355



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)
 March 31, 2018 December 31, 2017 March 31, 2019 December 31, 2018
ASSETS        
CURRENT ASSETS:        
Cash and cash equivalents $1,125.4
 $802.1
 $1,004.8
 $1,208.7
Restricted cash 153.5
 152.8
 94.9
 96.2
Short-term investments 389.4
 1.0
 18.4
 —
Accounts receivable, net 557.9
 513.6
 473.0
 459.0
Prepaid and other current assets 571.2
 568.6
 471.2
 621.2
Total current assets 2,797.4
 2,038.1
 2,062.3
 2,385.1
PROPERTY AND EQUIPMENT, net 11,294.8
 11,101.0
 11,202.6
 11,247.1
GOODWILL 5,647.1
 5,638.4
 5,538.2
 5,501.9
OTHER INTANGIBLE ASSETS, net 11,940.2
 11,783.3
 11,042.8
 11,174.3
DEFERRED TAX ASSET 192.9
 204.4
 132.3
 157.7
DEFERRED RENT ASSET 1,510.0
 1,499.0
 1,588.6
 1,581.7
RIGHT-OF-USE ASSET 7,080.9
 —
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS 990.3
 950.1
 279.1
 962.6
TOTAL $34,372.7
 $33,214.3
 $38,926.8
 $33,010.4
LIABILITIES        
CURRENT LIABILITIES:        
Accounts payable $118.7
 $142.9
 $130.0
 $130.8
Accrued expenses 825.4
 854.3
 863.7
 948.3
Distributions payable 335.0
 304.4
 403.1
 377.4
Accrued interest 131.0
 166.9
 126.5
 174.5
Current portion of operating lease liability 498.4
 —
Current portion of long-term obligations 2,803.2
 774.8
 2,097.2
 2,754.8
Unearned revenue 331.4
 268.8
 293.0
 304.1
Total current liabilities 4,544.7
 2,512.1
 4,411.9
 4,689.9
LONG-TERM OBLIGATIONS 18,568.8
 19,430.3
 19,107.1
 18,405.1
OPERATING LEASE LIABILITY 6,316.1
 —
ASSET RETIREMENT OBLIGATIONS 1,215.0
 1,175.3
 1,227.2
 1,210.0
DEFERRED TAX LIABILITY 791.7
 898.1
 510.8
 535.9
OTHER NON-CURRENT LIABILITIES 1,246.0
 1,244.2
 864.4
 1,265.1
Total liabilities 26,366.2
 25,260.0
 32,437.5
 26,106.0
COMMITMENTS AND CONTINGENCIES 

 

 

 

REDEEMABLE NONCONTROLLING INTERESTS 1,065.2
 1,126.2
 589.0
 1,004.8
EQUITY (shares in thousands):        
Preferred stock: $.01 par value; 20,000 shares authorized;    
5.50%, Series B, 1,375 shares issued, 0 and 1,375 shares outstanding; aggregate liquidation value of $0.0 and $1.4, respectively —
 0.0
Common stock: $.01 par value; 1,000,000 shares authorized; 450,505 and 437,729 shares issued; and 441,596 and 428,820 shares outstanding, respectively 4.5
 4.4
Common stock: $.01 par value; 1,000,000 shares authorized; 452,525 and 451,617 shares issued; and 441,968 and 441,060 shares outstanding, respectively 4.5
 4.5
Additional paid-in capital 10,224.0
 10,247.5
 10,447.9
 10,380.8
Distributions in excess of earnings (1,085.7) (1,058.1) (1,226.4) (1,199.5)
Accumulated other comprehensive loss (1,834.6) (1,978.3) (2,672.2) (2,642.9)
Treasury stock (8,909 shares at cost) (974.0) (974.0)
Treasury stock (10,557 shares at cost) (1,206.8) (1,206.8)
Total American Tower Corporation equity 6,334.2
 6,241.5
 5,347.0
 5,336.1
Noncontrolling interests 607.1
 586.6
 553.3
 563.5
Total equity 6,941.3
 6,828.1
 5,900.3
 5,899.6
TOTAL $34,372.7
 $33,214.3
 $38,926.8
 $33,010.4
See accompanying notes to unaudited consolidated and condensed consolidated financial statements.


AMERICAN TOWER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except share and per share data)
 Three Months Ended March 31, Three Months Ended March 31,
 2018 2017 2019 2018
REVENUES:        
Property $1,710.4
 $1,594.1
 $1,786.0
 $1,710.4
Services 31.4
 22.1
 27.4
 31.4
Total operating revenues 1,741.8
 1,616.2
 1,813.4
 1,741.8
OPERATING EXPENSES:        
Costs of operations (exclusive of items shown separately below):        
Property (each including stock-based compensation expense of $0.7) 507.4
 486.2
Services (including stock-based compensation expense of $0.3 and $0.2, respectively) 12.5
 6.5
Property 533.0
 507.4
Services 10.4
 12.5
Depreciation, amortization and accretion 446.3
 421.1
 436.9
 446.3
Selling, general, administrative and development expense (including stock-based compensation expense of $41.7 and $35.3, respectively) 204.9
 164.8
Selling, general, administrative and development expense 198.1
 204.9
Other operating expenses 167.8
 6.2
 20.1
 167.8
Total operating expenses 1,338.9
 1,084.8
 1,198.5
 1,338.9
OPERATING INCOME 402.9
 531.4
 614.9
 402.9
OTHER INCOME (EXPENSE):        
Interest income, TV Azteca (each net of interest expense of $0.3) 2.7
 2.7
Interest income, TV Azteca (net of interest expense of $0.0 and $0.3, respectively) —
 2.7
Interest income 15.4
 9.9
 12.4
 15.4
Interest expense (199.6) (183.7) (207.5) (199.6)
Loss on retirement of long-term obligations —
 (55.4) (0.1) —
Other income (including unrealized foreign currency gains of $24.9 and $28.0, respectively) 27.8
 29.3
Other income (including foreign currency gains of $20.1 and $23.3, respectively) 21.9
 27.8
Total other expense (153.7) (197.2) (173.3) (153.7)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 249.2
 334.2
 441.6
 249.2
Income tax benefit (provision) 31.1
 (26.8)
Income tax (provision) benefit (34.0) 31.1
NET INCOME 280.3
 307.4
 407.6
 280.3
Net loss attributable to noncontrolling interests 4.9
 8.7
Net (income) loss attributable to noncontrolling interests (10.2) 4.9
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION STOCKHOLDERS 285.2
 316.1
 397.4
 285.2
Dividends on preferred stock (9.4) (26.8) —
 (9.4)
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON STOCKHOLDERS $275.8
 $289.3
 $397.4
 $275.8
NET INCOME PER COMMON SHARE AMOUNTS:        
Basic net income attributable to American Tower Corporation common stockholders $0.63
 $0.68
 $0.90
 $0.63
Diluted net income attributable to American Tower Corporation common stockholders $0.63
 $0.67
 $0.89
 $0.63
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in thousands):        
BASIC 435,124
 427,279
 441,351
 435,124
DILUTED 438,520
 430,199
 444,621
 438,520
DISTRIBUTIONS DECLARED PER COMMON SHARE $0.75
 $0.62
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 March 31, Three Months Ended March 31,
 2018 2017 2019 2018
Net income $280.3
 $307.4
 $407.6
 $280.3
Other comprehensive income (loss):        
Changes in fair value of cash flow hedges, net of tax expense of $0 0.0
 (0.1)
Reclassification of unrealized losses (gains) on cash flow hedges to net income, net of tax expense of $0 0.1
 (0.1)
Changes in fair value of cash flow hedges, each net of tax expense of $0 (0.1) 0.0
Reclassification of unrealized losses on cash flow hedges to net income, each net of tax expense of $0 0.1
 0.1
Adjustment to redeemable noncontrolling interest 78.8
 —
 —
 78.8
Foreign currency translation adjustments, net of tax expense of $1.6 and $3.5, respectively 57.6
 293.9
Foreign currency translation adjustments, net of tax expense of $1.0 and $1.6, respectively 12.9
 57.6
Other comprehensive income 136.5
 293.7
 12.9
 136.5
Comprehensive income 416.8
 601.1
 420.5
 416.8
Comprehensive loss (income) attributable to noncontrolling interests 12.1
 (45.2)
Allocation of accumulated other comprehensive income resulting from purchase of redeemable noncontrolling interest (52.4) —
Comprehensive loss attributable to noncontrolling interest 0.0
 12.1
Comprehensive income attributable to American Tower Corporation stockholders $428.9
 $555.9
 $368.1
 $428.9

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



AMERICAN TOWER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
 Three Months Ended March 31, Three Months Ended March 31,
 2018 2017 2019 2018
CASH FLOWS FROM OPERATING ACTIVITIES        
Net income $280.3
 $307.4
 $407.6
 $280.3
Adjustments to reconcile net income to cash provided by operating activities        
Depreciation, amortization and accretion 446.3
 421.1
 436.9
 446.3
Amortization of operating leases 152.6
 —
Stock-based compensation expense 42.7
 36.2
 42.5
 42.7
Loss on early retirement of long-term obligations —
 55.4
 0.1
 —
Other non-cash items reflected in statements of operations 96.8
 (45.3) 28.9
 96.8
Increase in net deferred rent balances (3.9) (35.1) (5.3) (3.9)
Reduction in operating lease liability (132.4) —
Increase in assets (95.4) (40.3) (33.0) (95.4)
Increase (decrease) in liabilities 25.0
 (21.2)
(Decrease) increase in liabilities (112.8) 25.0
Cash provided by operating activities 791.8
 678.2
 785.1
 791.8
CASH FLOWS FROM INVESTING ACTIVITIES        
Payments for purchase of property and equipment and construction activities (198.5) (168.1) (220.8) (198.5)
Payments for acquisitions, net of cash acquired (673.4) (777.8) (91.1) (673.4)
Proceeds from sale of short-term investments and other non-current assets 84.0
 3.8
 254.9
 84.0
Payments for short-term investments (478.1) —
 (261.5) (478.1)
Deposits and other (14.6) 21.8
 (4.8) (14.6)
Cash used for investing activities (1,280.6) (920.3) (323.3) (1,280.6)
CASH FLOW FROM FINANCING ACTIVITIES    
CASH FLOWS FROM FINANCING ACTIVITIES    
Borrowings under credit facilities 1,748.3
 1,997.0
 1,700.0
 1,748.3
Proceeds from issuance of senior notes, net 1,241.6
 —
Proceeds from term loan 1,500.0
 —
 1,300.0
 1,500.0
Proceeds from issuance of securities in securitization transaction 500.0
 —
 —
 500.0
Repayments of notes payable, credit facilities, senior notes, secured debt and capital leases (2,584.9) (1,633.4)
(Distributions to) contributions from noncontrolling interest holders, net (0.3) 265.4
Purchases of common stock —
 (147.2)
Repayments of notes payable, credit facilities, senior notes, secured debt, term loan, finance leases and capital leases (4,025.9) (2,584.9)
Distributions to noncontrolling interest holders, net (13.8)
(0.3)
Proceeds from stock options 20.0
 36.9
 27.2
 20.0
Distributions paid on common stock (304.3) (250.4) (377.1) (304.3)
Distributions paid on preferred stock (18.9) (26.8) —
 (18.9)
Payment for early retirement of long-term obligations —
 (61.8)
Deferred financing costs and other financing activities (42.6) (21.8) (76.7) (42.6)
Cash provided by financing activities 817.3
 157.9
Purchase of redeemable noncontrolling interest (425.7) —
Cash (used for) provided by financing activities (650.4) 817.3
Net effect of changes in foreign currency exchange rates on cash and cash equivalents, and restricted cash (4.5) 6.0
 (16.6) (4.5)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH 324.0
 (78.2)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH (205.2) 324.0
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD 954.9
 936.5
 1,304.9
 954.9
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $1,278.9
 $858.3
 $1,099.7
 $1,278.9
CASH PAID FOR INCOME TAXES (NET OF REFUNDS OF $4.7 AND $12.8, RESPECTIVELY) $24.7
 $23.1
CASH PAID FOR INCOME TAXES (NET OF REFUNDS OF $0.3 AND $4.7, RESPECTIVELY) $36.9
 $24.7
CASH PAID FOR INTEREST $228.6
 $231.0
 $249.0
 $228.6
NON-CASH INVESTING AND FINANCING ACTIVITIES:        
(Increase) decrease in accounts payable and accrued expenses for purchases of property and equipment and construction activities $(29.3) $10.1
Purchases of property and equipment under capital leases $9.7
 $11.9
Decrease in accounts payable and accrued expenses for purchases of property and equipment and construction activities $(17.7) $(29.3)
Purchases of property and equipment under finance leases, perpetual easements and capital leases  $16.0
 $9.7
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)
 Preferred Stock - Series A Preferred Stock - Series B Common Stock Treasury Stock 
Additional
Paid-in
Capital
 
Accumulated Other
Comprehensive
Loss
 
Distributions
in Excess of
Earnings
 
Noncontrolling
Interest
 
Total
Equity
 Preferred Stock - Series B Common Stock Treasury Stock 
Additional
Paid-in
Capital
 
Accumulated Other
Comprehensive
Loss
 
Distributions
in Excess of
Earnings
 
Noncontrolling
Interest
 
Total
Equity
 Issued Shares Amount Issued Shares Amount 
Issued
Shares
 Amount Shares Amount 
BALANCE, JANUARY 1, 2017 6,000
 $0.1
 1,375
$0.0
 429,913
 $4.3
 (2,810) $(207.7) $10,043.5
 $(1,999.3) $(1,077.0) $212.3
 $6,976.2
Stock-based compensation related activity —
 —
 —
 —
 1,019
 0.0
 —
 —
 50.5
 —
 —
 —
 50.5
Treasury stock activity —
 —
 —
 —
 

 —
 (1,874) (225.0) 

 —
 —
 —
 (225.0)
Changes in fair value of cash flow hedges, net of tax —
 —
 —
 —
 —
 —
 —
 —
 —
 (0.1) —
 —
 (0.1)
Reclassification of unrealized gains on cash flow hedges to net income —
 —
 —
 —
 —
 —
 —
 —
 —
 (0.1) —
 —
 (0.1)
Foreign currency translation adjustment, net of tax —
 —
 —
 —
 —
 —
 —
 —
 —
 240.1
 —
 2.7
 242.8
Contributions from noncontrolling interest holders —
 —
 —
 —
 —
 —
 —
 —
 —
 —
 —
 314.0
 314.0
Distributions to noncontrolling interest holders —
 —
 —
 —
 —
 —
 —
 —
 —
 —
 —
 (0.4) (0.4)
Common stock distributions declared —
 —
 —
 —
 —
 —
 —
 —
 —
 —
 (266.0) —
 (266.0)
Preferred stock dividends declared —
 —
 —
 —
 —
 —
 —
 —
 —
 —
 (26.8) —
 (26.8)
Net income —
 —
 —
 —
 —
 —
 —
 —
 —
 —
 316.1
 3.7
 319.8
BALANCE, MARCH 31, 2017 6,000
 $0.1
 1,375
$0.0
 430,932
 $4.3
 (4,684) $(432.7) $10,094.0
 $(1,759.4) $(1,053.7) $532.3
 $7,384.9
                           Issued Shares Amount 
Issued
Shares
 Amount Shares Amount 
Additional
Paid-in
Capital
 
Accumulated Other
Comprehensive
Loss
 
Distributions
in Excess of
Earnings
 
Noncontrolling
Interest
 
Total
Equity
BALANCE, JANUARY 1, 2018 —
 $—
 1,375
$0.0
 437,729
 $4.4
 (8,909) $(974.0) $10,247.5
 $(1,978.3) $(1,058.1) $586.6
 $6,828.1
 1,375
 $0.0
 437,729
 $4.4
 (8,909) $(974.0) 
Stock-based compensation related activity —
 —
 —
 —
 756
 0.0
 —
 —
 27.3
 —
 —
 —
 27.3
 —
 —
 756
 0.0
 —
 —
 27.3
 —
 —
 —
 27.3
Conversion of preferred stock —
 —
 (1,375) (0.0) 12,020
 0.1
 —
 —
 (0.1) —
 —
 —
 —
 (1,375) (0.0) 12,020
 0.1
 —
 —
 (0.1) —
 —
 —
 —
Changes in fair value of cash flow hedges, net of tax —
 —
 —
 —
 —
 —
 —
 —
 —
 0.0
 —
 —
 0.0
 —
 —
 —
 —
 —
 —
 —
 0.0
 ���
 —
 0.0
Reclassification of unrealized losses on cash flow hedges to net income —
 —
 —
 —
 —
 —
 —
 —
 —
 0.1
 —
 —
 0.1
Reclassification of unrealized losses on cash flow hedges to net income, net of tax —
 —
 —
 —
 —
 —
 —
 0.1
 —
 —
 0.1
Foreign currency translation adjustment, net of tax —
 —
 —
 —
 —
 —
 —
 —
 —
 64.8
 —
 15.1
 79.9
 —
 —
 —
 —
 —
 —
 —
 64.8
 —
 15.1
 79.9
Adjustment to redeemable noncontrolling interest —
 —
 —
 —
 —
 —
 —
 —
 (50.7) 78.8
 —
 —
 28.1
 —
 —
 —
 —
 —
 —
 (50.7) 78.8
 —
 —
 28.1
Impact of the revenue recognition standard adoption —
 —
 —
 —
 —
 —
 —
 —
 —
 —
 38.4
 —
 38.4
Distributions to noncontrolling interest holders —
 —
 —
 —
 —
 —
 —
 —
 —
 —
 —
 (0.3) (0.3)
Distributions to noncontrolling interest —
 —
 —
 —
 —
 —
 —
 —
 —
 (0.3) (0.3)
Impact of revenue recognition standard adoption —
 —
 —
 —
 —
 —
 —
 —
 38.4
 —
 38.4
Common stock distributions declared —
 —
 —
 —
 —
 —
 —
 —
 —
 —
 (332.3) —
 (332.3) —
 —
 —
 —
 —
 —
 —
 —
 (332.3) —
 (332.3)
Preferred stock dividends declared —
 —
 —
 —
 —
 —
 —
 —
 —
 —
 (18.9) —
 (18.9) —
 —
 —
 —
 —
 —
 —
 —
 (18.9) —
 (18.9)
Net income —
 —
 —
 —
 —
 —
 —
 —
 —
 —
 285.2
 5.7
 290.9
 —
 —
 —
 —
 —
 —
 —
 —
 285.2
 5.7
 290.9
BALANCE, MARCH 31, 2018 —
 $—
 —
$—
 450,505
 $4.5
 (8,909) $(974.0) $10,224.0
 $(1,834.6) $(1,085.7) $607.1
 $6,941.3
 —
 $—
 450,505
 $4.5
 (8,909) $(974.0) $10,224.0
 $(1,834.6) $(1,085.7) $607.1
 $6,941.3
                      
BALANCE, JANUARY 1, 2019 —
 $—
 451,617
 $4.5
 (10,557) $(1,206.8) $10,380.8
 $(2,642.9) $(1,199.5) $563.5
 $5,899.6
Stock-based compensation related activity —
 —
 908
 0.0
 —
 —
 14.7
 —
 —
 —
 14.7
Changes in fair value of cash flow hedges, net of tax —
 —
 —
 —
 —
 —
 —
 (0.1) —
 —
 (0.1)
Reclassification of unrealized losses on cash flow hedges to net income, net of tax —
 —
 —
 —
 —
 —
 —
 0.1
 —
 —
 0.1
Foreign currency translation adjustment, net of tax —
 —
 —
 —
 —
 —
 —
 23.1
 —
 (20.1) 3.0
Distributions to noncontrolling interest —
 —
 —
 —
 —
 —
 —
 —
 —
 (0.3) (0.3)
Purchase of redeemable noncontrolling interest —
 —
 —
 —
 —
 —
 52.4
 (52.4) —
 —
 —
Impact of lease accounting standard adoption —
 —
 —
 —
 —
 —
 —
 —
 (24.7) —
 (24.7)
Common stock distributions declared —
 —
 —
 —
 —
 —
 —
 —
 (399.6) —
 (399.6)
Net income —
 —
 —
 —
 —
 —
 —
 —
 397.4
 10.2
 407.6
BALANCE, MARCH 31, 2019 —
 $—
 452,525
 $4.5
 (10,557) $(1,206.8) $10,447.9
 $(2,672.2) $(1,226.4) $553.3
 $5,900.3

See accompanying notes to unaudited consolidated and condensed consolidated financial statements.
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)



1.DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
American Tower Corporation (together with its subsidiaries, “ATC” or the “Company”) is one of the largest global real estate investment trusts and a leading independent owner, operator and developer of multitenant communications real estate. The Company’s primary business is the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a number of other industries. The Company refers to this business as its property operations. Additionally, the Company offers tower-related services in the United States, which it refers to as its services operations. These services include site acquisition, zoning and permitting (“AZP”) and structural analysis, which primarily support the Company’s site leasing business, including the addition of new tenants and equipment on its sites.
The Company’s portfolio primarily consists of towers that it owns and towers that it operates pursuant to long-term lease arrangements, as well as distributed antenna system (“DAS”) networks, which provide seamless coverage solutions in certain in-building and certain outdoor wireless environments. In addition to the communications sites in its portfolio, the Company manages rooftop and tower sites for property owners under various contractual arrangements. The Company also holds other telecommunications infrastructure, fiber and property interests that it leases primarily to communications service providers and third-party tower operators.

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

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

The use of TRSs enables the Company to continue to engage in certain businesses while complying with REIT qualification requirements. The Company may, from time to time, change the election of previously designated TRSs to be included as part of the REIT. As of March 31, 2018, the Company’s REIT-qualified businesses included its U.S. tower leasing business, its operations in Nigeria, most of its operations in Costa Rica and Mexico, a majority of its operations in Germany and a majority of its indoor DAS networks business and services segment.

The accompanying consolidated and condensed consolidated financial statements have been prepared by American Tower Corporation (together with its subsidiaries, “ATC” or the Company“Company”) pursuant to the rules and regulations of the Securities and Exchange Commission.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, 20172018 (the “2017“2018 Form 10-K”). The results of operations for the three months ended March 31, 20182019 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 or cost method, depending upon the Company’s ability to exercise significant influence over operating and financial policies. All intercompany accounts and transactions have been eliminated. As of March 31, 2018,2019, the Company holds (i) a 51% controlling interest, and MTN Group Limited holds a 49% noncontrolling interest in each of two joint ventures, one in Ghana and one in
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


Uganda, (MTN Group Limited holds a 49% noncontrolling interest), (ii) a 51% controlling interest and PGGM holds a 49% noncontrolling interest, in a joint venture (“ATC Europe”) whichthat primarily consists of the Company’s operations in Germany and France (PGGM holds a 49% noncontrolling interest), (iii) an approximate 75%81% controlling interest, and South African investors hold an approximate 25% noncontrolling interest in a subsidiary of the Company in South Africa (South African investors hold an approximate 19% noncontrolling interest) and (iv) a 63%79% controlling interest in ATC Telecom Infrastructure Private Limited (“ATC TIPL”), formerly Viom Networks Limited (“Viom”), in India.

Significant Accounting Policies—The Company’s significant accounting policies are described in note 1 to the Company’s consolidated financial statements included in the 20172018 Form 10-K. There have been no material changes to the Company’s significant accounting policies during the three months ended March 31, 2018,2019, except the adoption of new revenue recognitionlease accounting guidance, as discussed below.

Changes to Prior-Period Amounts—The Company is now disclosing its results in millions rather than thousands and, as a result, certain rounding adjustments have been made to prior-period amounts.

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 amountamounts shown in the statement of cash flows is as follows:
Three months ended March 31,Three Months Ended March 31,
2018 20172019 2018
Cash and cash equivalents$1,125.4
 $712.8
$1,004.8
 $1,125.4
Restricted cash153.5
 145.5
94.9
 153.5
Total cash and cash equivalents and restricted cash$1,278.9
 $858.3
$1,099.7
 $1,278.9

RevenueLease—The new revenue recognition accountinglease standard requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expectsleases to be entitled in exchangeaccounted for those goods or services. using a right-of-use model, which recognizes that, at the date of commencement, a lessee has a financial obligation to make lease payments to the lessor for the right to use the underlying asset during the lease term. The lessee recognizes a corresponding right-of-use asset related to this right.

On January 1, 2018,2019, the Company adoptedelected to adopt the new revenue recognitionlease standard using the modified retrospective method applied to contractslease arrangements that were not completed as of January 1, 2018.in place on the transition date. Results for reporting periods beginning January 1, 20182019 are presented under the new standard, while prior-period amounts are not adjusted and continue to be reported in accordance with accounting under the previously applicable guidance.

The Company recorded a net reductionelected certain available practical expedients which permit the adopter to opening Distributions in excessnot reassess certain items upon adoption, including: (i) whether any existing contracts are or contain leases, (ii) the classification of earnings in its consolidated balance sheet of $38.4 million as of January 1, 2018 due toexisting leases and (iii) initial direct costs for existing leases. The Company also elected the cumulative impact of adopting the new revenue recognition standard. The impact is primarilypractical expedient related to the Company’s site inspection revenue,easements, which is now recognized at the point in time when the inspection service is completed. The impact to revenuespermits carryforward accounting treatment for the three months ended March 31, 2018 as a result of applying the new standard was an increase of $2.6 million.

The adoption of the new revenue recognition accounting standard did not have a material impactland easements on the Company’s revenue recognition patterns. Most of the Company’s revenue is derived from leasing arrangements and is accounted for as lease revenue. A small portion of the Company’s revenue is either derived from non-lease performance obligations within the lease arrangements or from other agreements with its tenants. This revenue, designated non-lease revenue, is recognized when control of the promised goods or services is transferred to the tenants, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

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

Non-lease revenue is disaggregated by geography in a manner consistent with the Company’s business segments, which are discussed further in note 14 to the consolidated and condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. A summary of non-lease revenue disaggregated by source and geography is as follows:existing agreements.
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)



The Company recorded a net increase to opening Distributions in excess of earnings in its consolidated balance sheet of $24.7 million as of January 1, 2019 due to the cumulative impact of adopting the new lease standard. This adjustment related to right-of-use asset impairments. The Company also recorded a lease liability of $6.9 billion and a corresponding right-of-use asset of $7.1 billion upon adoption of the new lease standard. Those rights and obligations are primarily related to operating leases for ground space underneath the Company’s communications sites. The right-of-use assets recorded include, among other items, amounts previously classified as prepaid rent, deferred lease acquisition costs, fair value adjustments on acquired leases and long-term deferred rent obligations. Finance leases, which primarily relate to towers, equipment and vehicles, were largely unchanged. There was no significant change to the Company’s consolidated statement of operations resulting from the adoption of this standard.

The Company did not elect the practical expedient for short-term leases, which permits an adopter to not apply the lease standard to leases with a remaining maturity of one year or less, and applied the new lease accounting standard to all leases, including short-term leases.
Three Months Ended March 31, 2018 U.S. Asia EMEA 
Latin
America
 Total
Power and fuel pass-through revenue $—
 $92.3
 $34.9
 $4.5
 $131.7
Other non-lease revenue 67.7
 1.9
 0.6
 23.7
 93.9
Total non-lease property revenue $67.7
 $94.2
 $35.5
 $28.2
 $225.6
Services revenue 31.4
 —
 —
 —
 31.4
Total non-lease revenue $99.1
 $94.2
 $35.5
 $28.2
 $257.0
Property lease revenue 863.7
 178.8
 138.7
 303.6
 1,484.8
Total revenue $962.8
 $273.0
 $174.2
 $331.8
 $1,741.8
In conjunction with the adoption of the new lease accounting guidance, the Company applied the lessor and lessee practical expedient and no longer separates lease and non-lease components within a lease agreement when the timing and pattern of revenue recognition for the components are the same and the combined single lease component is classified as an operating lease. Certain amounts, such as power and fuel and common area maintenance, which were previously reported as non-lease revenue, are now accounted for as lease revenue. Accordingly, the Company has reclassified certain prior-period amounts within its disclosures.

Power and fuel pass-through revenueRevenue—Most of the Company’s revenue is derived from leasing arrangements outsideand is accounted for as lease revenue unless the timing and pattern of revenue recognition differs from the U.S. require that the Company provide power to the communications site through an electrical grid connection, diesel fuel generators or other sources and permit the Company to pass through the costs of these services to its tenants. The Company recognizes revenue received in connection with such services as power and fuel pass-through revenue. Many arrangements require that the communications site has power for a specified percentage of time. In most such cases, if delivery of power falls below the specified service level, a corresponding reduction in revenue is recorded. The Company has determined that this performance obligation is satisfied over time for the duration of the arrangement.
Other significant judgmentslease components. Revenue related to this revenue streamdistributed antenna system (“DAS”) networks and fiber results from agreements with tenants that are the (i) determination that the Company is a principal in these transactions and revenue is therefore recorded on a gross basis and (ii) service level related adjustments to revenue.not leases.

Other non-leaseNon-lease revenue—Other non-leaseNon-lease revenue consists primarily of revenue generated from DAS networks, fiber and other property related revenue. DAS networks and fiber arrangements require that the Company provide the tenant the right to use the applicable communications infrastructure. Performance obligations are satisfied over time for the duration of the arrangements. Other property related revenue streams, which include site inspections, are not material on either an individual or consolidated basis.
Services revenue—The Company offers tower-related services in the United States. These services include site AZPacquisition, zoning and permitting (“AZP”) and structural analysis services.analysis. There is a single performance obligation related to AZP, and revenue is recognized over time based on milestones achieved, which are determined based on costs expected to be incurred. Structural analysis services may have more than one performance obligation, contingent upon the number of contracted services. Revenue is recognized at the point in time the services are completed.

SomeA summary of the Company’s contracts with tenants contain multiple performance obligations. For these arrangements, the Company allocatesnon-lease revenue to each performance obligation based on its relative standalone selling price, whichdisaggregated by source and geography is typically based on the price charged to tenants.as follows:
Three Months Ended March 31, 2019 U.S. Asia EMEA 
Latin
America
 Total
Non-lease property revenue $58.8
 $2.4
 $1.6
 $35.0
 $97.8
Services revenue 27.4
 —
 —
 —
 27.4
Total non-lease revenue $86.2
 $2.4
 $1.6
 $35.0
 $125.2
Property lease revenue 927.5
 286.5
 175.9
 298.3
 1,688.2
Total revenue $1,013.7
 $288.9
 $177.5
 $333.3
 $1,813.4

AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

Three Months Ended March 31, 2018 (1) U.S. Asia EMEA 
Latin
America
 Total
Non-lease property revenue $63.1
 $1.9
 $0.6
 $23.7
 $89.3
Services revenue 31.4
 —
 —
 —
 31.4
Total non-lease revenue $94.5
 $1.9
 $0.6

$23.7
 $120.7
Property lease revenue 868.3
 271.1
 173.6
 308.1
 1,621.1
Total revenue $962.8
 $273.0
 $174.2
 $331.8
 $1,741.8
_______________
(1)Prior-period amounts adjusted with the adoption of the new lease accounting guidance, as applicable.

Information about receivables, contract assets and contract liabilities from contracts with tenants is as follows:

 January 1, 2018 March 31, 2018 March 31, 2019 December 31, 2018 (1)
Accounts receivable $222.2
 $234.0
 $91.9
 $92.6
Prepaids and other current assets 79.7
 73.3
 7.7
 7.7
Notes receivable and other non-current assets 24.2
 23.5
 21.3
 22.2
Unearned revenue(2) 26.6
 33.3
 43.2
 35.0
Other non-current liabilities(3) 68.5
 65.2
 54.1
 54.1
_______________
(1)Prior-period amounts adjusted with the adoption of the new lease accounting guidance, as applicable.
(2)Excludes $55.9 million and $55.0 million of capital contributions related to DAS networks as of March 31, 2019 and December 31, 2018, respectively.
(3)Excludes $302.6 million and $313.6 million of capital contributions related to DAS networks as of March 31, 2019 and December 31, 2018, respectively.

The Company records unearned revenue when payments are received from tenants in advance of the completion of the Company’s performance obligations. Long-term unearned revenue is included in Other non-current liabilities. The
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


increase in the Unearned revenue for the three months ended March 31, 20182019 is due to payments received, offset by $17.9$14.1 million of revenue recognized in the three months ended March 31, 2018this period that was included in the Unearned revenue balance as of December 31, 2018. During the three months ended March 31, 2018, the Company recognized $10.4 million of revenue from the Unearned revenue balance as of January 1, 2018. The Company also recognized revenues of $14.5 million and $13.8 million for capital contributions related to DAS networks during the three months ended March 31, 2019 and 2018, respectively. There was $0.1 million of revenue recognized from Other non-current liabilities during each of the three months ended March 31, 2019 and 2018.

The Company records unbilled receivables, which are included in Prepaids and other current assets, when it has completed a performance obligation prior to its ability to bill under the customer arrangement. Other contract assets are included in Notes receivable and other non-current assets. The decrease in unbilled receivables attributable to revenue recognized during each of the three months ended March 31, 2019 and 2018 was less than $0.1 million. The change in contract assets attributable to revenue recognized during the three months ended March 31, 2019 and 2018 was $0.8 million and less than $0.1 million.million, respectively.

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

Accounting Standards Updates—In January 2016, the Financial Accounting Standards Board (the “FASB”) issued new guidance on the recognition and measurement of financial assets and financial liabilities. The guidance amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this guidance did not have a material impact on the Company’s financial statements.

In February 2016, the FASB issued new guidance on the accounting for leases. The guidance amends the existing accounting standards for lease accounting, including the requirement that lessees recognize right of use assets and lease liabilities for leases with terms greater than twelve months in the statement of financial position. Under the new guidance, lessor accounting is largely unchanged. This guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018. The Company (i) has established a multidisciplinary team to assess and implement the new guidance, (ii) expects the guidance to have a material impact on its consolidated balance sheets due to the recording of right of use assets and lease liabilities for leases in which it is a lessee and which it currently treats as operating leases and (iii) continues to evaluate the impact of the new guidance.

In January 2018, the FASB issued new guidance on the treatment of land easements. The guidance provides a practical expedient to not evaluate existing or expired land easements under the new lease accounting standards if those easements were not previously accounted for as leases under the existing lease guidance. The Company does not expect the adoption of this guidance to have a material impact on its financial statements or its adoption of the lease accounting guidance.

In January 2017, the FASB issued new guidance on accounting for goodwill impairments. The guidance eliminates Step 2 from the goodwill impairment test and requires, among other things, recognition of an impairment loss when the carrying value of a reporting unit exceeds its fair value. The loss recognized is limited to the total amount of goodwill allocated to that reporting unit. The guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of this guidance to have a material impact on itsthe Company’s financial statements.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES
In August 2017, the FASB issued new guidance on hedge and derivative accounting. The guidance simplifies accounting rules around hedge accounting and the disclosures of hedging arrangements. Among other things, the guidance eliminates the need to separately measure and report hedge ineffectiveness and generally requires the entire changeNOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its financial statements.millions, unless otherwise noted)

In February 2018,2.    PREPAID AND OTHER CURRENT ASSETS
Prepaid and other current assets consisted of the FASB issued new guidance on the treatment of tax effects that are presentedfollowing:
 As of
 March 31, 2019 December 31, 2018
Unbilled receivables$131.3
 $126.1
Prepaid income tax102.2
 125.1
Value added tax and other consumption tax receivables85.1
 86.3
Prepaid assets54.0
 40.5
Prepaid operating ground leases—
 165.0
Other miscellaneous current assets98.6
 78.2
Prepaids and other current assets$471.2
 $621.2

The reduction in other comprehensive income. The guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects asPrepaid operating ground leases is a result of the reclassification of assets to the Right-of-use asset in connection with the Company’s adoption of the new lease accounting standard.

3.    PROPERTY AND EQUIPMENT
Property and equipment (including assets held under financing leases) consisted of the following:
 Estimated Useful  Lives (years) (1) As of
  March 31, 2019 December 31, 2018
TowersUp to 20 $12,850.9
 $12,777.9
Equipment (2)2 - 20 1,700.7
 1,667.3
Buildings and improvements3 - 32 632.6
 628.5
Land and improvements (3)Up to 20 2,318.3
 2,285.4
Construction-in-progress  364.8
 358.1
Total  17,867.3
 17,717.2
Less accumulated depreciation  (6,664.7) (6,470.1)
Property and equipment, net  $11,202.6
 $11,247.1
_______________
(1)Assets on leased land are depreciated over the shorter of the estimated useful life of the asset or the term of the corresponding ground lease taking into consideration lease renewal options and residual value.
(2)Includes fiber and DAS assets.
(3)Estimated useful lives apply to improvements only.

Depreciation expense for the three months ended March 31, 2019 and 2018 was $223.7 million and $222.5 million, respectively. Included in depreciation expense for the three months ended March 31, 2019 was $42.4 million related to finance lease assets.

As of December 2017 legislation commonly referred to as the Tax Cuts31, 2018, property and Jobs Act. The guidance is effective for fiscal years,equipment included $4,369.5 million of capital lease assets with related equipment and for interim periods within those fiscal years, beginningimprovements and $1,016.2 million of accumulated depreciation.
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

Information about finance lease-related balances is as follows:
    As of
Finance leases: Classification March 31, 2019
Property and equipment Towers $2,780.9
Accumulated depreciation   (1,042.6)
Property and equipment, net   1,738.3
     
Property and equipment Buildings and improvements $171.1
Accumulated depreciation   (60.4)
Property and equipment, net   $110.7
     
Property and equipment Land $130.3
     
Property and equipment Equipment $38.1
Accumulated depreciation   (9.6)
Property and equipment, net   $28.5

As of March 31, 2019, the Company had $1,458.1 million of perpetual land easements which are not depreciable.

4.   LEASES-50-3, 842-20-50-9]

The Company determines if an arrangement is a lease at the inception of the agreement. The Company determines an arrangement is a lease if it conveys the right to control the use of the communications site or ground space underneath a communications site for a period of time in exchange for consideration. The Company is both a lessor and a lessee.
Lessor—The Company is a lessor in most of its revenue arrangements, as property revenue is derived from tenant leases of specifically-identified, physically distinct space on the Company’s communications real estate assets. The Company’s lease arrangements with its tenants vary depending upon the region and the industry of the tenant and generally have initial non-cancellable terms of five to ten years with multiple renewal terms. The leases also contain provisions that periodically increase the rent due, typically annually, based on a fixed escalation percentage or an inflationary index, or a combination of both. The Company structures its leases to include financial penalties if a tenant terminates the lease, which serve to disincentivize tenants from terminating the lease prior to the expiration of the lease term.
The Company’s leasing arrangements outside of the U.S. may require that the Company provide power to the communications site through an electrical grid connection, diesel fuel generators or other sources and permit the Company to pass through the costs of, or otherwise charge for, these services. Many arrangements require that the communications site has power for a specified percentage of time. In most cases, if delivery of power falls below the specified service level, a corresponding reduction in revenue is recorded. The Company has determined that this performance obligation is satisfied over time for the duration of the lease.
The Company typically has more than one tenant on a site and, by performing repair and maintenance work, can often lease a site, either through renewing existing agreements or leasing to new tenants, for periods beyond the existing tenant lease term. Accordingly, the Company has minimal risk with respect to the residual value of its leased assets. Communications sites are depreciated over their estimated useful lives, which generally does not exceed twenty years.
As of March 31, 2019, the Company does not have any material related party leases as a lessor. The Company generally does not enter into sales-type leases or direct financing leases. The Company’s leases generally do not include any incentives for the lessee and do not include any lessee purchase options. 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 2018 Form 10-K. As of March 31, 2019, there was no impairment recorded related to these assets.


AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

afterHistorically, the Company has been able to successfully renew its ground leases as needed to ensure its tower revenue. Accordingly, the Company assumes that it will have access to the land underneath its tower sites when calculating future minimum rental receipts. Future minimum rental receipts expected under non-cancellable operating lease agreements as of March 31, 2019 were as follows:
Fiscal Year  Amount (1)
Remainder of 2019 $3,987.3
2020 5,143.4
2021 4,739.9
2022 3,821.5
2023 3,516.4
Thereafter 13,254.4
Total $34,462.9
_______________
(1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.    

Future minimum rental receipts expected under non-cancellable operating lease agreements in effect at December 15,31, 2018 were as follows:
Year Ended December 31,  Amount (1)
2019 $5,251.2
2020 5,062.2
2021 4,676.1
2022 3,754.6
2023 3,457.3
Thereafter 12,641.1
Total $34,842.5
_______________
(1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.    

Lessee—The Company enters into arrangements as a lessee primarily for ground space underneath its communications sites. These arrangements are typically long-term lease agreements with earlyinitial non-cancellable terms of approximately five to ten years with one or more automatic or exercisable renewal periods and specified increases in lease payments upon exercise of the renewal options. The Company typically exercises its ground lease renewal options in order to provide ongoing tenant space on its communications sites through the end of the tenant lease term. Escalation clauses present in operating leases, excluding those tied to a consumer price index (“CPI”) or other inflation-based indices, are recognized on a straight-line basis over the estimated lease term of the applicable lease. Additionally, the escalations tied to CPI or another inflation-based index are considered variable lease payments. In certain circumstances, the Company enters into revenue sharing arrangements with the ground space owner, which results in variability in lease payments. In most markets outside of the U.S., in the event there are no tenants on the communications site, the Company generally has unilateral termination rights and in certain situations, the lease is structured to allow for termination by the Company with minimal or no penalties. Ground lease arrangements usually include annual escalations and do not contain any residual value guarantees or restrictions on dividends, other financial obligations or other similar terms. The Company has entered into certain transactions whereby at the end of a lease, sublease or similar arrangement, the Company has the option to purchase the corresponding communications sites. These transactions are further described in note 15.
The Company’s lease liability is the present value of the remaining minimum rental payments to be made over the remaining lease term, including renewal options reasonably certain to be exercised. The Company also considers termination options and factors those into the determination of lease payments when appropriate. To determine the lease term, the Company considers all renewal periods that are reasonably certain to be exercised, taking into consideration all economic factors, including the communications site’s estimated economic life (generally 20 years) and the respective lease terms of the Company’s tenants under the existing lease arrangements on such site.
As of the adoption permitted.date and new lease inception, the Company’s right-of-use asset is equal to its lease liability, plus payments made prior to the commencement date and initial direct costs, net of any impairment losses, lease incentives,
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

fair value adjustments on acquired leases and deferred rent amount recorded under the prior lease accounting guidance. As of March 31, 2019, the Company does not have any material related party leases as a lessee. The Company does not expecthave any sale-leaseback arrangements as lessee and typically does not enter into leveraged leases.
The Company leases certain land and office space under operating leases and land and improvements, towers and vehicles under finance leases. As of March 31, 2019, operating lease assets were included in Right-of-use asset and finance lease assets were included in Property and equipment, net in the adoptionconsolidated balance sheet.
Information about other lease-related balances as of this guidanceMarch 31, 2019 is as follows:
Operating leases:  
Right-of-use asset $7,080.9
   
Current portion of lease liabilities $498.4
Lease liabilities 6,316.1
Total operating lease liabilities $6,814.5
   
Finance leases:  
Current portion of lease liabilities $6.5
Lease liabilities 21.8
Total finance lease liabilities $28.3
As most of the Company’s leases do not specifically state an implicit rate, the Company uses a market-specific incremental borrowing rate consistent with the lease term as of the lease commencement date when calculating the present value of remaining lease payments. The incremental borrowing rate reflects the cost to borrow on a securitized basis in each market. The remaining lease term does not reflect all renewal options available to the Company, only those renewal options that the Company has assessed as reasonably certain taking into consideration the economic factors noted above.
The weighted-average remaining lease terms and incremental borrowing rates as of March 31, 2019 are as follows:
Operating leases:
Weighted-average remaining lease term (years)13.0
Weighted-average incremental borrowing rate6.1%
Finance leases:
Weighted-average remaining lease term (years)9.2
Weighted-average incremental borrowing rate6.0%

The following table sets forth the components of lease cost for the three months ended March 31, 2019:
Operating lease cost $255.0
Variable lease costs not included in lease liability (1) 52.3
   
Finance lease cost:  
Amortization of right-of-use asset $1.8
Interest on lease liabilities 0.4
Total finance lease cost $2.2
_______________
(1)Includes property tax paid on behalf of the landlord.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

Supplemental cash flow information for the three months ended March 31, 2019 is as follows:
Cash paid for amounts included in the measurement of lease liabilities:  
Operating cash flows from operating leases $(234.9)
Operating cash flows from finance leases $(0.3)
Financing cash flows from finance leases $(1.3)
   
Non-cash items:  
New operating leases $62.1
Operating lease modifications and reassessments $30.1

As of March 31, 2019, the Company does not have a material impact on its financial statements.operating or financing leases that have not yet commenced.

Maturities of operating and finance lease liabilities as of March 31, 2019 were as follows:
Fiscal Year Operating Lease (1) Finance Lease (1)
Remainder of 2019 $658.0
 $6.0
2020 870.7
 6.8
2021 853.1
 3.9
2022 813.3
 3.3
2023 773.6
 2.0
Thereafter 6,137.5
 24.8
Total lease payments 10,106.2
 46.8
Less amounts representing interest (3,291.7) (18.5)
Total lease liabilities 6,814.5
 28.3
Less current portion of lease liabilities (498.4) (6.5)
Non-current lease liabilities $6,316.1
 $21.8
_______________
(1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.

Future minimum rental payments under non-cancellable operating leases as of December 31, 2018 is as follows:
Year Ended December 31,  Amount (1)
2019 $926.0
2020 904.2
2021 879.8
2022 834.2
2023 792.6
Thereafter 6,173.1
Total $10,509.9
_______________
(1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

Future minimum rental payments under capital leases in effect as of December 31, 2018 were as follows:
Year Ended December 31,  Amount (1)
2019 $40.7
2020 32.7
2021 27.8
2022 23.7
2023 19.2
Thereafter 117.5
Total 261.6
Less amounts representing interest (82.1)
Present value of capital lease obligations $179.5
_______________
(1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.

Included in the future minimum rental payments under capital leases and amounts representing interest as of December 31, 2018 were $220.3 million and $69.3 million, respectively, related to perpetual land easements, which are not accounted for as finance leases under the new lease accounting standard.

2.    PREPAID AND OTHER CURRENT ASSETS
Prepaid and other current assets consisted of the following:
 As of
 March 31, 2018 December 31, 2017
Prepaid operating ground leases$150.6
 $148.6
Prepaid income tax136.5
 136.5
Unbilled receivables110.7
 107.9
Value added tax and other consumption tax receivables63.6
 64.2
Prepaid assets42.5
 39.6
Other miscellaneous current assets67.3
 71.8
Prepaid and other current assets$571.2
 $568.6

3.5.    GOODWILL AND OTHER INTANGIBLE ASSETS

The changes in the carrying value of goodwill for each of the Company’s business segments were as follows:
  Property Services Total
  U.S. Asia EMEA Latin America 
Balance as of January 1, 2018 $3,379.2
 $1,095.0
 $404.9
 $757.3
 $2.0
 $5,638.4
Effect of foreign currency translation —
 (21.9) 10.8
 19.8
 —
 8.7
Balance as of March 31, 2018 $3,379.2
 $1,073.1
 $415.7
 $777.1
 $2.0
 $5,647.1
  Property Services Total
  U.S. Asia EMEA Latin America 
Balance as of January 1, 2019 $3,382.5
 $1,045.5
 $381.3
 $690.6
 $2.0
 $5,501.9
Additions and adjustments (1) 30.1
 —
 —
 —
 —
 30.1
Effect of foreign currency translation —
 9.2
 (6.8) 3.8
 —
 6.2
Balance as of March 31, 2019 $3,412.6
 $1,054.7
 $374.5
 $694.4
 $2.0
 $5,538.2

_______________
(1)Additions consist of $30.9 million resulting from 2019 acquisitions offset by $0.8 million from revisions to prior-year acquisitions due to measurement period adjustments.

The Company’s other intangible assets subject to amortization consisted of the following:
 
  As of March 31, 2018 As of December 31, 2017
Estimated Useful
Lives		 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net Book
Value
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net Book
Value
  As of March 31, 2019 As of December 31, 2018
(years)  Estimated Useful
Lives (years)		 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net Book
Value
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net Book
Value
Acquired network location intangibles (1)Up to 20
 $4,922.5
 $(1,584.1) $3,338.4
 $4,858.8
 $(1,525.3) $3,333.5
Up to 20 $4,780.2
 $(1,762.3) $3,017.9
 $4,780.3
 $(1,704.9) $3,075.4
Acquired tenant-related intangibles15-20
 11,431.9
 (2,883.7) 8,548.2
 11,150.9
 (2,754.7) 8,396.2
15-20 11,212.8
 (3,278.0) 7,934.8
 11,156.5
 (3,147.2) 8,009.3
Acquired licenses and other intangibles3-20
 60.5
 (10.2) 50.3
 58.8
 (8.1) 50.7
3-20 105.3
 (15.2) 90.1
 104.1
 (14.5) 89.6
Economic Rights, TV Azteca70
 15.7
 (12.4) 3.3
 14.5
 (11.6) 2.9
Total other intangible assets  $16,430.6
 $(4,490.4) $11,940.2
 $16,083.0
 $(4,299.7) $11,783.3
 $16,098.3
 $(5,055.5) $11,042.8
 $16,040.9
 $(4,866.6) $11,174.3
_______________
(1)Acquired network location intangibles are amortized over the shorter of the term of the corresponding ground lease, taking into consideration lease renewal options and residual value, or up to 20 years, as the Company considers these intangibles to be directly related to the tower assets.
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

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 communications sites. The acquired tenant-
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


relatedtenant-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.
The Company amortizes its acquired network location intangibles and tenant-related intangibles on a straight-line basis over their estimated useful lives. As of March 31, 2018,2019, the remaining weighted average amortization period of the Company’s intangible assets excluding the TV Azteca Economic Rights detailed in note 5 to the Company’s consolidated financial statements included in the 2017 Form 10-K, was 1514 years. Amortization of intangible assets for the three months ended March 31, 2019 and 2018 and 2017 was $202.4$192.7 million and $183.2$202.4 million, respectively. Based on current exchange rates, the Company expects to record amortization expense as follows over the remaining current year and the five subsequent years:
 
Remainder of 2018$620.6
2019823.8
Fiscal Year Amount
Remainder of 2019 $586.7
2020804.1
 763.4
2021787.6
 746.9
2022783.1
 742.5
2023778.7
 738.2
2024 734.9

4.6.    NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS
Notes receivable and other non-current assets consisted of the following:
 As of
 March 31, 2019 December 31, 2018
Long-term prepaid ground rent—
 607.5
Notes receivable0.9
 1.0
Other miscellaneous assets278.2
 354.1
Notes receivable and other non-current assets$279.1
 $962.6

The reduction in Long-term prepaid ground rent is a result of the reclassification of assets to the Right-of-use asset in connection with the Company’s adoption of the new lease accounting standard.

7.    ACCRUED EXPENSES
Accrued expenses consisted of the following:
As ofAs of
March 31, 2018 December 31, 2017March 31, 2019 December 31, 2018
Accrued property and real estate taxes$156.9
 $154.4
$177.1
 $169.7
Accrued pass-through costs80.1
 71.2
Amounts payable to tenants62.0
 60.8
78.2
 93.5
Accrued rent57.4
 54.0
69.6
 61.4
Payroll and related withholdings54.1
 82.2
60.5
 90.4
Accrued pass-through costs52.9
 59.7
Accrued construction costs28.1
 41.5
Accrued income tax payable35.7
 15.3
23.3
 57.9
Accrued pass-through taxes35.5
 25.3
9.5
 2.2
Accrued construction costs21.9
 31.9
Other accrued expenses349.0
 370.7
337.3
 360.5
Total accrued expenses$825.4
 $854.3
$863.7
 $948.3

AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


5.8.    LONG-TERM OBLIGATIONS

Outstanding amounts under the Company’s long-term obligations, reflecting discounts, premiums, debt issuance costs and fair value adjustments due to interest rate swaps consisted of the following:
As of  As of 
March 31, 2018 December 31, 2017 Maturity DateMarch 31, 2019 December 31, 2018 Maturity Date
2018 Term Loan (1)$1,499.2
 $—
 March 29, 2019
2018 Term Loan (1) (2)$—
 $1,499.8
 March 29, 2019
2019 Term Loan (1)1,299.4
 —
 February 13, 2020
2013 Credit Facility (1)1,641.8
 2,075.6
 June 28, 20212,340.0
 1,875.0
 June 28, 2022
2013 Term Loan (1)994.7
 994.5
 January 31, 2023995.0
 994.8
 January 31, 2024
2014 Credit Facility (1)600.0
 495.0
 January 31, 2023—
 —
 January 31, 2024
3.40% senior notes999.9
 999.8
 February 15, 2019
3.40% senior notes (3)—
 1,000.0
 February 15, 2019
2.800% senior notes746.7
 746.3
 June 1, 2020748.2
 747.8
 June 1, 2020
5.050% senior notes698.2
 698.0
 September 1, 2020
5.050% senior notes (4)698.9
 698.7
 September 1, 2020
3.300% senior notes746.3
 746.0
 February 15, 2021747.5
 747.2
 February 15, 2021
3.450% senior notes645.4
 645.1
 September 15, 2021646.7
 646.3
 September 15, 2021
5.900% senior notes498.0
 497.8
 November 1, 2021498.5
 498.4
 November 1, 2021
2.250% senior notes564.5
 572.4
 January 15, 2022578.9
 572.7
 January 15, 2022
4.70% senior notes696.9
 696.7
 March 15, 2022697.6
 697.4
 March 15, 2022
3.50% senior notes991.3
 990.9
 January 31, 2023993.0
 992.6
 January 31, 2023
3.000% senior notes682.4
 692.5
 June 15, 2023694.1
 687.5
 June 15, 2023
5.00% senior notes1,002.4
 1,002.4
 February 15, 20241,002.2
 1,002.1
 February 15, 2024
3.375% senior notes643.5
 —
 May 15, 2024
1.375% senior notes605.1
 589.1
 April 4, 2025552.2
 564.0
 April 4, 2025
4.000% senior notes741.3
 741.0
 June 1, 2025742.3
 742.1
 June 1, 2025
4.400% senior notes495.8
 495.6
 February 15, 2026496.2
 496.1
 February 15, 2026
1.950% senior notes554.0
 566.0
 May 22, 2026
3.375% senior notes985.2
 984.8
 October 15, 2026986.7
 986.3
 October 15, 2026
3.125% senior notes397.1
 397.1
 January 15, 2027397.4
 397.3
 January 15, 2027
3.55% senior notes743.0
 742.8
 July 15, 2027743.6
 743.5
 July 15, 2027
3.600% senior notes691.3
 691.1
 January 15, 2028692.1
 691.9
 January 15, 2028
3.950% senior notes588.9
 —
 March 15, 2029
Total American Tower Corporation debt17,666.5
 16,494.5
 18,336.9
 17,847.5
 
        
Series 2013-1A securities (2)—
 499.8
 N/A
Series 2013-2A securities (3)1,292.2
 1,291.8
 March 15, 2023
Series 2018-1A securities (3)493.0
 —
 March 15, 2028
Series 2015-1 notes (4)348.2
 348.0
 June 15, 2020
Series 2015-2 notes (5)520.3
 520.1
 June 16, 2025
India indebtedness (6)518.6
 512.6
 Various
India preference shares (7)25.6
 26.1
 March 2, 2020
Shareholder loans (8)101.8
 100.6
 Various
Other subsidiary debt (1) (9)239.6
 246.1
 Various
Series 2013-2A securities (5)1,293.8
 1,293.4
 March 15, 2023
Series 2018-1A securities (5)493.7
 493.5
 March 15, 2028
Series 2015-1 notes (6)349.0
 348.8
 June 15, 2020
Series 2015-2 notes (7)520.9
 520.8
 June 16, 2025
India indebtedness (8)—
 240.1
 Various
India preference shares (9)—
 23.9
 March 2, 2020
Shareholder loan (10)53.4
 59.9
 December 31, 2019
Other subsidiary debt (11)128.3
 152.5
 Various
Total American Tower subsidiary debt3,539.3
 3,545.1
 2,839.1
 3,132.9
 
Other debt, including capital lease obligations166.2
 165.5
 
Finance and capital lease obligations28.3
 179.5
 
Total21,372.0
 20,205.1
 21,204.3
 21,159.9
 
Less current portion of long-term obligations(2,803.2) (774.8) (2,097.2) (2,754.8) 
Long-term obligations$18,568.8
 $19,430.3
 $19,107.1
 $18,405.1
 
_______________
(1)Accrues interest at a variable rate.
(2)Repaid in full on February 14, 2019 using proceeds from the March 2018 payment date.
(3)Maturity date reflects the anticipated repayment date; final legal maturity is March 15, 2048.
(4)Maturity date reflects the anticipated repayment date; final legal maturity is June 15, 2045.
(5)Maturity date reflects the anticipated repayment date; final legal maturity is June 15, 2050.
(6)Denominated in Indian Rupees (“INR”). Includes India working capital facility, remaining debt assumed by the Company in connection with the Viom Acquisition2019 Term Loan (as defined in note 9)below) and debt that has been entered into by ATC TIPL.cash on hand.
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


(3)Repaid in full on the maturity date in February 2019 with borrowings from the 2013 Credit Facility and the 2014 Credit Facility (each defined below).
(4)Repaid in full on April 22, 2019 with borrowings from the 2014 Credit Facility and cash on hand.
(5)Maturity date reflects the anticipated repayment date; final legal maturity is March 15, 2048.
(6)Maturity date reflects the anticipated repayment date; final legal maturity is June 15, 2045.
(7)Maturity date reflects the anticipated repayment date; final legal maturity is June 15, 2050.
(8)Denominated in Indian Rupees (“INR”). Included India working capital facilities, remaining debt assumed by the Company in connection with the Viom Acquisition (as defined in note 12) and debt that has been entered into by ATC TIPL. During the three months ended March 31, 2019, the Company repaid all remaining debt assumed in connection with the Viom Acquisition and debt entered into by ATC TIPL.
(9)Mandatorily redeemable preference shares (the “Preference Shares”) denominated in INR and classified as debt. The Preference Shares are to bewere redeemed on March 2, 2020 and have a dividend rate of 10.25% per annum. Denominated in INR.2019.
(8)(10)Reflects balancesbalance owed to the Company’s joint venture partnerspartner in Ghana and Uganda.Ghana. The Ghana loan is denominated in Ghanaian Cedi and the Uganda loan is denominated in Ugandan Shillings.(“GHS”).
(9)(11)Includes the BR Towers debentures and the Brazil credit facility, which are denominated in Brazilian Reais and amortize through October 15, 2023 and January 15, 2022, respectively, the South African credit facility, which is denominated in South African Rand and amortizes through December 17, 2020, and the Colombian credit facility, which is denominated in Colombian Pesos and amortizes through April 24, 2021.2021, the Brazil credit facility, which is denominated in Brazilian Reais and amortizes through January 15, 2022, the Kenya debt, which is denominated in U.S. Dollars (“USD”) and is payable either (i) in future installments subject to the satisfaction of specified conditions or (ii) three years from the note origination date, and U.S. subsidiary debt related to a seller-financed acquisition.

Current portion of long-term obligations—The Company’s current portion of long-term obligations primarily includes (i) 14.6 billion INR ($223.6 million) of India indebtedness, (ii) $1.5$1.3 billion under its unsecured term loan entered into on March 29, 2018February 14, 2019 (the “2018“2019 Term Loan”) and (iii) $999.9, (ii) $698.9 million under the 3.40%5.050% senior unsecured notes due 2019.2020 (the “5.050% Notes”) and (iii) 294.4 million GHS ($53.4 million) of the shareholder loan owed to the Company’s joint venture partner in Ghana.

Securitized Debt—Cash flows generated by the 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 pay 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.

Securitizations

Senior Notes
Secured Tower Revenue Securities, Series 2018-1, Subclass A and Series 2018-1, Subclass R—Repayment of 3.40% Senior Notes—On March 29, 2018,the February 15, 2019 maturity date, the Company completed a securitization transaction (the “2018 Securitization”), in which the American Tower Trust I (the “Trust”) issued $500.0 millionrepaid $1.0 billion aggregate principal amount of Secured Tower Revenue Securities, Series 2018-1, Subclass A3.40% senior unsecured notes due 2019 (the “Series 2018-1A Securities”). To satisfy the applicable risk retention requirements of Regulation RR promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act” and, such requirements, the “Risk Retention Rules”), the Trust issued, and one of the Company’s affiliates purchased, $26.4 million aggregate principal amount of Secured Tower Revenue Securities, Series 2018-1, Subclass R (the “Series 2018-1R Securities” and, together with the Series 2018-1A Securities, the “2018 Securities”) to retain an “eligible horizontal residual interest” (as defined in the Risk Retention Rules) in an amount equal to at least 5% of the fair value of the 2018 Securities.

The assets of the Trust consist of a nonrecourse loan (the “Loan”) made by the Trust to American Tower Asset Sub, LLC and American Tower Asset Sub II, LLC (together, the “AMT Asset Subs”“3.40% Notes”). The AMT Asset Subs are jointly and severally liable under the Loan, which is secured primarily by mortgages on the AMT Asset Subs’ interests in 5,116 broadcast and wireless communications towers and related assets (the “Trust Sites”).
The 2018 Securities correspond to components of the Loan made to the AMT Asset Subs pursuant to the Second Amended and Restated Loan and Security Agreement among the Trust and the AMT Asset Subs, dated as of March 29, 2018 (the “Loan Agreement”) and3.40% Notes were issued in two separate subclasses of the same series. The 2018 Securities represent a pass-through interest in the components of the Loan corresponding to the 2018 Securities. The Series 2018-1A Securities have an interest rate of 3.652% and the Series 2018-1R Securities have an interest rate of 4.459%. The 2018 Securities have an expected life of approximately ten yearsrepaid with a final repayment date in March 2048.
The debt service on the Loan will be paid solelyborrowings from the cash flows generated from the operation of the Trust Sites held by the AMT Asset Subs. The AMT Asset Subs are required to make monthly payments of interest on the Loan. Subject to certain limited exceptions described below, no payments of principal will be required to be made on the components of the Loan corresponding to the 2018 Securities prior to the monthly payment date in March 2028, which is the anticipated repayment date for such components.
The AMT Asset Subs may prepay the Loan at any time provided it is accompanied by applicable prepayment consideration. If the prepayment occurs within thirty-six months of the anticipated repayment date for the 2018 Securities, no prepayment consideration is due. The entire unpaid principal balance of the components of the Loan corresponding to the 2018 Securities will be due in March 2048.
Under the Loan Agreement, the AMT Asset Subs are required to maintain reserve accounts, including for ground rents, real estate and personal property taxes and insurance premiums, and, in certain circumstances, to reserve a portion of advance rents from tenants on the Trust Sites. Based on the terms of the Loan Agreement, all rental cash receipts received each month are reserved for the succeeding month and held in an account controlled by the trustee and then
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


released. The $88.8 million held in the reserve accounts as of March 31, 2018 is classified as restricted cash on the Company’s accompanying condensed consolidated balance sheet.
The Secured Tower Revenue Securities, Series 2013-2A (the “Series 2013-2A Securities”) issued in a securitization transaction in March 2013 (the “2013 Securitization” and, together with the 2018 Securitization, the “Trust Securitizations”) remain outstanding and are subject to the terms of the Second Amended and Restated Trust and Servicing Agreement entered into in connection with the 2018 Securitization. The component of the Loan corresponding to the Series 2013-2A Securities also remains outstanding and is subject to the terms of the Loan Agreement. The Loan Agreement includes terms and conditions, including with respect to secured assets, substantially consistent with the First Amended and Restated Loan and Security Agreement dated as of March 15, 2013, and as further described in note 8 to the Company’s consolidated financial statements included in the 2017 Form 10-K.

Bank Facilities

2013 Credit Facility—During the three months ended March 31, 2018, the Company borrowed an aggregate of $620.0 million and repaid an aggregate of $1.1 billion of revolving indebtedness under its multicurrency senior unsecured revolving credit facility entered into in June 2013, as amended (the “2013 Credit Facility”). The Company used and the borrowings to fund acquisitions and for general corporate purposes.

2014 Credit Facility—During the three months ended March 31, 2018, the Company borrowed an aggregate of $1.1 billion and repaid an aggregate of $945.0 million of revolving indebtedness under itsCompany’s senior unsecured revolving credit facility entered into in January 2012 and amended and restated in September 2014, as further amended (the “2014 Credit Facility”). Upon completion of the repayment, none of the 3.40% Notes remain outstanding.

3.375% Senior Notes and 3.950% Senior Notes Offering—On March 15, 2019, the Company completed a registered public offering of $650.0 million aggregate principal amount of 3.375% senior unsecured notes due 2024 (the “3.375% Notes”) and $600.0 million aggregate principal amount of 3.950% senior unsecured notes due 2029 (the “3.950% Notes” and, collectively with the 3.375% Notes, the “Notes”). The net proceeds from this offering were approximately $1,231.0 million, after deducting commissions and estimated expenses. The Company used the net proceeds to repay existing indebtedness under the 2013 Credit Facility and 2014 Credit Facility.

The 3.375% Notes will mature on May 15, 2024 and bear interest at a rate of 3.375% per annum. The 3.950% Notes will mature on March 15, 2029 and bear interest at a rate of 3.950% per annum. Accrued and unpaid interest on the 3.375% Notes will be payable in U.S. Dollars semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2019. Accrued and unpaid interest on the 3.950% Notes will be payable in U.S. Dollars semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2019. Interest on the Notes will accrue from March 15, 2019 and will be computed on the basis of a 360-day year comprised of twelve 30-day months. 

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 3.375% Notes on or after April 15, 2024 or the 3.950% Notes on or after December 15, 2028, it will not be required to pay a make-whole premium. In addition, if the Company undergoes a change of control and corresponding ratings decline, each as defined in the supplemental indenture, it may be required to repurchase all of the Notes at a purchase price equal to 101% of the principal amount of such Notes, plus accrued and unpaid interest
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

(including additional interest, if any), up to but not including the repurchase date. The Notes rank equally with all of the Company’s other senior unsecured debt and are structurally subordinated to all existing and future indebtedness and other obligations of its subsidiaries.

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

Bank Facilities
2013 Credit Facility—During the three months ended March 31, 2019, the Company borrowed an aggregate of $995.0 million and repaid an aggregate of $530.0 million of revolving indebtedness under the 2013 Credit Facility. The Company used the borrowings to fund acquisitions, to purchase noncontrolling interests in its Indian subsidiary, ATC TIPL, to repay existing indebtedness and for general corporate purposes.

2014 Credit Facility—During the three months ended March 31, 2019, the Company borrowed an aggregate of $705.0 million and repaid an aggregate of $705.0 million of revolving indebtedness under the 2014 Credit Facility. The Company used the borrowings to repay existing indebtedness including the Secured Tower Revenue Securities, Series 2013-1A, and for general corporate purposes.

20182019 Term Loan—During thethree months ended March 31, 2018,2019, the Company entered into the 20182019 Term Loan, the net proceeds of which were used, together with cash on hand, to repay $1.1 billion ofall outstanding indebtedness under the 2013 Credit Facility and $445.0 million of outstanding indebtedness under the 2014 Credit Facility.its unsecured term loan entered into on March 29, 2018.
The 20182019 Term Loan matures on March 29, 2019.February 13, 2020. Any outstanding principal and accrued but unpaid interest will be due and payable in full at maturity. The 20182019 Term Loan may be paid prior to maturity in whole or in part at the Company’s option without penalty or premium.
The loan agreement for the 20182019 Term Loan agreement contains certain reporting, information, financial and operating covenants and other restrictions (including limitations on additional debt, guaranties, sales of assets and liens) with which the Company must comply. Any failure to comply with the financial and operating covenants of the loan agreement may constitute a default, which could result in, among other things, the amounts outstanding, including all accrued interest and unpaid fees, becoming immediately due and payable.

As of March 31, 2018,2019, the key terms under the 2013 Credit Facility, the 2014 Credit Facility, the Company’s unsecured term loan entered into in October 2013, as amended (the “2013 Term Loan”) and the 20182019 Term Loan were as follows:
Outstanding Principal Balance Undrawn letters of credit Maturity Date Current margin over LIBOR (1) Current commitment fee (2)Outstanding Principal Balance (in millions) Undrawn letters of credit (in millions) Maturity Date Current margin over LIBOR (1) Current commitment fee (2)
2013 Credit Facility$1,641.8
(3)$4.0
 June 28, 2021(4)1.125% 0.125%$2,340.0
 $3.8
 June 28, 2022(3)1.125% 0.125%
2014 Credit Facility$600.0
 $6.3
 January 31, 2023(4)1.250% 0.150%$—
 $6.2
 January 31, 2024(3)1.125% 0.125%
2013 Term Loan$1,000.0
 N/A
 January 31, 2023 1.250% N/A
$1,000.0
 N/A
 January 31, 2024 1.125% N/A
2018 Term Loan$1,500.0
 N/A
 March 29, 2019 0.875% N/A
2019 Term Loan$1,300.0
 N/A
 February 13, 2020 0.800% N/A
_______________
(1)    LIBOR means the London Interbank Offered Rate.
(2)    Fee on undrawn portion of each credit facility.
(3)    Includes $140.0 million borrowed at the base rate of 4.750% plus a margin of 0.125%.
(4)    Subject to two optional renewal periods.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


6.9.    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:
 
 March 31, 2018 December 31, 2017 March 31, 2019 December 31, 2018
 Fair Value Measurements Using Fair Value Measurements Using Fair Value Measurements Using Fair Value Measurements Using
 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Assets:                        
Short-term investments (1) $—
 $389.4
 —
 $1.0
 —
 —
 —
 $18.4
 —
 —
 —
 —
Embedded derivative in lease agreement —
 —
 $12.2
 —
 —
 $12.4
 —
 —
 $11.3
 —
 —
 $11.5
Liabilities:                        
Interest rate swap agreements —
 $45.4
 —
 —
 $29.0
 —
 —
 $21.8
 —
 —
 $33.8
 —
Acquisition-related contingent consideration —
 —
 $1.0
 —
 —
 $10.1
 —
 —
 $0.8
 —
 —
 $0.9
Fair value of debt related to interest rate swap agreements(2) $(43.0) —
 —
 $(24.5) —
 —
 $(19.0) —
 —
 $(31.3) —
 —
Redeemable noncontrolling interests —
 —
 $589.0
 —
 —
 $1,004.8
_______________
(1)Consists of highly liquid investments with original maturities in excess of three months and mutual funds with a portfolio duration of less thanapproximately 90 days.
(2)Included in the carrying values of the corresponding debt obligations.

As of March 31, 2018,2019, the Company had marketable securities with a cost basis of $386.7$18.1 million and recognized unrealized gains of $2.7$0.3 million on these securities.

During the three months ended March 31, 2018,2019, the Company made no changes to the methods described in note 11 to its consolidated financial statements included in the 20172018 Form 10-K that it used to measure the fair value of its interest rate swap agreements, the embedded derivative in one of its lease agreements, and acquisition-related contingent consideration.consideration and redeemable noncontrolling interests. The changes in fair value for the embedded derivative in one of its lease agreements and acquisition-related contingent consideration during the three months ended March 31, 20182019 and 20172018 were not material to the consolidated financial statements. The changes in the carrying amount of the redeemable noncontrolling interests are described in note 12. As of March 31, 2018,2019, the Company estimated the value of all potential acquisition-related contingent consideration payments to be between zero and $1.0$0.8 million.
 
Items Measured at Fair Value on a Nonrecurring Basis
Assets Held and Used—The Company’s long-lived assets are recorded at amortized cost and, if impaired, are adjusted to fair value using Level 3 inputs. During the three months ended March 31, 2019 and 2018, the Company recorded $18.1 million and $147.4 million of impairments, respectively. These impairments were recorded in Other operating expenses in the consolidated statements of operations. There were no other items measured at fair value on a nonrecurring basis during the three months ended March 31, 20182019 or 2017.2018.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


On February 28, 2018, one of the Company’s tenants in Asia, Aircel Ltd. (“Aircel”), filed for bankruptcy protection with the National Company Law Tribunal of India. The bankruptcy process is expected to take at least several months to complete and the ultimate outcome has yet to be determined. The Company performed an impairment test based on current expectations of the impact of the bankruptcy on projected cash flows for assets related to Aircel. These assets consisted primarily of towers, which are assessed on an individual basis, network location intangibles, which relate directly to towers, and tenant-related intangibles. As a result, an impairment of $40.1 million was taken on the tower and network intangible assets. The Company also fully impaired the tenant-related intangible asset for Aircel, which resulted in an impairment of $107.3 million during the three months ended March 31, 2018. These impairments were recorded in Other operating expenses in the consolidated statements of operations.

In October 2017, one of the Company’s tenants in Asia, Tata Teleservices Limited (“Tata Teleservices”), informed the Department of Telecommunications in India of its intent to exit the wireless telecommunications business and announced plans to transfer its business to another telecommunications provider. The Company considered the recent developments regarding these events, including ongoing negotiations with Tata Teleservices, when updating its impairment test for the Tata Teleservices tenant relationship, which did not result in an impairment since the estimated probability-weighted undiscounted cash flows were in excess of the carrying value of this asset. However, the Company will continue to monitor the status of these developments, as it is possible that the estimated future cash flows may differ from current estimates. Changes in estimated cash flows from Tata Teleservices could impact previously recorded tangible and intangible assets, including amounts originally recorded as tenant-related intangibles, which have a current net book value of $417.0 million as of March 31, 2018.
Fair Value of Financial Instruments—The Company’s financial instruments for which the carrying value reasonably approximates fair value at March 31, 20182019 and December 31, 20172018 include cash and cash equivalents, restricted cash, accounts receivable and accounts payable. The Company’s estimates of fair value of its long-term obligations, including the current portion, are based primarily upon reported market values. For long-term debt not actively traded, fair value is estimated using either indicative price quotes or a discounted cash flow analysis using rates for debt with similar terms and maturities. As of March 31, 20182019 and December 31, 2017,2018, the carrying value of long-term obligations, including the current portion, was $21.4$21.2 billion and $20.2$21.2 billion, respectively. As of March 31, 2019, the fair value of long-term obligations, including the current portion, was $21.5 billion, of which $14.0 billion was measured using Level 1 inputs and $7.5 billion was measured using Level 2 inputs. As of December 31, 2018, the fair value of long-term obligations, including the current portion, was $21.4$21.1 billion, of which $13.0$13.4 billion was measured using Level 1 inputs and $8.4 billion was measured using Level 2 inputs. As of December 31, 2017, the fair value of long-term obligations, including the current portion, was $20.6 billion, of which $13.3 billion was measured using Level 1 inputs and $7.3$7.7 billion was measured using Level 2 inputs.

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

The change in the incomeIncome tax (provision) benefit (provision) for the three months ended March 31, 20182019 was primarily attributable to the tax effect of an increase in impairment charges andforeign earnings subject to taxation in the current period, as well as the nonrecurrence of events during the three months ended March 31, 2018, including a one-time benefit for merger-related activity in the Company’s Asia property segment.segment and the tax effect of certain impairment charges.
As of March 31, 20182019 and December 31, 2017,2018, the total unrecognized tax benefits that would impact the ETR, if recognized, were approximately $102.8$94.6 million and $105.8$93.7 million, respectively. The amount of unrecognized tax benefits during the three months ended March 31, 20182019 includes additions of $2.1 million to the Company’s existing tax positions reductions of $2.6$1.5 million due to a settlement with authorities and reductionsforeign currency exchange rate fluctuations of $1.7 million related to
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


positions taken in prior years.$0.3 million. Unrecognized tax benefits are expected to change over the next 12 months if certain tax matters ultimately settle with the applicable taxing jurisdiction during this time frame, as described in note 12 to the Company’s consolidated financial statements included in the 20172018 Form 10-K. The impact of the amount of these changes to previously recorded uncertain tax positions could range from zero to $8.7$2.8 million.
The Company recorded the following penalties and income tax-related interest expense during the three months ended March 31, 20182019 and 2017:2018:
 Three Months Ended March 31,
 2018 2017
Penalties and income tax-related interest expense$1.0
 $1.3
 Three Months Ended March 31,
 2019 2018
Penalties and income tax-related interest expense$1.1
 $1.0
As of March 31, 20182019 and December 31, 2017,2018, the total amount of accrued income tax related interest and penalties included in the consolidated balance sheets was $28.9were $20.3 million and $29.0$19.1 million, respectively.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES
8.NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

11.    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 2007 Equity Incentive Plan, as amended (the “2007 Plan”), provides for the grant of non-qualified and incentive stock options, as well as restricted stock units, restricted stock and other stock-based awards. Exercise prices for non-qualified and incentive stock options are not less than the fair value of the underlying common stock on the date of grant. Equity awards typically vest ratably, generally over four years for time-based restricted stock units (“RSUs”) and stock options and three years for performance-based restricted stock units (“PSUs”). Stock options generally expire 10ten years from the date of grant. As of March 31, 2018,2019, the Company had the ability to grant stock-based awards with respect to an aggregate of 7.66.9 million shares of common stock under the 2007 Plan. In addition, the Company maintains an employee stock purchase plan (the “ESPP”) pursuant to which eligible employees may purchase shares of the Company’s common stock on the last day of each bi-annual offering period at a 15% discount from the lower of the closing market value on the first or last day of such offering period. The offering periods run from June 1 through November 30 and from December 1 through May 31 of each year.
During the three months ended March 31, 20182019 and 2017,2018, the Company recorded and capitalized the following stock-based compensation expense:
Three Months Ended March 31, Three Months Ended March 31,
2018 2017 2019 2018
Stock-based compensation expense$42.7
 $36.2
Stock-based compensation expense Property $0.6
 $0.7
Stock-based compensation expense Services 0.3
 0.3
Stock-based compensation expense SG&A 41.6
 41.7
Total stock-based compensation expense $42.5
 $42.7
    
Stock-based compensation expense capitalized as property and equipment$0.5
 $0.5
 $0.5
 $0.5
Stock Options—As of March 31, 2018,2019, total unrecognized compensation expense related to unvested stock options was $10.0$3.2 million, which is expected to be recognized over a weighted average period of approximately two years.one year.
The Company’s option activity for the three months ended March 31, 20182019 was as follows (shares disclosed in full amounts):
  Number of Options
Outstanding as of January 1, 20182019 5,557,5614,257,470
Granted —
Exercised (243,118314,847)
Forfeited —
Expired —
Outstanding as of March 31, 20182019 5,314,4433,942,623
 
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


Restricted Stock Units—As of March 31, 2018,2019, total unrecognized compensation expense related to unvested RSUs granted under the 2007 Plan was $166.1$179.6 million and is expected to be recognized over a weighted average period of approximately three years. Vesting of RSUs is subject generally to the employee’s continued employment or death, disability or qualified retirement (each as defined in the applicable RSU award agreement).
Performance-Based Restricted Stock Units—During the three months ended March 31, 2019, 2018 2017 and 2016,2017, the Company’s Compensation Committee granted an aggregate of 114,823 PSUs (the “2019 PSUs”), 131,311 PSUs (the “2018 PSUs”), and 154,520 PSUs (the “2017 PSUs”) and 169,340 PSUs (the “2016 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 20182019 PSUs, the 20172018 PSUs and the 20162017 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
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

target amounts. At the end of each three-year performance period, the number of shares that vest will depend on the degree of achievement against the pre-established performance goals. PSUs will be paid out in common stock at the end of each performance period, subject generally to the executive’s continued employment. In the event of an executive’semployment or death, disability or qualifyingqualified retirement PSUs will be paid out pro rata(each as defined in accordance with the terms of the applicable PSU award agreement.agreement). PSUs will accrue dividend equivalents prior to vesting, which will be paid out only in respect of shares that actually vest.
Restricted Stock Units and Performance-Based Restricted Stock Units—The Company’s RSU and PSU activity for the three months ended March 31, 20182019 was as follows (shares disclosed in full amounts): 
 RSUs PSUs
Outstanding as of January 1, 2018 (1)1,742,725
 444,031
Granted (2)671,618
 131,311
Vested (3)(644,022) (120,171)
Forfeited(12,063) —
Outstanding as of March 31, 20181,758,258
 455,171
 RSUs PSUs
Outstanding as of January 1, 2019 (1)1,649,973
 624,511
Granted (2)539,905
 114,823
Vested and Released (3)(607,845) (292,180)
Forfeited(13,599) —
Outstanding as of March 31, 20191,568,434
 447,154
Vested and deferred as of March 31, 2019 (4)32,596
 46,500
_______________
(1)PSUs consist of the target number of shares issuable at the end of the three-year performance period for the 2018 PSUs and 2017 PSUs, or 131,311 and the 2016 PSUs, or 154,520 and 169,340 shares, respectively, and the shares issuable at the end of the three-year vestingperformance period for the PSUs granted in 2015 (the “20152016 (“2016 PSUs”), based on achievement against the performance metrics for the the first, second and third year’sthree-year performance periods,period, or 120,171338,680 shares.
(2)PSUs consist of the target number of shares issuable at the end of the three-year performance period for the 20182019 PSUs, or 131,311114,823 shares.
(3)PSUs consist of shares vested pursuant to the 20152016 PSUs. There are no additional shares to be earned related to the 20152016 PSUs.
(4)Vested and deferred RSUs and PSUs are related to deferred compensation for certain former employees.

During the three months ended March 31, 2018,2019, the Company recorded $8.8$10.7 million in stock-based compensation expense for equity awards in which the performance goals hadhave been established and were probable of being achieved. The remaining unrecognized compensation expense related to these awards at March 31, 20182019 was $41.8$20.4 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.

9.12.    REDEEMABLE NONCONTROLLING INTERESTS

Redeemable Noncontrolling Interests—On April 21, 2016, the Company, through its wholly owned subsidiary, ATC Asia Pacific Pte. Ltd., acquired a 51% controlling ownership interest in ATC TIPL (formerly Viom), a telecommunications infrastructure company that owns and operates wireless communications towers and indoor DAS networks in India (the “Viom Acquisition”).

In connection with the Viom Acquisition, the Company, through one of its subsidiaries, entered into a shareholders agreement (the “Shareholders Agreement”) with Viom and the following remaining Viom shareholders: Tata Sons Limited (“Tata Sons”), Tata Teleservices Limited (“Tata Teleservices”), IDFC Private Equity Fund III (“IDFC”), Macquarie SBI Infrastructure Investments Pte Limited and SBI Macquarie Infrastructure Trust (collectively, the “Remaining Shareholders”). During the three months ended March 31, 2018, pursuant to the terms of the Shareholders Agreement, the Company received regulatory approval to merge its other wholly-owned India subsidiaries into ATC TIPL. As a result, the Company’s controlling interest in ATC TIPL increased from 51% to 63%, which resulted in an increase in the Company’s additional paid-in capital of $28.1 million. Similarly, the noncontrolling interest was reduced from 49% to 37%, and a corresponding adjustment to reduce the
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


redeemable noncontrolling interest value by $28.1 million was recorded during the three months ended March 31, 2018. In addition, the Company reclassified $78.8 million of previously recorded accumulated other comprehensive loss to additional paid-in capital due to the change in ownership of ATC TIPL.

The Shareholders Agreement also provides certain of the Remaining Shareholders with put options, which allow them to sell outstanding shares of ATC TIPL to the Company, and the Company with call options, which allow it to buy the noncontrolling shares of ATC TIPL. The put options, which are not under the Company’s control, cannot be separated from the noncontrolling interests. As a result, the combination of the noncontrolling interests and the redemption feature requires classification as redeemable noncontrolling interests in the consolidated balance sheet, separate from equity.

Given the provisions governing the put rights, the redeemable noncontrolling interests are recorded outside of permanent equity at their redemption value. The noncontrolling interests become redeemable after the passage of time, and therefore, the Company records the carrying amount of the noncontrolling interests at the greater of (i) the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss and foreign currency translation adjustments, andor (ii) the redemption value. If required, the Company will adjust the redeemable noncontrolling interests to redemption value on each balance sheet date with changes in redemption value recognized as an adjustment to Distributions in excess of earnings. Due to the impact of impairment charges on net income, the Company adjusted certain noncontrolling interests, which are subject to minimum redemption values, by $17.5 million for the three months ended March 31, 2018.

The put options may be exercised, requiring the Company to purchase the Remaining Shareholders’ equity interests, on specified dates beginning April 1, 2018 through March 31, 2021.

The changes in Redeemable noncontrolling interests for the three months ended March 31, 2018 and 2017 were as follows:
  Three Months Ended March 31,
  2018 2017
Balance as of January 1, $1,126.2
 $1,091.3
Net loss attributable to noncontrolling interests (28.1) (12.3)
Adjustment to noncontrolling interest redemption value 17.5
 —
Adjustment to noncontrolling interest due to merger (28.1) —
Foreign currency translation adjustment attributable to noncontrolling interests (22.3) 51.1
Balance as of March 31, $1,065.2
 $1,130.1

10.    EQUITY

Series B Preferred Stock—In March 2015, the Company issued 1,375,000 shares of its 5.50% Mandatory Convertible Preferred Stock, Series B, par value $0.01 per share (the “Series B Preferred Stock”). During the three months ended
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


to Net income attributable to noncontrolling interests. Due primarily to the impact of impairment charges on net income and, as a result, on the carrying value of the noncontrolling interests, the Company adjusted noncontrolling interests by $3.7 million and $17.5 million for the three months ended March 31, 2019 and 2018, all outstanding shares of the Series B Preferred Stock converted at a rate of 8.7420 per share of Series B Preferred Stock, or 0.8742 per depositary share, each representing a 1/10th interest in a share of Series B Preferred Stock, into an aggregate of 12,020,064 shares of the Company’s common stock pursuant to the provisions of the Certificate of Designations governing the Series B Preferred Stock. The Company paid cash in lieu of fractional shares of the Company’s common stock. These payments were recorded as a reduction to Additional paid-in capital.respectively.

On February 15, 2018,The put options may be exercised, requiring the Company paidto purchase the final dividend of $18.9 million to holdersRemaining Shareholders’ equity interests, on specified dates through March 31, 2021. The price of the Series B Preferred Stockput options will be based on the fair market value of the exercising Remaining Shareholders’ interest in the Company’s India operations at the closetime the option is exercised. Put options held by certain of business on February 1, 2018.the Remaining Shareholders are subject to a floor price of 216 INR per share.

During the three months ended March 31, 2019, the Company redeemed 50% of Tata Teleservices and Tata Sons’ combined holdings of ATC TIPL and 100% of IDFC’s holdings of ATC TIPL, for total consideration of INR 29.4 billion ($425.7 million at the date of redemption). As a result of the redemption, the Company’s controlling interest in ATC TIPL increased from 63% to 79% and the noncontrolling interest decreased from 37% to 21%.

The changes in Redeemable noncontrolling interests for the three months ended March 31, 2019 and 2018 were as follows:
  Three Months Ended March 31,
  2019 2018
Balance as of January 1, $1,004.8
 $1,126.2
Net loss attributable to noncontrolling interests (3.7) (28.1)
Adjustment to noncontrolling interest redemption value 3.7
 17.5
Adjustment to noncontrolling interest due to merger —
 (28.1)
Purchase of noncontrolling interest (425.7) —
Foreign currency translation adjustment attributable to noncontrolling interests 9.9
 (22.3)
Balance as of March 31, $589.0
 $1,065.2

13.    EQUITY

Sales of Equity Securities—The Company receives proceeds from the sale of its equity securities pursuant to the ESPP and upon exercise of stock options granted under its equity incentive plan. During the three months ended March 31, 2018,2019, the Company received an aggregate of $20.0$27.2 million in proceeds upon exercises of stock options.

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

During the three months ended March 31, 2018,2019, there were no repurchases under either program.of the Buyback Programs. As of March 31, 2018,2019, the Company hadhas repurchased a total of 12,356,05414,003,543 shares of its common stock under the 2011 Buyback for an aggregate of $1.2$1.4 billion, including commissions and fees. The Company has not made any repurchases under the 2017 Buyback.
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, in accordance with securities laws and other legal requirements and subject to market conditions and other factors.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

The Company expects to fund any further repurchasespurchases of its common stock through a combination of cash on hand, cash generated by operations and borrowings under its credit facilities. Purchases under the Buyback Programs are subject to the Company having available cash to fund repurchases.the purchases.

Distributions—During the three months ended March 31, 2019, the Company declared or paid the following cash distributions (per share data reflects actual amounts):
Declaration Date Payment Date Record Date Distribution per share Aggregate Payment Amount (1)
Common Stock        
March 7, 2019 April 26, 2019 April 11, 2019 $0.90
 $397.8
December 5, 2018 January 14, 2019 December 27, 2018 $0.84
 $370.5
(1)Does not include amounts accrued for distributions payable related to unvested restricted stock units.

During the three months ended March 31, 2018, the Company declared or paid the following cash distributions (per share data reflects actual amounts):
Declaration Date Payment Date Record Date Distribution per share Aggregate Payment Amount (1) Payment Date Record Date Distribution per share Aggregate Payment Amount (1)
Common Stock        
March 8, 2018 April 27, 2018 April 11, 2018 $0.75
 $331.2
December 6, 2017 January 16, 2018 December 28, 2017 $0.70
 $300.2
 January 16, 2018 December 28, 2017 $0.70
 $300.2
March 8, 2018 April 27, 2018 April 11, 2018 $0.75
 $331.2
        
Series B Preferred Stock        
January 22, 2018 February 15, 2018 February 1, 2018 $13.75
 $18.9
 February 15, 2018 February 1, 2018 $13.75
 $18.9
_______________
(1)Does not include amounts accrued for distributions payable related to unvested restricted stock units.
The Company accrues distributions on unvested restricted stock units, which are payable upon vesting. As of March 31, 2018,2019, the amount accrued for distributions payable related to unvested restricted stock units was $7.1$8.9 million. During the three months ended March 31, 2018,2019, the Company paid $4.1$6.6 million of distributions upon the vesting of restricted stock units. To maintain its qualification for taxation as a REIT, the Company expects to continue paying distributions, the amount, timing and frequency of which will be determined, and subject to adjustment, by the Company’s Board of Directors.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


11.14.    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 reflects actual amounts)data):
 
Three Months Ended March 31,Three Months Ended March 31,
2018 20172019 2018
Net income attributable to American Tower Corporation stockholders$285.2
 $316.1
$397.4
 $285.2
Dividends on preferred stock(9.4) (26.8)—
 (9.4)
Net income attributable to American Tower Corporation common stockholders275.8
 289.3
397.4
 275.8
Basic weighted average common shares outstanding435,124
 427,279
441,351
 435,124
Dilutive securities3,396
 2,920
3,270
 3,396
Diluted weighted average common shares outstanding438,520
 430,199
444,621
 438,520
Basic net income attributable to American Tower Corporation common stockholders per common share$0.63
 $0.68
$0.90
 $0.63
Diluted net income attributable to American Tower Corporation common stockholders per common share$0.63
 $0.67
$0.89
 $0.63

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

Three Months Ended March 31,Three Months Ended March 31,
2018 20172019 2018
Restricted stock units118
 159
105
 118
Stock options—
 30
—
 —
Preferred stock5,904
 17,547
—
 5,904

12.15.    COMMITMENTS AND CONTINGENCIES
Litigation—The Company periodically becomes involved in various claims, lawsuits and proceedings that are incidental to its business. In the opinion of Company management, after consultation with counsel, there are no matters currently pending that would, in the event of an adverse outcome, materially impact the Company’s consolidated financial position, results of operations or liquidity.
Verizon Transaction—In March 2015, the Company entered into an agreement with various operating entities of Verizon Communications Inc. (“Verizon”) that currently provides for the lease, sublease or management of approximately 11,250 wireless communications sites commencing March 27, 2015. The average term of the lease or sublease for all 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 2,3402,270 towers commencing between December 2000 and August 2004. Substantially all of the towers are part of the Trust Securitizations.securitization transactions completed in March 2013 and March 2018. The average term of the lease or sublease for all sites at the inception of the agreement was approximately 27 years, assuming renewals or
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


approximately 27 years, assuming renewals or extensions of the underlying ground leases for the sites. The Company has the option to purchase the sites subject to the applicable lease or sublease upon its expiration. Each tower is assigned to an annual tranche, ranging from 2013 to 2032, which represents the outside expiration date for the sublease rights to that tower. The purchase price for each site is a fixed amount stated in the lease for that site plus the fair market value of certain alterations made to the related tower by AT&T. As of March 31, 2018,2019, the Company has purchased an aggregate of 88153 of the subleased towers upon expiration of the applicable agreement. The aggregate purchase option price for the remaining towers leased and subleased is $851.1$911.4 million and will accrete at a rate of 10% per annum 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, 2020 at the then-current monthly fee, which shall escalate in accordance with the standard master lease agreement for the remainder of AT&T’s tenancy. Thereafter, AT&T shall have the right to renew such lease for up to four successive five-year terms.
ALLTEL Transaction—In December 2000, the Company entered into an agreement with ALLTEL Communications, LLC, a predecessor entity to Verizon Wireless, to acquire towers through a 15-year sublease agreement. Pursuant to the agreement, as amended, with Verizon Wireless, the Company acquired rights to approximately 1,800 towers in tranches between April 2001 and March 2002. The Company has the option to purchase each tower at the expiration of the applicable sublease. During the year ended December 31, 2016, the Company exercised the purchase options for 1,523 towers in a single closing and provided notice to the tower owner, Verizon’s assignee, of its intent to exercise the purchase options related to the 243 remaining towers. As of March 31, 2018,2019, the purchase price per tower was $42,844 payable in cash or, at the tower owner’s option, with 769 shares of the Company’s common stock per tower. The aggregate cash purchase option price for the remaining subleased towers was $10.4 million as of March 31, 2018.2019.
Other Contingencies—The Company is subject to income tax and other taxes in the geographic areas where it operates, and periodically receives notifications of audits, assessments or other actions by taxing authorities. In certain jurisdictions, taxingTaxing authorities may issue preliminary notices or assessments while audits are being conducted. In certain jurisdictions, taxing authorities may issue assessments with minimal examination. These preliminary notices orand 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. The Company evaluates the circumstances of each notification or assessment based on the information available and records a liability for any potential outcome that is probable or more likely than not unfavorable if the liability is also reasonably estimable.
On December 5, 2016, the Company received an income tax assessment of Essar Telecom Infrastructure Private Limited (“ETIPL”) from the India Income Tax Department (the “Tax Department”) for the fiscal year ending 2008 in the amount of 4.75 billion INR ($69.8 million on the date of assessment) related to capital contributions. The Company challenged the assessment before the Office of Commissioner of Income Tax - Appeals, which ruled in the Company’s favor in January 2018. However, the Tax Department may appealhas appealed this ruling at a higher appellate authority. The Company estimates that there is a more likely than not probability that the Company’s position will be sustained upon appeal. Accordingly, no liability has been recorded. Additionally, the assessment was made with respect to transactions that took place in the tax year commencing in 2007, prior to the Company’s acquisition of ETIPL. Under the Company’s definitive acquisition agreement of ETIPL, the seller is obligated to indemnify and defend the Company with respect to any tax-related liability that may arise from activities prior to March 31, 2010.
Tenant Leases—The Company’s lease agreements with its tenants vary depending upon the region and the industry of the tenant, and generally have initial terms of ten years with multiple renewal terms at the option of the tenant.
Future minimum rental receipts expected from tenants under non-cancellable operating lease agreements in effect at March 31, 2018 were as follows (in billions):
Remainder of 2018$4
20195
20205
20214
20223
Thereafter11
Total$32
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


Lease Obligations—The Company leases certain land, office and tower space under operating leases that expire over various terms. Many of the leases contain renewal options with specified increases in lease payments upon exercise of the renewal option. Escalation clauses present in operating leases, excluding those tied to a consumer price index or other inflation-based indices, are recognized on a straight-line basis over the non-cancellable term of the leases.
Future minimum rental payments under non-cancellable operating leases include payments for certain renewal periods at the Company’s option because failure to renew could result in a loss of the applicable communications sites and related revenues from tenant leases, thereby making it reasonably assured that the Company will renew the leases. Such payments at March 31, 2018 are as follows (in billions):
Remainder of 2018$1
20191
20201
20211
20221
Thereafter6
Total$11
13.16.    ACQUISITIONS

Impact of current year acquisitions—The Company typically acquires communications sites from wireless carriers or other tower operators and subsequently integrates those sites into its existing portfolio of communications sites. The financial results of the Company’s acquisitions have been included in the Company’s consolidated statements of operations for the three months ended March 31, 20182019 from the date of the respective acquisition. The date of acquisition, and by extension the point at which the Company begins to recognize the results of an acquisition, may depend on, among other things, the receipt of contractual consents, the commencement and extent of leasing arrangements and the timing of the transfer of title or rights to the assets, which may be accomplished in phases. Sites acquired from communications service providers may never have been operated as a business and may instead have been utilized solely by the seller as a component of its network infrastructure. An acquisition may or may not involve the transfer of business operations or employees.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

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

For those acquisitions accounted for as business combinations, the Company recognizes acquisition and merger related expenses in the period in which they are incurred and services are received; for transactions accounted for as asset acquisitions, these costs are capitalized as part of the purchase price. Acquisition and merger related costs may include finder’s fees, advisory, legal, accounting, valuation and other professional or consulting fees and general administrative costs directly related to completing the transaction. Integration costs include incremental and non-recurring costs necessary to convert data, retain employees and otherwise enable the Company to operate newacquired businesses or assets efficiently. The Company records acquisition and merger related expenses for business combinations, as well as integration costs for all acquisitions, in Other operating expenses in the consolidated statements of operations.

During the three months ended March 31, 20182019 and 2017,2018, the Company recorded acquisition and merger related expenses for business combinations and non-capitalized asset acquisition costs and integration costs as follows:

Three Months Ended March 31, Three Months Ended March 31,
2018 2017 2019 2018
Acquisition and merger related expenses$1.4
 $5.7
 $2.0
 $1.4
Integration costs$0.5
 $4.6
 $4.1
 $0.5

AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amountsThe Company also received $5.7 million related to a pre-acquisition contingency in millions, unless otherwise noted)

France during the three months ended March 31, 2019.

20182019 Transactions

The estimated aggregate impact of the acquisitions completed in 20182019 on the Company’s revenues and gross margin for the three months ended March 31, 20182019 was approximately $0.9$0.4 million and $0.6$0.3 million,, respectively. The revenues and gross margin amounts also reflect incremental revenues from the addition of new tenants to such sites subsequent to the transaction date.

Vodafone Acquisition—On March 31, 2018, the Company acquired 10,238 communications sites from Vodafone India Limited and Vodafone Mobile Services Limited (together, “Vodafone”) for an aggregate total purchase price of 38.2 billion INR ($586.9 million at the date of acquisition). This acquisition was accounted for as an asset acquisition.

Other Acquisitions—During the three months ended March 31, 2018,2019, the Company acquired a total of 338107 communications sites in the United States, Colombia, Mexico, Paraguay and Peru, as well as other communications infrastructure assets for an aggregate purchase price of $93.2$95.3 million. Of the aggregate purchase price, $1.6 million is reflected in Accounts payable in the consolidated balance sheet as of March 31, 2018. TheseTower acquisitions were accounted for as asset acquisitions.acquisitions and the communications infrastructure assets acquisition was accounted for as a business combination.

The following table summarizes the allocations of the purchase prices for the fiscal year 20182019 acquisitions based upon their estimated fair value at the date of acquisition:
  Asia  
  Vodafone (1) (2) Other (1) (3)
Current assets $16.6
 $1.3
Non-current assets 9.9
 1.1
Property and equipment 197.6
 30.1
Intangible assets (4):    
     Tenant-related intangible assets 326.1
 42.5
     Network location intangible assets 64.5
 23.5
Current liabilities (15.8) (0.7)
Other non-current liabilities (12.0) (4.6)
Net assets acquired 586.9
 93.2
Goodwill —
 —
Fair value of net assets acquired 586.9
 93.2
Debt assumed —
 —
Purchase price $586.9
 $93.2
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

  Allocation (1)
Current assets $0.5
Property and equipment 15.5
Intangible assets (2):  
     Tenant-related intangible assets 46.0
     Network location intangible assets 6.3
     Other intangible assets —
Other non-current assets 5.6
Current liabilities (0.7)
Deferred tax liability —
Other non-current liabilities (8.8)
Net assets acquired 64.4
Goodwill (3) 30.9
Fair value of net assets acquired 95.3
Debt assumed —
Purchase price $95.3
_______________
(1)Accounted for as asset acquisitions.
(2)Includes $1.3 million in acquisition and merger related expenses that were capitalized as part of the purchase price.
(3)Includes 3537 sites in Peru held pursuant to long-term capitalfinance leases.
(4)(2)Tenant-related intangible assets and network location intangible assets are amortized on a straight-line basis over periods of up to 20 years.
(3)The Company expects the majority of goodwill to be deductible for tax purposes.

2018 Transactions

AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

During the three months ended March 31, 2019, there were no material post-closing adjustments that impacted the 2018 acquisitions.

Pro Forma Consolidated Results (Unaudited)
The following table presents the unaudited pro forma financial results as if the 2019 acquisitions had occurred on January 1, 2018 and the 2018 acquisitions had occurred on January 1, 2017 and acquisitions completed in 2017 had occurred on January 1, 2016.2017. The pro forma results do not include any anticipated cost synergies, costs or other integration impacts. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the transactions been completed on the date indicated, nor are they indicative of the future operating results of the Company.

Three Months Ended March 31, Three Months Ended March 31,
2018 2017 2019 2018
Pro forma revenues$1,780.3
 $1,690.0
 $1,814.9
 $1,844.0
Pro forma net income attributable to American Tower Corporation common stockholders$275.8
 $284.9
 $397.9
 $273.3
Pro forma net income per common share amounts:       
Basic net income attributable to American Tower Corporation common stockholders$0.63
 $0.67
 $0.90
 $0.63
Diluted net income attributable to American Tower Corporation common stockholders$0.63
 $0.66
 $0.89
 $0.62

Other Signed Acquisitions

Idea Cellular Limited—On November 13, 2017, the Company entered into an agreement with Idea Cellular Limited (“Idea”) and Idea’s subsidiary, Idea Cellular Infrastructure Services Limited (“ICISL”), to acquire 100% of the outstanding shares of ICISL, a telecommunications company that owns and operates approximately 9,900 communications sites in India, for cash consideration of approximately 40 billion INR ($611.4 million at the date of signing), subject to certain adjustments (the “Idea Transaction”). Consummation of the Idea Transaction is subject to certain conditions, including regulatory approval. The Idea Transaction is expected to close in the second quarter of 2018.


14.17.    BUSINESS SEGMENTS

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
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)

a number of other industries. This business is referred to as the Company’s property operations, which as of March 31, 2018,2019, consisted of the following:
 
U.S.: property operations in the United States;
Asia: property operations in India;
Europe, Middle East and Africa (“EMEA”): property operations in France, Germany, Ghana, Kenya, Nigeria, South Africa and Uganda; and
Latin America: property operations in Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, Paraguay and Peru.
The Company has applied the aggregation criteria to operations within the EMEA and Latin America property operating segments on a basis that is consistent with management’s review of information and performance evaluations of these regions.
The Company’s services segment offers tower-related services in the United States, including site AZP and structural analysis, which primarily support its site leasing business, including the addition of new tenants and equipment on its 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 1.1 to the Company’s consolidated financial statements included in the 2018 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
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


segment operating profit. The Company defines segment gross margin as segment revenue less segment operating expenses excluding stock-based compensation expense recorded in costs of operations; 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. For reporting purposes, for periods through September 30, 2018, the Latin America property segment gross margin and segment operating profit also include Interest income (expense), TV Azteca, net. These measures of segment gross margin and segment operating profit are also before Interest income, Interest expense, Gain (loss) on retirement of long-term obligations, Other income (expense), Net income (loss) attributable to noncontrolling interests and Income tax benefit (provision). The categories of expenses indicated above, such as depreciation, have been excluded from segment operating performance as they are not considered in the review of information or the evaluation of results by management. There are no significant revenues resulting from transactions between the Company’s operating segments. All intercompany transactions are eliminated to reconcile segment results and assets to the consolidated statements of operations and consolidated balance sheets.

Summarized financial information concerning the Company’s reportable segments for the three months ended March 31, 20182019 and 20172018 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.
AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)
  Property
Total 
Property
 

Services
 Other Total
Three Months Ended March 31, 2018 U.S. Asia EMEA Latin America 
Total segment revenues $931.4
 $273.0
 $174.2
 $331.8
 $1,710.4
 $31.4
   $1,741.8
Segment operating expenses (1) 186.3
 157.9
 59.1
 103.4
 506.7
 12.2
   518.9
Interest income, TV Azteca, net —
 —
 —
 2.7
 2.7
 —
   2.7
Segment gross margin 745.1
 115.1
 115.1
 231.1
 1,206.4
 19.2
   1,225.6
Segment selling, general, administrative and development expense (1) 35.4
 44.2
 16.8
 24.6
 121.0
 3.5
   124.5
Segment operating profit $709.7
 $70.9
 $98.3
 $206.5
 $1,085.4
 $15.7
   $1,101.1
Stock-based compensation expense             $42.7
 42.7
Other selling, general, administrative and development expense             38.7
 38.7
Depreciation, amortization and accretion             446.3
 446.3
Other expense (2)             324.2
 324.2
Income from continuing operations before income taxes               $249.2
Total assets $18,894.7
 $5,796.8
 $3,343.4
 $6,084.1
 $34,119.0
 $47.0
 $206.7
 $34,372.7

  Property
Total 
Property
 

Services
 Other Total
Three Months Ended March 31, 2019 U.S. Asia EMEA Latin America 
Segment revenues $986.3
 $288.9
 $177.5
 $333.3
 $1,786.0
 $27.4
   $1,813.4
Segment operating expenses (1) 191.3
 178.0
 59.7
 103.4
 532.4
 10.1
   542.5
Segment gross margin 795.0
 110.9
 117.8
 229.9
 1,253.6
 17.3
   1,270.9
Segment selling, general, administrative and development expense (1) 41.7
 26.6
 18.4
 27.7
 114.4
 3.4
   117.8
Segment operating profit 753.3
 84.3
 99.4
 202.2
 1,139.2
 13.9
   1,153.1
Stock-based compensation expense             $42.5
 42.5
Other selling, general, administrative and development expense             38.7
 38.7
Depreciation, amortization and accretion             436.9
 436.9
Other expense (2)             193.4
 193.4
Income from continuing operations before income taxes               $441.6
Total assets $22,160.9
 $5,427.6
 $3,637.5
 $7,306.4
 $38,532.4
 $43.8
 $350.6
 $38,926.8
_______________
(1)Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $0.9 million and $41.6 million, respectively.
(2)Primarily includes interest expense.
  Property
Total 
Property
 

Services
 Other Total
Three Months Ended March 31, 2018 U.S. Asia EMEA Latin America 
Segment revenues $931.4
 $273.0
 $174.2
 $331.8
 $1,710.4
 $31.4
   $1,741.8
Segment operating expenses (1) 186.3
 157.9
 59.1
 103.4
 506.7
 12.2
   518.9
Interest income, TV Azteca, net —
 —
 —
 2.7
 2.7
 —
   2.7
Segment gross margin 745.1
 115.1
 115.1
 231.1
 1,206.4
 19.2
   1,225.6
Segment selling, general, administrative and development expense (1) 35.4
 44.2
 16.8
 24.6
 121.0
 3.5
   124.5
Segment operating profit $709.7
 $70.9
 $98.3
 $206.5
 $1,085.4
 $15.7
   1,101.1
Stock-based compensation expense             $42.7
 42.7
Other selling, general, administrative and development expense             38.7
 38.7
Depreciation, amortization and accretion             446.3
 446.3
Other expense (2)             324.2
 $324.2
Income from continuing operations before income taxes               $249.2
Total assets $18,894.7
 $5,796.8
 $3,343.4
 $6,084.1
 $34,119.0
 $47.0
 $206.7
 $34,372.7
_______________
(1)Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $1.0 million and $41.7 million, respectively.
(2)Primarily includes interest expense and $147.4 million in impairment charges.

AMERICAN TOWER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in millions, unless otherwise noted)


  Property 
Total 
Property
 

Services
 Other Total
Three Months Ended March 31, 2017 U.S. Asia EMEA Latin America 
Segment revenues $891.9
 $275.5
 $150.4
 $276.3
 $1,594.1
 $22.1
   $1,616.2
Segment operating expenses (1) 181.4
 149.4
 61.5
 93.2
 485.5
 6.3
   491.8
Interest income, TV Azteca, net —
 —
 —
 2.7
 2.7
 —
   2.7
Segment gross margin 710.5
 126.1
 88.9
 185.8
 1,111.3
 15.8
 
 1,127.1
Segment selling, general, administrative and development expense (1) 34.6
 20.5
 16.5
 18.6
 90.2
 3.1
 
 93.3
Segment operating profit $675.9
 $105.6
 $72.4
 $167.2
 $1,021.1
 $12.7
   $1,033.8
Stock-based compensation expense             $36.2
 36.2
Other selling, general, administrative and development expense             36.2
 36.2
Depreciation, amortization and accretion             421.1
 421.1
Other expense (2)             206.1
 206.1
Income from continuing operations before income taxes               $334.2
Total assets $18,768.4
 $4,765.9
 $3,054.5
 $5,189.3
 $31,778.1
 $49.2
 $230.1
 $32,057.4
_______________
(1)Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $0.9 million and $35.3 million, respectively.
(2)Primarily includes interest expense.
15.18.    SUBSEQUENT EVENTS

KenyaRedemption of 5.050% Senior Notes—On April 3, 2018,22, 2019, the Company through its recently formed Kenyan subsidiary, entered intoredeemed all of the 5.050% Notes at a definitive agreement with Telkom Kenya Limitedprice equal to acquire103.0050% of the principal amount, plus accrued and unpaid interest up to, 723 communications sitesbut excluding, April 22, 2019, for an aggregate redemption price of $726.0 million, including $5.0 million in Kenya.accrued and unpaid interest. The transaction is expectedCompany expects to close duringrecord a loss on retirement of long-term obligations of approximately $22.1 million, which includes prepayment consideration of $21.0 million and the second halfassociated unamortized discount and deferred financing costs. The redemption was funded with borrowings under the 2014 Credit Facility and cash on hand. Upon completion of 2018,this redemption, none of the 5.050% Notes remained outstanding.

Put Options—In April 2019, Tata Teleservices and Tata Sons delivered notice of exercise of their put options with respect to 100% of their remaining holdings in the Company’s Indian subsidiary, ATC TIPL. The Company expects to complete the redemption of the put shares, subject to customary closing conditions, includingregulatory approval, for total consideration of INR 24.8 billion (approximately $358.7 million) in 2019. After the satisfactioncompletion of regulatory approvals.the redemption, the Company will hold an approximately 92% ownership interest in ATC TIPL.

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Quarterly Report on Form 10-Q contains forward-looking statements relating to our goals, beliefs, plans or current expectations and other statements that are not of historical facts. For example, when we use words such as “project,” “believe,” “anticipate,” “expect,” “forecast,” “estimate,” “intend,” “should,” “would,” “could,” “may” or other words that convey uncertainty of future events or outcomes, we are making forward-looking statements. Certain important factors may cause actual results to differ materially from those indicated by our forward-looking statements, including those set forth under the caption “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 20172018 (the “2017“2018 Form 10-K”). Forward-looking statements represent management’s current expectations and are inherently uncertain. We do not undertake any obligation to update forward-looking statements made by us.

The discussion and analysis of our financial condition and results of operations that follow are based upon our consolidated and condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of our financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities at the date of our financial statements. Actual results may differ from these estimates and such differences could be material to the financial statements. This discussion should be read in conjunction with our consolidated and condensed consolidated financial statements herein and the accompanying notes thereto, information set forth under the caption “Critical Accounting Policies and Estimates” in the 20172018 Form 10-K, and in particular, the information set forth therein under Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
Overview

We are one of the largest global real estate investment trusts and a leading independent owner, operator and developer of multitenant communications real estate. Our primary business is the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a number of other industries. In addition to the communications sites in our portfolio, we manage rooftop and tower sites for property owners under various contractual arrangements. We also hold other telecommunications infrastructure, fiber and property interests that we lease primarily to communications service providers and third-party tower operators. We refer to this business as our property operations, which accounted for 98% of our total revenues for the three months ended March 31, 20182019 and includes our U.S. property segment, Asia property segment, Europe, Middle East and Africa (“EMEA”) property segment and Latin America property segment.

We also offer tower-related services in the United States, including site acquisition, zoning and permitting and structural analysis, which primarily support our site leasing business, including the addition of new tenants and equipment on our sites.
    


The following table details the number of communications sites, excluding managed sites, that we owned or operated as of March 31, 2018:2019: 
 
Number of
Owned Towers
 
Number of
Operated 
Towers (1)
 Number of
Owned DAS Sites		 
Number of
Owned Towers
 
Number of
Operated 
Towers (1)
 Number of
Owned DAS Sites
U.S. 24,295
 15,987
 379
 24,445
 15,895
 400
Asia:            
India 67,071
 —
 342
 74,388
 —
 1,067
EMEA:            
France 2,170
 307
 9
 2,186
 309
 9
Germany 2,208
 —
 —
 2,207
 —
 —
Ghana 2,181
 —
 23
 2,322
 —
 25
Kenya 715
 —
 —
Nigeria 4,757
 —
 —
 4,772
 —
 —
South Africa (2) 2,533
 —
 —
 2,659
 —
 —
Uganda 1,462
 —
 —
 1,556
 —
 —
EMEA total 15,311
 307
 32
 16,417
 309
 34
Latin America:            
Argentina (3) 9
 —
 1
 48
 —
 8
Brazil 16,531
 2,257
 84
Brazil (3) 16,628
 2,260
 94
Chile 1,295
 —
 11
 1,299
 —
 21
Colombia 3,819
 777
 1
 4,973
 —
 2
Costa Rica 492
 —
 2
 564
 —
 2
Mexico (4) 8,932
 199
 78
 9,055
 186
 85
Paraguay 957
 —
 —
 1,309
 —
 —
Peru 676
 162
 —
 692
 309
 —
Latin America total 32,711
 3,395
 177
 34,568
 2,755
 212
_______________
(1)Approximately 98% of the operated towers are held pursuant to long-term capitalfinance leases, including those subject to purchase options.
(2)In South Africa, we also own fiber.
(3)In Argentina and Brazil, we also own or operate urban telecommunications assets, fiber and the rights to utilize certain existing utility infrastructure for future telecommunications equipment installation.
(4)In Mexico, we also own or operate urban telecommunications assets, including fiber, concrete poles and other infrastructure.

We operate in five reportable segments: U.S. property, Asia property, EMEA property, Latin America property and services. In evaluating operating performance in each business segment, management uses, among other factors, segment gross margin and segment operating profit (see note 1417 to our consolidated and condensed consolidated financial statements included in this Quarterly Report on Form 10-Q).
In the section that follows, we provideThe 2018 Form 10-K contains information regarding management’s expectations of long-term drivers of demand for our communications sites, as well as our current results of operations, financial position and sources and uses of liquidity. In addition, we highlight key trends, which management believes provide valuable insight into our operating and financial resource allocation decisions.

Revenue Growth. The primary factors affectingdiscussion below should be read in conjunction with the revenue growth2018 Form 10-K and, in our property segments are:

•Growth in tenant billings, including:
New revenue attributable to leases in place on day one on sites acquired or constructed sinceparticular, the beginninginformation set forth therein under Item 7 “Management’s Discussion and Analysis of the prior-year period;
New revenue attributable to leasing additional space on our sites (“colocations”)Financial Condition and lease amendments; and
Contractual rent escalations on existing tenant leases, netResults of churn (as defined below).


Revenue growth from other items, including additional tenant payments to cover costs, such as ground rent or power and fuel costs, included in certain tenant leases (“pass-through”), straight-line revenue and decommissioning.

Due to our diversified communications site portfolio, our tenant lease rates vary considerably depending upon numerous factors, including, but not limited to, amount, type and position of tenant equipment on the tower, remaining tower capacity and tower location. We measure the remaining tower capacity by assessing several factors, including tower height, tower type, environmental conditions, existing equipment on the tower and zoning and permitting regulations in effect in the jurisdiction where the tower is located. In many instances, tower capacity can be increased with relatively modest tower augmentation capital expenditures.Operations—Executive Overview.”

In most of our markets, our tenant leases with wireless carriers generally have an initial non-cancellable termterms of at leastfive to ten years with multiple renewal terms. Accordingly, the vast majority of the revenue generated by our property operations during the three months ended March 31, 20182019 was recurring revenue that we should continue to receive in future periods. Based upon foreign currency exchange rates and the tenant leases in place as of March 31, 2018,2019, we expect to generate over $32nearly $34.5 billion of non-cancellable tenant lease revenue over future periods, before the impact of straight-line lease accounting. Most of our tenant leases have provisions that periodically increase the rent due under the lease, typically based on an annual fixed escalation (averaging approximately 3% in the United States) or an inflationary


index in our international markets, or a combination of both. In addition, certain of our tenant leases provide for additional revenue primarily to cover costs (pass-through revenue), such as ground rent or power and fuel costs.

The revenues generated by our property operations may be affected by cancellations of existing tenant leases. As discussed above, most of our tenant leases with wireless carriers and broadcasters are multiyear contracts, which typically are non-cancellable; however, in some instances, a lease may be cancelled upon the payment of a termination fee.

Revenue lost from either tenant lease cancellations or the non-renewal of leases or rent renegotiations, which we refer to as churn, has historically has not had a material adverse effect on the revenues generated by our consolidated property operations. This was again the case duringDuring the three months ended March 31, 2018, in which loss of tenant billings from tenant lease cancellations, non-renewal or renegotiations represented2019, churn was approximately 3%6% of our tenant billings. The increase was largely due to carrier consolidation events in India.

We do anticipatehave experienced an increase in revenue lost from cancellations or non-renewals in 2018 primarily due to carrier consolidation-driven churn in India, which is likelywe expect will continue to result in a higher impact on our revenues, including tenant billings, as compared to the historical average, particularly in our Asia property segment.through 2019. We also expect this churn will continue to compress our gross margin and operating profit for the duration of the carrier consolidation process,in 2019, particularly in our Asia property segment, although we expect this to be partially offset by lower expenses due to reduced tenancy on existing sites or the decommissioning of sites. In addition, we expect to periodically evaluate the carrying value of our Indian assets, which may result in the realization of impairment expense or other similar charges. For more information, please see Item 7 of the 20172018 Form 10-K under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates.”

For the three months ended March 31, 2018,2019, aggregate carrier consolidation-driven churnconsolidation in India negatively impacted our consolidated property revenue by $19.8$89.2 million, including approximately $4.3$21.0 million in pass-through revenue, and negatively impacted our gross margin and operating profit by $14.4$61.5 million. We also recorded an impairment charge of approximately $147.4 million

In 2019, as a result of Aircel Ltd.’s (“Aircel”) filing for bankruptcy protection in February 2018. For the full year ending December 31,compared to 2018 amounts, we expect carrier consolidation-driven churnconsolidation in India to negatively impact our consolidated property revenue by approximately $190.0$191.0 million, including $70.0approximately $22.0 million in pass-through revenue, and our operating profit by approximately $115.0$148.0 million. These amounts exclude the impact of the nonrecurrence of one-time items related to the cash payment pursuant to our settlement agreements with Tata in the fourth quarter of 2018.

Demand Drivers. We continue to believe that our site leasing revenue is likely to increase due to the growing use of wireless services globally and our ability to meet the corresponding incremental demand for our communications real estate. By adding new tenants and new equipment for existing tenants on our sites, we are able to increase these sites’ utilization and profitability. We believe the majority of our site leasing activity will continue to come from wireless service providers, with tenants in a number of other industries contributing incremental leasing demand. Our site portfolio and our established tenant base provide us with new business opportunities, which have historically resulted in


consistent and predictable organic revenue growth as wireless carriers seek to increase the coverage and capacity of their existing networks, while also deploying next generation wireless technologies. In addition, we intend to continue to supplement our organic growth by selectively developing or acquiring new sites in our existing and new markets where we can achieve our risk-adjusted return on investment objectives.

Consistent with our strategy to increase the utilization and return on investment from our sites, our objective is to add new tenants and new equipment for existing tenants through colocation and lease amendments. Our ability to lease additional space on our sites is primarily a function of the rate at which wireless carriers and other tenants deploy capital to improve and expand their wireless networks. This rate, in turn, is influenced by the growth of wireless services, the penetration of advanced wireless devices, the level of emphasis on network quality and capacity in carrier competition, the financial performance of our tenants and their access to capital and general economic conditions.

Based on industry research and projections, we expect that a number of key industry trends will result in incremental revenue opportunities for us:

In less advanced wireless markets where initial voice and data networks are still being deployed, we expect these deployments to drive demand for our tower space as carriers seek to expand their footprints and increase the scope and density of their networks. We have established operations in many of these markets at the early stages of wireless development, which we believe will enable us to meaningfully participate in these deployments over the long term.
Subscribers’ use of mobile data continues to grow rapidly given increasing smartphone and other advanced device penetration, the proliferation of bandwidth-intensive applications on these devices and the continuing evolution of the mobile ecosystem. We believe carriers will be compelled to deploy additional equipment on existing networks while also rolling out more advanced wireless networks to address coverage and capacity needs resulting from this increasing mobile data usage.
The deployment of advanced mobile technology across existing wireless networks will provide higher speed data services and further enable fixed broadband substitution. As a result, we expect that our tenants will continue deploying additional equipment across their existing networks.
Wireless service providers compete based on the quality of their existing networks, which is driven by capacity and coverage. To maintain or improve their network performance as overall network usage increases, our tenants continue deploying additional equipment across their existing sites while also adding new cell sites. We anticipate increasing network densification over the next several years, as existing network infrastructure is anticipated to be insufficient to account for rapidly increasing levels of wireless data usage.
Wireless service providers continue to acquire additional spectrum, and as a result are expected to add additional sites and equipment to their networks as they seek to optimize their network configuration and utilize additional spectrum.
Next generation technologies centered on wireless connections have the potential to provide incremental revenue opportunities for us. These technologies may include autonomous vehicle networks and a number of other internet-of-things, or IoT, applications, as well as other potential use cases for wireless services.

As part of our international expansion initiatives, we have targeted markets in various stages of network development to diversify our international exposure and position us to benefit from a number of different wireless technology deployments over the long term. In addition, we have focused on building relationships with large multinational carriers such as Bharti Airtel Limited, Telefónica S.A. and Vodafone Group PLC, among others. We believe that consistent carrier network investments across our international markets position us to generate meaningful organic revenue growth going forward.

In emerging markets, such as Ghana, India, Nigeria and Uganda, wireless networks tend to be significantly less advanced than those in the United States, and initial voice networks continue to be deployed in underdeveloped areas. A majority of consumers in these markets still utilize basic wireless services, predominantly on feature phones, while advanced device penetration remains low. In more developed urban locations within these markets, data network


deployments are underway. Carriers are focused on completing voice network build-outs while also investing in initial data networks as mobile data usage and smartphone penetration within their customer bases begin to accelerate.

In India, the ongoing transition from second generation (2G) technology to fourth generation (4G) technology has included and is expected to continue to include a period of carrier consolidation over the next several years, whereby the number of carriers operating in the marketplace will be reduced through mergers, acquisitions and select carrier exits from the marketplace. Over the long term, this consolidation process is expected to result in a more favorable structural environment for both the wireless carriers as well as communications infrastructure providers. In the shorter term, as discussed above, we expect the consolidation process to continue to result in elevated levels of churn within our India business as merging carriers rationalize redundant legacy equipment installations and as select carriers exit the marketplace.

In markets with rapidly evolving network technology, such as South Africa and most of the countries in Latin America where we do business, initial voice networks, for the most part, have already been built out, and carriers are focused on third generation (3G) and 4G network build outs. Consumers in these regions are increasingly adopting smartphones and other advanced devices and, as a result, the usage of bandwidth-intensive mobile applications is growing materially. Recent spectrum auctions in these rapidly evolving markets have allowed incumbent carriers to accelerate their data network deployments and have also enabled new entrants to begin initial investments in data networks. Smartphone penetration and wireless data usage in these markets are advancing rapidly, which typically requires that carriers continue to invest in their networks to maintain and augment their quality of service.

Finally, in markets with more mature network technology, such as Germany and France, carriers are focused on deploying 4G data networks to account for rapidly increasing wireless data usage among their customer base. With higher smartphone and advanced device penetration and significantly higher per capita data usage, carrier investment in networks is focused on 4G coverage and capacity.

We believe that the network technology migration we have seen in the United States, which has led to significantly denser networks and meaningful new business commencements for us over a number of years, will ultimately be replicated in our less advanced international markets. As a result, we expect to be able to leverage our extensive international portfolio of approximately 119,345 communications sites and the relationships we have built with our carrier tenants to drive sustainable, long-term growth.

We have master lease agreements with certain of our tenants that provide for consistent, long-term revenue and reduce the likelihood of churn. Certain of those master lease agreements are holistic in nature and further build and augment strong strategic partnerships with our tenants and have significantly reduced colocation cycle times, thereby providing our tenants with the ability to rapidly and efficiently deploy equipment on our sites.

Property Operations Expenses. Direct operating expenses incurred by our property segments include direct site level expenses and consist primarily of ground rent and power and fuel costs, some or all of which may be passed through to our tenants, as well as property taxes, repairs and maintenance. These segment direct operating expenses exclude all segment and corporate selling, general, administrative and development expenses, which are aggregated into one line item entitled Selling, general, administrative and development expense in our consolidated statements of operations. In general, our property segments’ selling, general, administrative and development expenses do not significantly increase as a result of adding incremental tenants to our sites and typically increase only modestly year-over-year. As a result, leasing additional space to new tenants on our sites provides significant incremental cash flow. We may, however, incur additional segment selling, general, administrative and development expenses as we increase our presence in our existing markets or expand into new markets. Our profit margin growth is therefore positively impacted by the addition of new tenants to our sites but can be temporarily diluted by our development activities.

Services Segment Revenue Growth. As we continue to focus on growing our property operations, we anticipate that our services revenue will continue to represent a small percentage of our total revenues.



Non-GAAP Financial Measures

Included in our analysis of our results of operations are discussions regarding earnings before interest, taxes, depreciation, amortization and accretion, as adjusted (“Adjusted EBITDA”), Funds From Operations, as defined by the National Association of Real Estate Investment Trusts (“Nareit FFO”) attributable to American Tower Corporation common stockholders, Consolidated Adjusted Funds From Operations (“Consolidated AFFO”) and AFFO attributable to American Tower Corporation common stockholders.

We define Adjusted EBITDA as Net income before Income (loss) from equity method investments; Income tax benefit (provision); Other income (expense); Gain (loss) on retirement of long-term obligations; Interest expense; Interest income; Other operating income (expense); Depreciation, amortization and accretion; and stock-based compensation expense.

Nareit FFO attributable to American Tower Corporation common stockholders is defined as net income before gains or losses from the sale or disposal of real estate, real estate related impairment charges, real estate related depreciation, amortization and accretion and dividends on preferred stock, and including adjustments for (i) unconsolidated affiliates and (ii) noncontrolling interests. In this section, we refer to Nareit FFO attributable to American Tower Corporation common stockholders as “Nareit FFO (common stockholders).”

We define Consolidated AFFO as Nareit FFO (common stockholders) before (i) straight-line revenue and expense; (ii) stock-based compensation expense; (iii) the deferred portion of income tax; (iv) non-real estate related depreciation, amortization and accretion; (v) amortization of deferred financing costs, capitalized interest, debt discounts and


premiums and long-term deferred interest charges; (vi) other income (expense); (vii) gain (loss) on retirement of long-term obligations; (viii) other operating income (expense); and adjustments for (ix) unconsolidated affiliates and (x) noncontrolling interests, less cash payments related to capital improvements and cash payments related to corporate capital expenditures.

We define AFFO attributable to American Tower Corporation common stockholders as Consolidated AFFO, excluding the impact of noncontrolling interests on both Nareit FFO (common stockholders) and the other adjustments included in the calculation of Consolidated AFFO. In this section, we refer to AFFO attributable to American Tower Corporation common stockholders as “AFFO (common stockholders).”

Adjusted EBITDA, Nareit FFO (common stockholders), Consolidated AFFO and AFFO (common stockholders) are not intended to replace net income or any other performance measures determined in accordance with GAAP. None of Adjusted EBITDA, Nareit FFO (common stockholders), Consolidated AFFO or AFFO (common stockholders) represents cash flows from operating activities in accordance with GAAP and, therefore, these measures should not be considered indicative of cash flows from operating activities, as a measure of liquidity or a measure of funds available to fund our cash needs, including our ability to make cash distributions. Rather, Adjusted EBITDA, Nareit FFO (common stockholders), Consolidated AFFO and AFFO (common stockholders) are presented as we believe each is a useful indicator of our current operating performance. We believe that these metrics are useful to an investor in evaluating our operating performance because (1) each is a key measure used by our management team for decision making purposes and for evaluating our operating segments’ performance; (2) Adjusted EBITDA is a component underlying our credit ratings; (3) Adjusted EBITDA is widely used in the telecommunications real estate sector to measure operating performance as depreciation, amortization and accretion may vary significantly among companies depending upon accounting methods and useful lives, particularly where acquisitions and non-operating factors are involved; (4) Consolidated AFFO is widely used in the telecommunications real estate sector to adjust Nareit FFO (common stockholders) for items that may otherwise cause material fluctuations in Nareit FFO (common stockholders) growth from period to period that would not be representative of the underlying performance of property assets in those periods; (5) each provides investors with a meaningful measure for evaluating our period-to-period operating performance by eliminating items that are not operational in nature; and (6) each provides investors with a measure for comparing our results of operations to those of other companies, particularly those in our industry.
 
Our measurement of Adjusted EBITDA, Nareit FFO (common stockholders), Consolidated AFFO and AFFO (common stockholders) may not, however, be fully comparable to similarly titled measures used by other companies.


Reconciliations of Adjusted EBITDA, Nareit FFO (common stockholders), Consolidated AFFO and AFFO (common stockholders) to net income, the most directly comparable GAAP measure, have been included below.



Results of Operations
Three Months Ended March 31, 20182019 and 20172018
(in millions, except percentages)

We are now disclosing our results in millions rather than thousands and, as a result, certain rounding adjustments have been made to prior-period amounts.

Revenue
Three Months Ended March 31,Percent Increase (Decrease) Three Months Ended March 31, Percent Increase (Decrease)
2018 2017  2019 2018 
Property           
U.S.$931.4
 $891.9
 4 % $986.3
 $931.4
 6 %
Asia273.0
 275.5
 (1) 288.9
 273.0
 6
EMEA174.2
 150.4
 16
 177.5
 174.2
 2
Latin America331.8
 276.3
 20
 333.3
 331.8
 0
Total property1,710.4
 1,594.1
 7
 1,786.0
 1,710.4
 4
Services31.4
 22.1
 42
 27.4
 31.4
 (13)
Total revenues$1,741.8
 $1,616.2
 8 % $1,813.4
 $1,741.8
 4 %

U.S. property segment revenue growth of $39.5$54.9 million was attributable to:
Tenant billings growth of $58.9$74.3 million, which was driven by:
$37.656.9 million due to colocationsleasing additional space on our sites (“colocations”) and amendments;
$15.316.4 million from contractual escalations, net of churn; and
$7.31.9 million generated from sites acquired or constructed since the beginning of the prior-year period (“newly acquired or constructed sites;sites”);
Partially offset by a decrease of $1.3$0.9 million from other tenant billings; and
A decrease of $19.4 million in other revenue, growth, primarilywhich includes a $20.4 million decrease due to a $25.3 million impact of straight-line accounting, partially offset by a $5.9 million increase in other revenue.accounting.

Asia property segment revenue decreasegrowth of $2.5$15.9 million was attributable to:
TenantPass-through revenue growth of $29.0 million;
An increase of $16.8 million in other revenue, primarily due to a decrease in revenue reserves; and
A decrease in tenant billings decrease of $6.3$1.4 million, which was driven by:
A decrease of $19.6$65.8 million resulting from churn in excess of contractual escalations, including $14.3$67.3 million due to carrier consolidation-driven churn;churn in India;
Partially offset by:
▪Growth of $11.6$47.0 million generated from newly acquired or constructed sites, including $44.3 million from the transactions with Vodafone India Limited and Vodafone Mobile Services Limited (the “Vodafone Acquisition”) and Idea Cellular Limited (the “Idea Acquisition”);
▪$16.6 million due to colocations and amendments; and
▪Growth of $1.7$0.8 million generated from newly acquired or constructed sites;other tenant billings.
A decrease of $3.7 million in other revenue primarily due to an increase of $3.0 million in revenue reserves; and
A decrease in pass-through revenue of $4.6 million.

Segment revenue growth includes a decrease was partially offset by an increase of $12.1$28.5 million attributable to the negative impact of foreign currency translation related to fluctuations in Indian Rupees.Rupee (“INR”).

EMEA property segment revenue growth of $23.8$3.3 million was attributable to:
Tenant billings growth of $14.0$15.3 million, which was driven by:
$5.66.8 million generated from newly acquired or constructed sites, primarily due to the acquisition of FPS Towerscommunications sites in France through our European joint ventureKenya (the “FPS“Kenya Acquisition”); in the fourth quarter of 2018; 
$4.34.7 million due to colocations and amendments;
$2.8 million from contractual escalations, net of churn;
$3.8 million due to colocations and amendments; and
$0.31.0 million from other tenant billings;


$6.5 millionPass-through revenue growth of other revenue growth;
An increase in pass-through revenue of $0.7$2.1 million; and
A decrease of $1.3$0.8 million in other revenue.

Segment revenue growth includes a decrease of $13.3 million attributable to the impact of straight-line accounting.

Segment revenue also increased by $3.9 million attributable to the positivenegative impact of foreign currency translation, which included, among others, $4.7 million related to fluctuations in the Euro and $3.5$5.4 million related to fluctuations in South African Rand, partially offset by a decrease of $3.7$5.0 million related to fluctuations in Nigerian Naira.Ghanaian Cedi and $2.7 million related to fluctuations in the Euro.

Latin America property segment revenue growth of $55.5$1.5 million was attributable to:
Tenant billings growth of $29.0$21.3 million, which was driven by:
$11.910.7 million due to colocations and amendments;
$9.04.7 million from contractual escalations, net of churn;
$6.44.0 million generated from newly acquired or constructed sites; and
$1.71.9 million from other tenant billings;
An increase of $7.8 million in other revenue, primarily due to $9.2 million from our fiber business in Brazil acquired in the fourth quarter of 2018, partially offset by revenue reserves; and
Pass-through revenue growth of $7.3 million; and
An increase of $14.9 million in other revenue, due in part to $15.3 million from our newly acquired fiber business and a $6.0 million reduction in revenue reserves from a settlement related to the judicial reorganization of a tenant in Brazil, partially offset by the impact of straight-line accounting.$5.2 million.

Segment revenue also increased by $4.3growth includes a decrease of $32.8 million attributable to the negative impact of foreign currency translation, which included, among others, $8.6$25.6 million related to fluctuations in Brazilian Real, $3.0 million related to fluctuations in Mexican Peso partially offset by a decrease of $4.6and $2.6 million related to fluctuations in Brazilian Real.Colombian Peso.

The increasedecrease in services segment revenue of $9.3$4.0 million was primarily attributable to an increasea decrease in site acquisition, projects.zoning and permitting services.

Gross Margin
Three Months Ended March 31,Percent Increase (Decrease) Three Months Ended March 31, Percent Increase (Decrease)
2018 2017  2019 2018 
Property           
U.S.$745.1
 $710.5
 5 % $795.0
 $745.1
 7 %
Asia115.1
 126.1
 (9) 110.9
 115.1
 (4)
EMEA115.1
 88.9
 29
 117.8
 115.1
 2
Latin America231.1
 185.8
 24
 229.9
 231.1
 (1)
Total property1,206.4
 1,111.3
 9
 1,253.6
 1,206.4
 4
Services19.2
 15.8
 22 % 17.3
 19.2
 (10)%

The increase in U.S. property segment gross margin was primarily attributable to the increase in revenue described above, partially offset by an increase in direct expenses of $4.9$5.0 million.

The decrease inAs discussed above, Asia property segment gross margin was primarily attributablenegatively impacted by carrier consolidation-driven churn in India. The decrease was also due to the decrease in revenue described above, as well as an increase in direct expenses of $1.6 million. Direct expenses increased an additional $6.9$37.6 million as a result of the Vodafone Acquisition and the Idea Acquisition, partially offset by the increase in revenue described above and a benefit of $17.5 million attributable to the impact of foreign currency translation.translation on direct expenses.

The increase in EMEA property segment gross margin was primarily attributable to the increase in revenue described above as well asand a decrease in direct expensesbenefit of $1.2 million. Direct expenses decreased an additional $1.2$4.2 million attributable to the impact of foreign currency translation.


translation on direct expenses, partially offset by an increase in direct expenses of $4.8 million, primarily due to the Kenya Acquisition.

The increasedecrease in Latin America property segment gross margin was primarily attributable to an increase in direct expenses of $11.0 million, partially due to our fiber business in Brazil, and a reduction of $2.7 million in


interest income related to TV Azteca, S.A. de C.V., partially offset by the increase in revenue described above partially offset by an increase in direct expensesand a benefit of $9.3 million. Direct expenses increased an additional $0.9$11.0 million attributable to the impact of foreign currency translation.translation on direct expenses.

The increasedecrease in services segment gross margin was primarily due to increased project volume.the decrease in revenue described above, partially offset by a decrease in direct expenses of $2.1 million.

Selling, General, Administrative and Development Expense (“SG&A”)
Three Months Ended March 31, Percent Increase (Decrease) Three Months Ended March 31, Percent Increase (Decrease)
2018 2017  2019 2018 
Property           
U.S.$35.4
 $34.6
 2% $41.7
 $35.4
 18 %
Asia44.2
 20.5
 116
 26.6
 44.2
 (40)
EMEA16.8
 16.5
 2
 18.4
 16.8
 10
Latin America24.6
 18.6
 32
 27.7
 24.6
 13
Total property121.0
 90.2
 34
 114.4
 121.0
 (5)
Services3.5
 3.1
 13
 3.4
 3.5
 (3)
Other80.4
 71.5
 12
 80.3
 80.4
 (0)
Total selling, general, administrative and development expense$204.9
 $164.8
 24% $198.1
 $204.9
 (3)%

The increases in each of our U.S., EMEA and Latin America property segments’segment SG&A were primarily driven by increased personnel costs to support our business, including additional costs as a result of the FPS Acquisition in our EMEA property segment and our acquisitionacquisitions of urban telecommunications assets in our Latin America property segment.

The increasedecrease in our Asia property segment SG&A was primarily driven by an increasea decrease in bad debt expense of $23.0 million as a result of receivable reserves with certain tenants, including Aircel.

The increase in other SG&A was primarily attributable to an increase in stock-based compensation expense of $6.4 million and an increase in corporate SG&A.

The increase in our services segment SG&A was primarily attributable to an increase in personnel costs within our tower services group.$17.0 million.

Operating Profit
Three Months Ended March 31, Percent Increase (Decrease) Three Months Ended March 31, Percent Increase (Decrease)
2018 2017  2019 2018 
Property           
U.S.$709.7
 $675.9
 5 % $753.3
 $709.7
 6 %
Asia70.9
 105.6
 (33) 84.3
 70.9
 19
EMEA98.3
 72.4
 36
 99.4
 98.3
 1
Latin America206.5
 167.2
 24
 202.2
 206.5
 (2)
Total property1,085.4
 1,021.1
 6
 1,139.2
 1,085.4
 5
Services15.7
 12.7
 24 % 13.9
 15.7
 (11)%

The growthincreases in operating profit for each of our U.S., and EMEA and Latin America property segments as well as our services segment, waswere primarily attributable to an increaseincreases in our segment gross margin, partially offset by increases in our segment SG&A.



The decreaseincrease in operating profit infor our Asia property segment was primarily attributable to a decrease in our segment SG&A, partially offset by a decrease in our segment gross margin.

The decrease in operating profit for our Latin America property segment was attributable to a decrease in our segment gross margin combined withand an increase in our segment SG&A.

The decrease in operating profit for our services segment was primarily attributable to a decrease in our segment gross margin, partially offset by a decrease in our segment SG&A.



Depreciation, Amortization and Accretion
 Three Months Ended March 31, Percent Increase (Decrease)
 2018 2017 
Depreciation, amortization and accretion$446.3
 $421.1
 6%
  Three Months Ended March 31, Percent Increase (Decrease)
  2019 2018 
Depreciation, amortization and accretion $436.9
 $446.3
 (2)%

The increasedecrease in depreciation, amortization and accretion expense for the three months ended March 31, 2018 was primarily attributable to the acquisition, lease or construction of new sites since the beginning of the prior-year period, which resulted in increases in property and equipment and intangible assets subject to amortization.foreign currency exchange rate fluctuations.

Other Operating Expenses
 
 Three Months Ended March 31, Percent Increase (Decrease)
 2018 2017 
Other operating expenses$167.8
 $6.2
 2,606%
  Three Months Ended March 31, Percent Increase (Decrease)
  2019 2018 
Other operating expenses $20.1
 $167.8
 (88)%

The increasedecrease in other operating expenses forwas primarily attributable to a decrease in impairment charges of $129.3 million and a decrease in losses on sales or disposals of assets of $17.6 million. During the three months ended March 31, 2018 was primarily attributable to an increase in2019, we recorded impairment charges of $145.3 million. These$18.1 million as compared to $147.4 million impairment charges included $40.1 million related to tower and network intangible assets and $107.3 million related to tenant-related intangible assets in our Asia property segment due to Aircel’s filing for bankruptcy protection. The increase was also attributable to the absence of a $21.5 million refund of acquisition costs recorded in the prior-year period related to an acquisitionas a result of one of our tenants in Brazil.India, Aircel Ltd.’s, filing for bankruptcy protection in February 2018.

Total Other Expense
 Three Months Ended March 31, Percent Increase (Decrease)
 2018 2017 
Total other expense$153.7
 $197.2
 (22)%
  Three Months Ended March 31, Percent Increase (Decrease)
  2019 2018 
Total other expense $173.3
 $153.7
 13%

Total other expense consists primarily of interest expense and realized and unrealized foreign currency gains and losses. We record unrealized foreign currency gains or losses as a result of foreign currency exchange rate fluctuations primarily associated with our intercompany notes and similar unaffiliated balances denominated in a currency other than the subsidiaries’ functional currencies.

The decreaseincrease in total other expense during the three months ended March 31, 2018 was primarily due to a loss on retirement of long-term obligations of $55.4 million recordedan increase in the prior-year period attributable to the redemption of the 7.25% senior unsecured notes due 2019 and the repayment of the Secured Cellular Site Revenue Notes, Series 2012-2 Class A, Series 2012-2 Class B and Series 2012-2 Class C and Secured Cellular Site Revenue Notes, Series 2010-2, Class C and Series 2010-2, Class F. The decrease was offset by additionalnet interest expense of $15.9$10.9 million, primarily due to a $2.2$0.5 billion increase in our average debt outstanding.


outstanding, and a decrease in foreign currency gains of $3.2 million.

Income Tax Provision (Benefit) Provision
Three Months Ended March 31, Percent Increase (Decrease)Three Months Ended March 31, Percent Increase (Decrease)
2018 2017 2019 2018 
Income tax (benefit) provision$(31.1) $26.8
 (216)%
Income tax provision (benefit)$34.0
 $(31.1) (209)%
Effective tax rate(12.5)% 8.0%  7.7% (12.5)%  

As a real estate investment trust for U.S. federal income tax purposes (“REIT”), we may deduct earnings distributed to stockholders against the income generated by our REIT operations. In addition, we are able to offset certain income by utilizing our net operating losses (“NOLs”), subject to specified limitations. Consequently, the effective tax rate on income from continuing operations for the three months ended March 31, 20182019 and 20172018 differs from the federal statutory rate.

The change in the income tax provision (benefit) provisionwas primarily attributable an increase in foreign earnings subject to taxation for the three months ended March 31, 2018 was primarily attributable2019 as compared to a one-time benefit for merger-related activity in our Asia property segment and the tax effect of an increase in impairment charges and a one-time benefit for merger-related activity in Asia.the three months ended March 31, 2018.


Net Income/Adjusted EBITDA and Net Income/Nareit FFO/Consolidated AFFO
 
Three Months Ended March 31, Percent Increase (Decrease) Three Months Ended March 31, Percent Increase (Decrease)
2018 2017  2019 2018 
Net income$280.3
 $307.4
 (9)% $407.6
 $280.3
 45 %
Income tax (benefit) provision(31.1) 26.8
 (216)
Income tax provision (benefit) 34.0
 (31.1) (209)
Other income(27.8) (29.3) (5) (21.9) (27.8) (21)
Loss on retirement of long-term obligations—
 55.4
 (100) 0.1
 —
 100
Interest expense199.6
 183.7
 9
 207.5
 199.6
 4
Interest income(15.4) (9.9) 56
 (12.4) (15.4) (19)
Other operating expenses167.8
 6.2
 2,606
 20.1
 167.8
 (88)
Depreciation, amortization and accretion446.3
 421.1
 6
 436.9
 446.3
 (2)
Stock-based compensation expense42.7
 36.2
 18
 42.5
 42.7
 (0)
Adjusted EBITDA$1,062.4
 $997.6
 6 % $1,114.4
 $1,062.4
 5 %
Three Months Ended March 31, Percent Increase (Decrease) Three Months Ended March 31, Percent Increase (Decrease)
2018 2017  2019 2018 
Net income$280.3
 $307.4
 (9)% $407.6
 $280.3
 45 %
Real estate related depreciation, amortization and accretion397.3
 378.0
 5
 388.5
 397.3
 (2)
Losses from sale or disposal of real estate and real estate related impairment charges(1)166.3
 7.4
 2,147 19.1
 166.3
 (89)
Dividends on preferred stock(9.4) (26.8) (65) —
 (9.4) (100)
Adjustments for unconsolidated affiliates and noncontrolling interests(86.9) (31.7) 174
 (45.6) (86.9) (48)
Nareit FFO attributable to American Tower Corporation common stockholders$747.6
 $634.3
 18 % $769.6
 $747.6
 3 %
Straight-line revenue(17.8) (51.9) (66) (5.3) (17.8) (70)
Straight-line expense14.0
 17.0
 (18) 9.2
 14.0
 (34)
Stock-based compensation expense42.7
 36.2
 18
 42.5
 42.7
 (0)
Deferred portion of income tax (1)(2)(55.8) 3.7
 (1,608) (2.9) (55.8) (95)
Non-real estate related depreciation, amortization and accretion49.0
 43.1
 14
 48.4
 49.0
 (1)
Amortization of deferred financing costs, capitalized interest, debt discounts and premiums and long-term deferred interest charges2.9
 6.0
 (52) 6.4
 2.9
 121
Other income (2)(3)(27.8) (29.3) (5) (21.9) (27.8) (21)
Loss on retirement of long-term obligations—
 55.4
 (100) 0.1
 —
 100
Other operating expense (income) (3)1.5
 (1.2) (225)
Other operating expense (4) 1.0
 1.5
 (33)
Capital improvement capital expenditures(33.7) (20.5) 64
 (28.2) (33.7) (16)
Corporate capital expenditures(2.4) (3.2) (25) (3.4) (2.4) 42
Adjustments for unconsolidated affiliates and noncontrolling interests86.9
 31.7
 174
 45.6
 86.9
 (48)
Consolidated AFFO$807.1
 $721.3
 12 % $861.1
 $807.1
 7 %
Adjustments for unconsolidated affiliates and noncontrolling interests (4)(5)(47.8) (40.8) 17 % (43.3) (47.8) (9)%
AFFO attributable to American Tower Corporation common stockholders$759.3
 $680.5
 12 % $817.8
 $759.3
 8 %
_______________
(1)Included in these amounts are impairment charges of $18.1 million and $147.4 million, respectively.
(2)For the three months ended March 31, 2018, amount includes a tax benefit primarily attributable to the tax effect of an increase in impairment charges and a one-time benefit for merger-related activity in our Asia property segment.
(2)(3)Includes unrealized gains on foreign currency exchange rate fluctuations of $24.9$20.1 million and $28.0$23.3 million, respectively.
(3)(4)IncludesPrimarily includes acquisition-related costs and integration and acquisition-related costs.


(4)(5)Includes adjustments for the impact on both Nareit FFO attributable to American Tower Corporation common stockholders as well as the other line items included in the calculation of Consolidated AFFO. 

The decreaseincrease in net income was primarily due to an increase in our operating profit, a decrease in other operating expenses, primarily related to an increasea decrease in impairment charges of $145.3$129.3 million increasesand decreases in interest expense and depreciation, amortization and accretion expense, partially offset by an increase in our operating profit, the change in the income tax provision (benefit) provision and the absence of a loss on retirement of long-term obligations of $55.4 million recordedan increase in the prior-year period.interest expense.

The increase in Adjusted EBITDA was primarily attributable to the increase in our gross margin and was partially offset by an increasea decrease in SG&A of $33.7$6.7 million, excluding the impact of stock-based compensation expense.

The growth in Consolidated AFFO and AFFO attributable to American Tower Corporation common stockholders was primarily attributable to the increase in our operating profit, a decrease in dividends on preferred stock and a decrease in the adjustment for straight-line revenue and a decrease in dividends on preferred stock, partially offset by increasesthe change in cash paidthe income tax provision (benefit) net of deferred amounts and the adjustment for interest, capital improvement expenditures and corporate SG&A.straight-line expense.



Liquidity and Capital Resources
The information in this section updates as of March 31, 20182019 the “Liquidity and Capital Resources” section of the 20172018 Form 10-K and should be read in conjunction with that report.
 
Overview
As a holding company, our cash flows are derived primarily from the operations of, and distributions from, our operating subsidiaries or funds raised through borrowings under our credit facilities and debt or equity offerings.
The following table summarizes the significant components of our liquidity (in millions):
As of March 31, 2018As of March 31, 2019
Available under the 2013 Credit Facility$1,108.2
$510.0
Available under the 2014 Credit Facility1,400.0
2,100.0
Letters of credit(10.3)(10.0)
Total available under credit facilities, net2,497.9
2,600.0
Cash and cash equivalents1,125.4
1,004.8
Total liquidity$3,623.3
$3,604.8
Subsequent to March 31, 2018,2019, we borrowed a net amount of $749.1an additional $920.0 million under our multicurrency senior unsecured revolving credit facility entered into in June 2013, as amended (the “2013 Credit Facility”), which included the repayment of 38.0 million Euros previously borrowed by one of our German subsidiaries. We primarily used the borrowings to repay existing indebtedness and for general corporate purposes. We also repaid $600.0 million under our multicurrency senior unsecured revolving credit facility entered into in January 2012 and amended and restated in September 2014, as further amended (the “2014 Credit Facility”). The borrowings were used to repay existing indebtedness and for general corporate purposes.
Summary cash flow information is set forth below (in millions):
Three Months Ended March 31,Three Months Ended March 31,
2018 20172019 2018
Net cash provided by (used for):      
Operating activities$791.8
 $678.2
$785.1
 $791.8
Investing activities(1,280.6) (920.3)(323.3) (1,280.6)
Financing activities817.3
 157.9
(650.4) 817.3
Net effect of changes in foreign currency exchange rates on cash and cash equivalents(4.5) 6.0
(16.6) (4.5)
Net increase (decrease) in cash and cash equivalents$324.0
 $(78.2)
Net increase in cash and cash equivalents$(205.2) $324.0
We use our cash flows to fund our operations and investments in our business, including tower maintenance and improvements, communications site construction, and managed network installations and tower and land acquisitions. Additionally, we use our cash flows to make distributions, including distributions of our REIT taxable income to maintain our qualification for taxation as a REIT under the Internal Revenue Code of 1986, as amended.amended (the “Code”). We may also repay or repurchase our existing indebtedness or equity from time to time. We typically fund our international expansion efforts primarily through a combination of cash on hand, intercompany debt and equity contributions. In April 2019, Tata Teleservices and Tata Sons Limited, two of our minority holders in India, delivered notice of exercise of their put options with respect to their remaining combined holdings in our Indian subsidiary, ATC Telecom Infrastructure Private Limited (“ATC TIPL”) (see note 18 to our consolidated and condensed consolidated financial statements included in this Quarterly Report on Form 10-Q). Accordingly, we expect to pay an amount equivalent to INR 24.8 billion (approximately $358.7 million at the March 31, 2019 exchange rate) to redeem the put shares in 2019.
As of March 31, 2018,2019, we had total outstanding principal indebtedness of $21.5$21.3 billion, with a current portion of $2.8$2.1 billion. During the three months ended March 31, 2018,2019, we generated sufficient cash flow from operations, together with borrowings under our credit facilities, to fund our capital expenditures and debt service obligations, as well as our required distributions. We believe cash generated by operating activities during the year ending December 31, 2018,2019, together with our borrowing capacity under our credit facilities, will be sufficient to fund our required distributions, capital expenditures, debt service obligations (interest and principal repayments) and signed acquisitions. As of


March 31, 2018,2019, we had $1.0 billion$831.6 million of cash and cash equivalents held by our foreign subsidiaries, of which $661.3$385.7 million was held by our joint ventures. A portion of these amounts are being held in anticipation of funding signed acquisitions. While certain subsidiaries may pay us interest or principal on intercompany debt, it has not been our practice to repatriate earnings from our foreign subsidiaries primarily due to our


ongoing expansion efforts and related capital needs. However, in the event that we do repatriate any funds, we may be required to accrue and pay certain taxes.

Cash Flows from Operating Activities

The increase in cash provided by operating activities for the three months ended March 31, 20182019 was attributable to an increase in the operating profit of most of our property segments, a decrease in straight-line revenue and an increase in interest income, partially offset by an increase in cash used for working capital.

Cash Flows from Investing Activities

Our significant investing activities during the three months ended March 31, 20182019 are highlighted below:

We spent $673.4$91.1 million for acquisitions, primarily to fund the acquisition of communications sites from Vodafone India Limited and Vodafone Mobile Services Limited in India.acquisitions.

We spent $206.3$230.6 million for capital expenditures, as follows (in millions):
Discretionary capital projects (1)$67.0
$84.6
Ground lease purchases(2)31.7
33.6
Capital improvements and corporate expenditures (2)(3)36.1
31.6
Redevelopment50.3
61.8
Start-up capital projects21.2
19.0
Total capital expenditures (3)(4)$206.3
$230.6
_______________
(1)Includes the construction of 313728 communications sites globally.
(2)Includes $9.3$11.5 million of capital leaseperpetual land easement payments includedreported in Repayments of notes payable, credit facilities, senior notes, secured debtDeferred financing costs and capital leasesother financing activities in the cash flowflows from financing activities in our condensed consolidated statements of cash flows.
(3)Includes $1.3 million of finance lease payments reported in Repayments of notes payable, credit facilities, senior notes, secured debt, term loan, finance leases and capital leases in the cash flows from financing activities in our condensed consolidated statements of cash flows.
(4)Net of purchase credits of $1.5$3.0 million on certain assets, which are reportedrecorded in operatinginvesting activities in our condensed and consolidated statements of cash flows.

We plan to continue to allocate our available capital, after satisfying our distribution requirements, among investment alternatives that meet our return on investment criteria, while maintaining our commitment to our long-term financial policies. Accordingly, we expect to continue to deploy capital through our annual capital expenditure program, including land purchases and new site construction, and through acquisitions. We also regularly review our tower portfolios as to capital expenditures required to upgrade our towers to our structural standards or address capacity, structural or permitting issues. We expect that our 20182019 total capital expenditures will be between $850$950.0 million and $950 million,$1.1 billion, as follows (in millions):

Discretionary capital projects (1)$250
to$290
$315
to$355
Ground lease purchases150
to170
150
to160
Capital improvements and corporate expenditures150
to160
160
to180
Redevelopment210
to230
255
to265
Start-up capital projects90
to100
70
to90
Total capital expenditures$850
to$950
$950
to$1,050
_______________
(1)    Includes the construction of approximately 2,5002,750 to 3,5003,750 communications sites globally.



Cash Flows from Financing Activities

Our significant financing activities were as follows (in millions):
Three Months Ended March 31,Three Months Ended March 31,
2018 20172019 2018
(Repayments of) proceeds from credit facilities, net(330.0) 1,038.8
Proceeds from issuance of senior notes, net$1,241.6
 $—
Proceeds from (repayments of) credit facilities, net465.0
 (330.0)
Proceeds from term loan1,500.0
 —
1,300.0
 1,500.0
Repayments of term loan(1,500.0) —
Proceeds from issuance of securities in securitization transaction500.0
 —
—
 500.0
Repayments of securitized debt(500.0) (302.5)—
 (500.0)
Repayment of senior notes—
 (300.0)(1,000.0) —
(Distributions to) contributions from noncontrolling interest holders, net (1)(0.3) 265.4
Distributions to noncontrolling interest holders, net(13.8) (0.3)
Purchase of noncontrolling interest (1)(425.7) —
Distributions paid on common and preferred stock(323.2) (277.2)(377.1) (323.2)
Purchases of common stock—
 (147.2)
__________________________
(1)     2017 contributions primarily relate to the funding of the FPS Acquisition.    
(1)In the fourth quarter of 2018, two of our minority holders in India delivered notice of exercise of their put options with respect to certain shares in our Indian subsidiary, ATC TIPL (see note 12 to our consolidated and condensed consolidated financial statements included in this Quarterly Report on Form 10-Q). During the three months ended March 31, 2019, we completed the redemption of the put shares for total consideration of INR 29.4 billion ($425.7 million at the date of redemption).

Securitizations

Senior Notes
Repayment of Series 2013-1A Securities3.40% Senior Notes—. On the March 2018 paymentFebruary 15, 2019 maturity date, we repaid the $500.0 million$1.0 billion aggregate principal amount outstanding under the Secured Tower Revenue Securities, Series 2013-1Aof 3.40% senior unsecured notes due 2019 (the “Series 2013-1A Securities”“3.40% Notes”), pursuant to the terms of the agreements governing such securities.. The repayment was funded3.40% Notes were repaid with borrowings underfrom our multicurrency senior unsecured revolving credit facility entered into in June 2013, as amended (the “2013 Credit Facility”), and the 2014 Credit Facility and cash on hand.Facility. Upon completion of the repayment, none of the 3.40% Notes remain outstanding.

Secured Tower Revenue Securities, Series 2018-1, Subclass A3.375% Senior Notes and Series 2018-1, Subclass R3.950% Senior Notes Offering—. On March 29, 2018,15, 2019, we completed a securitization transaction (the “2018 Securitization”), in which the American Tower Trust I (the “Trust”) issued $500.0registered public offering of $650.0 million aggregate principal amount of Secured Tower Revenue Securities, Series 2018-1, Subclass A3.375% senior unsecured notes due 2024 (the “Series 2018-1A Securities”“3.375% Notes”). To satisfy the applicable risk retention requirements of Regulation RR promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act” and such requirements, the “Risk Retention Rules”), the Trust issued, and one of our affiliates purchased, $26.4$600.0 million aggregate principal amount of Secured Tower Revenue Securities, Series 2018-1, Subclass R3.950% senior unsecured notes due 2029 (the “Series 2018-1R Securities”“3.950% Notes” and, togethercollectively with the Series 2018-1A Securities,3.375% Notes, the “2018 Securities”“Notes”). The net proceeds from this offering were approximately $1,231.0 million, after deducting commissions and estimated expenses. We used the net proceeds to retain an “eligible horizontal residual interest” (as defined inrepay existing indebtedness under the Risk Retention Rules) in an amount equal to at least 5% of the fair value of the 2018 Securities.2013 Credit Facility and 2014 Credit Facility.

The assets3.375% Notes will mature on May 15, 2024 and bear interest at a rate of 3.375% per annum. The 3.950% Notes will mature on March 15, 2029 and bear interest at a rate of 3.950% per annum. Accrued and unpaid interest on the Trust consist3.375% Notes will be payable in U.S. Dollars semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2019. Accrued and unpaid interest on the 3.950% Notes will be payable in U.S. Dollars semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2019. Interest on the Notes will accrue from March 15, 2019 and will be computed on the basis of a nonrecourse loan (the “Loan”) made by the Trust to American Tower Asset Sub, LLC and American Tower Asset Sub II, LLC (together, the “AMT Asset Subs”). The AMT Asset Subs are jointly and severally liable under the Loan, which is secured primarily by mortgages on the AMT Asset Subs’ interests in 5,116 broadcast and wireless communications towers and related assets (the “Trust Sites”).360-day year comprised of twelve 30-day months. 

The 2018 Securities correspond to components ofWe may redeem the Loan made to the AMT Asset Subs pursuant to the Second Amended and Restated Loan and Security Agreement among the Trust and the AMT Asset Subs, dated as of March 29, 2018 (the “Loan Agreement”) and were issued in two separate subclasses of the same series. The 2018 Securities represent a pass-through interest in the components of the Loan corresponding to the 2018 Securities. The Series 2018-1A Securities have an interest rate of 3.652% and the Series 2018-1R Securities have an interest rate of 4.459%. The 2018 Securities have an expected life of approximately ten years with a final repayment date in March 2048.

The AMT Asset Subs may prepay the LoanNotes at any time, provided it is accompanied by applicable prepayment consideration. If the prepayment occurs within thirty-six monthsin whole or in part, at a redemption price equal to 100% of the anticipated repayment date for the 2018 Securities, no prepayment consideration is due. The entire unpaid principal balanceamount of the components of the Loan correspondingNotes plus a make-whole premium, together with accrued interest to the 2018 Securitiesredemption date. If we redeem the 3.375% Notes on or after April 15, 2024 or the 3.950% Notes on or after December 15, 2028, we will not be duerequired to pay a make-whole premium. In addition, if we undergo a change of control and corresponding ratings decline, each as defined in March 2048.

The Loan is secured by (1) mortgages, deeds of trust and deedsthe supplemental indenture, we may be required to secure debt on substantiallyrepurchase all of the Trust Sitesapplicable Notes at a purchase price equal to 101% of the principal amount of such Notes, plus accrued and their operating cash flows, (2) a securityunpaid interest in substantially(including additional interest, if any), up to but not including the repurchase date. The Notes rank equally with all of the AMT Asset Subs’ personal propertyour other senior unsecured debt and are structurally subordinated to all existing and future indebtedness and other obligations of our subsidiaries.


fixtures and (3) the AMT Asset Subs’ rights under that certain management agreement among the AMT Asset Subs and SpectraSite Communications, LLC entered into in March 2013. American Tower Holding Sub, LLC (the “Guarantor”), whose only material assets are its equity interests in each of the AMT Asset Subs, and American Tower Guarantor Sub, LLC whose only material asset is its equity interests in the Guarantor, have each guaranteed repayment of the Loan and pledged their equity interests in their respective subsidiary or subsidiaries as security for such payment obligations.

The Secured Tower Revenue Securities, Series 2013-2A (the “Series 2013-2A Securities”supplemental indenture contains certain covenants that restrict our ability to merge, consolidate or sell assets and our (together with our subsidiaries’) issued in a securitization transaction in March 2013 (the “2013 Securitization” and, together with the 2018 Securitization, the “Trust Securitizations”) remain outstanding andability to incur liens. These covenants are subject to a number of exceptions, including that we and our subsidiaries may incur certain liens on assets, mortgages or other liens securing indebtedness if the termsaggregate amount of such liens does not exceed 3.5x Adjusted EBITDA, as defined in the Second Amended and Restated Trust and Servicing Agreement entered into in connection with the 2018 Securitization. The component of the Loan corresponding to the Series 2013-2A Securities also remains outstanding and is subject to the terms of the Loan Agreement.

For more information regarding the Trust Securitizations, see “—Factors Affecting Sources of Liquidity” below.supplemental indenture.

Bank Facilities

2013 Credit Facility. During the three months ended March 31, 2018,2019, we borrowed an aggregate of $620.0$995.0 million and repaid an aggregate of $1.1 billion$530.0 million of revolving indebtedness under the 2013 Credit Facility. We used the borrowings to fund acquisitions, to purchase noncontrolling interests in ATC TIPL, to repay existing indebtedness and for general corporate purposes. We currently have $4.0$3.8 million of undrawn letters of credit and maintain the ability to draw down and repay amounts under the 2013 Credit Facility in the ordinary course.

2014 Credit Facility. During the three months ended March 31, 2018,2019, we borrowed an aggregate of $1.1 billion$705.0 million and repaid an aggregate of $945.0$705.0 million of revolving indebtedness under the 2014 Credit Facility. We used the borrowings to repay existing indebtedness including the Series 2013-1A Securities, and for general corporate purposes. We currently have $6.3$6.2 million of undrawn letters of credit and maintain the ability to draw down and repay amounts under the 2014 Credit Facility in the ordinary course.

20182019 Term Loan. On March 29, 2018,February 14, 2019, we entered into a $1.5$1.3 billion unsecured term loan (the “2018“2019 Term Loan”), the net proceeds of which were used, together with cash on hand, to repay $1.1 billion ofall outstanding indebtedness under the 2013 Credit Facility and $445.0 million of outstanding indebtedness under the 2014 Credit Facility.our $1.5 billion unsecured term loan entered into on March 29, 2018. Any outstanding principal and accrued but unpaid interest will be due and payable in full at maturity.

OurAs of March 31, 2019, the key terms under the 2013 Credit Facility, 2014 Credit Facility, our $1.0 billion unsecured term loan entered into in October 2013, as amended (the “2013 Term Loan”), and the 2019 Term Loan were as follows:
Bank Facility (1)Outstanding Principal Balance ($ in millions)Maturity Date LIBOR borrowing interest rate range (2)Base rate borrowing interest rate range (2)Current margin over LIBOR and the base rate, respectively
2013 Credit Facility$2,340.0
June 28, 2022(3)0.875% - 1.750%0.000% - 0.750%1.125% and 0.125%
2014 Credit Facility$—
January 31, 2024(3)0.875% - 1.750%0.000% - 0.750%1.125% and 0.125%
2013 Term Loan$1,000.0
January 31, 2024 0.875% - 1.750%0.000% - 0.750%1.125% and 0.125%
2019 Term Loan$1,300.0
February 13, 2020 0.550% - 1.375%0.000% - 0.375%0.800% and 0.000%
___________
(1)    Currently borrowed at the London Interbank Offered Rate (“LIBOR”).
(2)Represents interest rate above LIBOR for LIBOR based borrowings and the interest rate above the defined base rate for base rate borrowings, in each case based on our debt ratings.
(3)Subject to two optional renewal periods.

We must pay a quarterly commitment fee on the undrawn portion of each of the 2013 Credit Facility and the 2014 Credit Facility. The commitment fee for the 2013 Credit Facility and the 2014 Credit Facility ranges from 0.100% to 0.350% per annum, based upon our debt ratings, and is currently 0.125%.
The 2013 Term Loan, the 2019 Term Loan, the 2013 Credit Facility and the 2018 Term Loan2014 Credit Facility do not require amortization of principal and may be paid prior to maturity in whole or in part at our option without penalty or premium. We have the option of choosing either a defined base rate or the London Interbank Offered Rate (“LIBOR”)LIBOR as the applicable base rate for borrowings under these bank facilities.

As of March 31, 2018, the key terms under the 2013 Credit Facility, the 2014 Credit Facility, the 2013 Term Loan and the 2018 Term Loan were as follows:

Bank Facility (1)Outstanding Principal Balance Maturity Date LIBOR borrowing interest rate range (2)Base rate borrowing interest rate range (2)Current margin over LIBOR and the base rate, respectively
2013 Credit Facility$1,641.8
(3)June 28, 2021(4)0.875% - 1.750%0.000% - 0.750%1.125% and 0.125%
2014 Credit Facility$600.0
 January 31, 2023(4)1.000% - 2.000%0.000% - 1.000%1.250% and 0.250%
2013 Term Loan$1,000.0
 January 31, 2023 1.000% - 2.000%0.000% - 1.000%1.250% and 0.250%
2018 Term Loan$1,500.0
 March 29, 2019 0.625% - 1.500%0.000% - 0.500%0.875% and 0.000%
_______________
(1)    Currently borrowed at LIBOR, except where noted.
(2)Represents interest rate above LIBOR for LIBOR based borrowings and the interest rate above the defined base rate for base rate borrowings, in each case based on our debt ratings.
(3)    Includes $140.0 million borrowed at the base rate of 4.750% plus a margin of 0.125%.
(4)Subject to two optional renewal periods.



We must pay a quarterly commitment fee on the undrawn portion of each of the 2013 Credit Facility and the 2014 Credit Facility. The commitment fee for the 2013 Credit Facility ranges from 0.100% to 0.350% per annum, based upon our debt ratings, and is currently 0.125%. The commitment fee for the 2014 Credit Facility ranges from 0.100% to 0.400% per annum, based upon our debt ratings, and is currently 0.150%.
The loan agreements for each of the 2013 Term Loan, 2019 Term Loan, the 2013 Credit Facility and the 2014 Credit Facility and the 2018 Term Loan contain certain reporting, information, financial and operating covenants and other restrictions (including limitations on additional debt, guaranties, sales of assets and liens) with which we must comply. Failure to comply with the financial and operating covenants of the loan agreements could not only prevent us from being able to borrow additional funds under the revolving credit facilities, but may constitute a default, which could result in, among other things, the amounts outstanding, including all accrued interest and unpaid fees, becoming immediately due and payable.


Stock Repurchase Programs. In March 2011, our Board of Directors approved a stock repurchase program, pursuant to which we are authorized to repurchase up to $1.5 billion of our common stock (the “2011 Buyback”). In December 2017, our Board of Directors approved an additional stock repurchase program, pursuant to which we are authorized to repurchase up to $2.0 billion of our common stock (the “2017 Buyback” and, together with the 2011 Buyback, the “Buyback Programs”).
During the three months ended March 31, 2018,2019, we had no repurchases under either program.

We expect to continue managing the pacing of the remaining $2.3$2.1 billion (as of April 24, 2018) under the Buyback Programs in response to general market conditions and other relevant factors. We expect to fund further repurchases of our common stock through a combination of cash on hand, cash generated by operations and borrowings under our credit facilities. Purchases under the Buyback Programs are subject to us having available cash to fund repurchases.
Sales of Equity Securities. We receive proceeds from sales of our equity securities pursuant to our employee stock purchase plan and upon exercise of stock options granted under our equity incentive plans. For the three months ended March 31, 2018,2019, we received an aggregate of $20.0$27.2 million in proceeds upon exercises of stock options.
Distributions. As a REIT, we must annually distribute to our stockholders an amount equal to at least 90% of our REIT taxable income (determined before the deduction for distributed earnings and excluding any net capital gain). Generally, we have distributed, and expect to continue to distribute, all or substantially all of our REIT taxable income after taking into consideration our utilization of NOLs. We have distributed an aggregate of approximately $4.6$6.1 billion to our common stockholders, including the dividend paid in April 2018,2019, primarily classified as ordinary income.income that may be treated as qualified REIT dividends under Section 199A of the Code for taxable years ending after 2017 and before 2026.
During the three months ended March 31, 2018,2019, we paid $0.70$0.84 per share, or $300.2$370.5 million, to common stockholders of record. In addition, we declared a distribution of $0.75$0.90 per share, or $331.2$397.8 million, paid on April 27, 201826, 2019 to our common stockholders of record at the close of business on April 11, 2018.2019.
The amount, timing and frequency of future distributions will be at the sole discretion of our Board of Directors and will depend on various factors, a number of which may be beyond our control, including our financial condition and operating cash flows, the amount required to maintain our qualification for taxation as a REIT and reduce any income and excise taxes that we otherwise would be required to pay, limitations on distributions in our existing and future debt and preferred equity instruments, our ability to utilize NOLs to offset our distribution requirements, limitations on our ability to fund distributions using cash generated through our taxable REIT subsidiaries and other factors that our Board of Directors may deem relevant.

During the three months ended March 31, 2018, all outstanding shares of our 5.50% Mandatory Convertible Preferred Stock, Series B, par value $0.01 per share (the “Series B Preferred Stock”), converted automatically at a rate of 8.7420 per share of Series B Preferred Stock, or 0.8742 per depositary share, each representing a 1/10th interest in a share of Series B Preferred Stock, into an aggregate of 12,020,064 shares of our common stock pursuant to the provisions of the Certificate of Designations governing the Series B Preferred Stock.
During the three months ended March 31, 2018, we paid the final dividend of $13.75 per share, or $18.9 million, to holders of the Series B Preferred Stock of record at the close of business on February 1, 2018.


We accrue distributions on unvested restricted stock units, which are payable upon vesting. As of March 31, 2018,2019, the amount accrued for distributions payable related to unvested restricted stock units was $7.1$8.9 million. During the three months ended March 31, 2018,2019, we paid $4.1$6.6 million of distributions upon the vesting of restricted stock units.

Factors Affecting Sources of Liquidity
    
As discussed in the “Liquidity and Capital Resources” section of the 20172018 Form 10-K, our liquidity depends on our ability to generate cash flow from operating activities, borrow funds under our credit facilities and maintain compliance with the contractual agreements governing our indebtedness. We believe that the debt agreements discussed below represent our material debt agreements that contain covenants, our compliance with which would be material to an investor’s understanding of our financial results and the impact of those results on our liquidity.

Restrictions Under Loan Agreements Relating to Our Credit Facilities. The loan agreements for the 2013 Credit Facility, the 2014 Credit Facility, the 2013 Term Loan and the 20182019 Term Loan contain certain financial and operating covenants and other restrictions applicable to us and our subsidiaries that are not designated as unrestricted subsidiaries on a consolidated basis. These restrictions include limitations on additional debt, distributions and dividends, guaranties, sales of assets and liens. The loan agreements also contain covenants that establish financial tests with which we and our restricted subsidiaries must comply related to total leverage and senior secured leverage, as set forth in the table below. In the event that our debt ratings fall below investment grade, we must also maintain an interest coverage ratio of Adjusted EBITDA to Interest Expense (each as defined in the applicable loan agreement) of at least 2.50:1.00. As of March 31, 2018,2019, we were in compliance with each of these covenants.


    
Compliance Tests For The 12 Months Ended
March 31, 20182019
($ in billions)
  Ratio (1) Additional Debt Capacity Under Covenants (2) Capacity for Adjusted EBITDA Decrease Under Covenants (3)
Consolidated Total Leverage Ratio 
Total Debt to Adjusted EBITDA
≤ 6.00:1.00
 ~ $4.4$7.6 ~ $0.7$1.3
Consolidated Senior Secured Leverage Ratio 
Senior Secured Debt to Adjusted EBITDA
≤ 3.00:1.00
 ~ $9.3$11.5 (4) ~ $3.1$3.8
_______________
(1)Each component of the ratio as defined in the applicable loan agreement.
(2)Assumes no change to Adjusted EBITDA.
(3)Assumes no change to our debt levels.
(4)Effectively, however, additional Senior Secured Debt under this ratio would be limited to the capacity under the Consolidated Total Leverage Ratio.

The loan agreements for our credit facilities also contain reporting and information covenants that require us to provide financial and operating information to the lenders within certain time periods. If we are unable to provide the required information on a timely basis, we would be in breach of these covenants.

Failure to comply with the financial maintenance tests and certain other covenants of the loan agreements for our credit facilities could not only prevent us from being able to borrow additional funds under these credit facilities, but may constitute a default under these credit facilities, which could result in, among other things, the amounts outstanding, including all accrued interest and unpaid fees, becoming immediately due and payable. If this were to occur, we may not have sufficient cash on hand to repay such indebtedness. The key factors affecting our ability to comply with the debt covenants described above are our financial performance relative to the financial maintenance tests defined in the loan agreements for these credit facilities and our ability to fund our debt service obligations. Based upon our current expectations, we believe our operating results during the next 12 months will be sufficient to comply with these covenants.

Restrictions Under Agreements Relating to the 2015 Securitization and the Trust Securitizations. The indenture and related supplemental indentures governing the American Tower Secured Revenue Notes, Series 2015-1, Class A (the “Series 2015-1 Notes”) and the American Tower Secured Revenue Notes, Series 2015-2, Class A (the “Series 2015-2 Notes,” and, together with the Series 2015-1 Notes, the “2015 Notes”) issued by GTP Acquisition Partners I, LLC (“GTP


Acquisition Partners”) in a private securitization transaction in May 2015 (the “2015 Securitization”) and the Loan Agreementloan agreement related to the securitization transactions completed in March 2013 (the “2013 Securitization”) and March 2018 (the “2018 Securitization” and, together with the 2013 Securitization, the “Trust Securitizations”) include certain financial ratios and operating covenants and other restrictions customary for transactions subject to rated securitizations. Among other things, the AMT Asset Subs and GTP Acquisition Partners and American Tower Asset Sub, LLC and American Tower Asset Sub II, LLC (together, the “AMT Asset Subs”) are prohibited from incurring other indebtedness for borrowed money or further encumbering their assets, subject to customary carve-outs for ordinary course trade payables and permitted encumbrances (as defined in the applicable agreement).
Under the agreements, amounts due will be paid from the cash flows generated by the assets securing the 2015 Notes andor the assets securing the Loan,nonrecourse loan that secures the Secured Tower Revenue Securities, Series 2013-2A (the “Series 2013-2A Securities”), Secured Tower Revenue Securities, Series 2018-1, Subclass A (the “Series 2018-1A Securities”), and the Secured Tower Revenue Securities, Series 2018-1, Subclass R (the “Series 2018-1R Securities” and, together with the Series 2018-1A Securities, the “2018 Securities”) issued in the Trust Securitizations (the “Loan”), as applicable, which must be deposited into certain reserve accounts, and thereafter distributed, solely pursuant to the terms of the applicable agreement. On a monthly basis, after payment of all required amounts under the applicable agreement, subject to the conditions described in the table below, the excess cash flows generated from the operation of such assets are released to GTP Acquisition Partners or the AMT Asset Subs, as applicable, which can then be distributed to, and used by, us. As of March 31, 2018, $105.52019, $79.1 million held in such reserve accounts was classified as restricted cash.

Certain information with respect to the 2015 Securitization and the Trust Securitizations is set forth below. The debt service coverage ratio (“DSCR”) is generally calculated as the ratio of the net cash flow (as defined in the applicable


agreement) to the amount of interest, servicing fees and trustee fees required to be paid over the succeeding 12 months on the principal amount of the 2015 Notes or the Loan, as applicable, that will be outstanding on the payment date following such date of determination.
Issuer or BorrowerNotes/Securities IssuedConditions Limiting Distributions of Excess CashExcess Cash Distributed During the Three Months Ended March 31, 2018DSCR as of March 31, 2018Capacity for Decrease in Net Cash Flow Before Triggering Cash Trap DSCR (1)Capacity for Decrease in Net Cash Flow Before Triggering Minimum DSCR (1)Issuer or BorrowerNotes/Securities IssuedConditions Limiting Distributions of Excess CashExcess Cash Distributed During the Three Months Ended March 31, 2019DSCR as of March 31, 2019Capacity for Decrease in Net Cash Flow Before Triggering Cash Trap DSCR (1)Capacity for Decrease in Net Cash Flow Before Triggering Minimum DSCR (1)
Cash Trap DSCRAmortization PeriodCash Trap DSCRAmortization Period
 (in millions) (in millions)(in millions) (in millions) (in millions)(in millions)
2015 SecuritizationGTP Acquisition PartnersAmerican Tower Secured Revenue Notes, Series 2015-1 and Series 2015-21.30x, Tested Quarterly (2)(3)(4)$51.18.35x$188.2$192.3GTP Acquisition PartnersAmerican Tower Secured Revenue Notes, Series 2015-1 and Series 2015-21.30x, Tested Quarterly (2)(3)(4)$60.79.33x$214.4$218.4
Trust SecuritizationsAMT Asset SubsSecured Tower Revenue Securities, Series 2013-2A, Secured Tower Revenue Securities, Series 2018-1, Subclass A and Secured Tower Revenue Securities, Series 2018-1, Subclass R1.30x, Tested Quarterly (2)(3)(5)$199.810.38x$542.3$551.3AMT Asset Subs
Secured Tower Revenue Securities, Series 2013-2A, Secured Tower Revenue Securities, Series 2018-1, Subclass A and Secured Tower Revenue Securities, Series 2018-1, Subclass R

1.30x, Tested Quarterly (2)(3)(5)$150.611.22x$592.4$601.4
_______________
(1)Based on the net cash flow of the applicable issuer or borrower as of March 31, 20182019 and the expenses payable over the next 12 months on the 2015 Notes or the Loan, as applicable.
(2)Once triggered, a Cash Trap DSCR condition continues to exist until the DSCR exceeds the Cash Trap DSCR for two consecutive calendar quarters. During a Cash Trap DSCR condition, all cash flow in excess of amounts required to make debt service payments, fund required reserves, pay management fees and budgeted operating expenses and make other payments required under the applicable transaction documents, referred to as excess cash flow, will be deposited into a reserve account (the “Cash Trap Reserve Account”) instead of being released to the applicable issuer or borrower. 
(3)An amortization period commences if the DSCR is equal to or below 1.15x (the “Minimum DSCR”) at the end of any calendar quarter and continues to exist until the DSCR exceeds the Minimum DSCR for two consecutive calendar quarters.
(4)No amortization period is triggered if the outstanding principal amount of a series has not been repaid in full on the applicable anticipated repayment date. However, in such event, additional interest will accrue on the unpaid principal balance of the applicable series, and such series will begin to amortize on a monthly basis from excess cash flow.
(5)An amortization period exists if the outstanding principal amount has not been paid in full on the applicable anticipated repayment date and continues to exist until such principal has been repaid in full.

A failure to meet the noted DSCR tests could prevent GTP Acquisition Partners or the AMT Asset Subs from distributing excess cash flow to us, which could affect our ability to fund our capital expenditures, including tower construction and acquisitions and meet REIT distribution requirements. During an “amortization period,” all excess cash


flow and any amounts then in the applicable Cash Trap Reserve Account would be applied to pay principal of the 2015 Notes or the Loan, as applicable, on each monthly payment date, and so would not be available for distribution to us. Further, additional interest will begin to accrue with respect to any series of the 2015 Notes or subclass of the Loan from and after the anticipated repayment date at a per annum rate determined in accordance with the applicable agreement. With respect to the 2015 Notes, upon the occurrence of, and during, an event of default, the applicable trustee may, in its discretion or at the direction of holders of more than 50% of the aggregate outstanding principal of any series of the 2015 Notes, declare such series of 2015 Notes immediately due and payable, in which case any excess cash flow would need to be used to pay holders of such notes. Furthermore, if GTP Acquisition Partners or the AMT Asset Subs were to default on a series of the 2015 Notes or the Loan, the applicable trustee may seek to foreclose upon or otherwise convert the ownership of all or any portion of the 3,5843,556 communications sites that secure the 2015 Notes or the 5,116 sitesbroadcast and wireless communications towers and related assets that secure the Loan, respectively, in which case we could lose such sites and the revenue associated with those assets.



As discussed above, we use our available liquidity and seek new sources of liquidity to fund capital expenditures, future growth and expansion initiatives, satisfy our distribution requirements and repay or repurchase our debt. If we determine that it is desirable or necessary to raise additional capital, we may be unable to do so, or such additional financing may be prohibitively expensive or restricted by the terms of our outstanding indebtedness. If we are unable to raise capital when our needs arise, we may not be able to fund capital expenditures, future growth and expansion initiatives, satisfy our REIT distribution requirements and debt service obligations, or refinance our existing indebtedness.
In addition, our liquidity depends on our ability to generate cash flow from operating activities. As set forth under the caption “Risk Factors” in Item 1A of the 20172018 Form 10-K, we derive a substantial portion of our revenues from a small number of tenants and, consequently, a failure by a significant tenant to perform its contractual obligations to us could adversely affect our cash flow and liquidity.
For more information regarding the terms of our outstanding indebtedness, please see note 8 to our consolidated financial statements included in the 20172018 Form 10-K.
Critical Accounting Policies and Estimates

Management’s discussion and analysis of financial condition and results of operations are based upon our consolidated and condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, as well as related disclosures of contingent assets and liabilities. We evaluate our policies and estimates on an ongoing basis, including those related to impairment of long-lived assets, asset retirement obligations, revenue recognition, rent expense, stock-based compensation, income taxes and accounting for business combinations and acquisitions of assets, which we discussed in the 20172018 Form 10-K. Management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

We have reviewed our policies and estimates to determine our critical accounting policies for the three months ended March 31, 2018.2019. As described in our 2018 Form 10-K and below, effective January 1, 2019, we adopted the new lease accounting guidance. We have made no other material changes to the critical accounting policies described in the 20172018 Form 10-K.

Effective January 1, 2019, we adopted the new lease standard using the modified retrospective method applied to lease arrangements that were in place on the transition date. The new lease accounting guidance required us to recognize a right-of-use lease asset and lease liability for operating and finance leases. The right-of-use asset is measured as the sum of the lease liability, prepaid or accrued lease payments, any initial direct costs incurred and any other applicable amounts.

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

During the quarterthree months ended March 31, 2018,2019, no potential goodwill impairment was identified as the fair value of each of our reporting units was in excess of its carrying amount. The fair value of our India reporting unit, which is based on the present value of forecasted future value cash flows (the income approach) exceeded the carrying value by approximately $156.5$327.8 million, or 4%8%. As a result of the telecommunications carrier consolidation occurring in the India market, including the impact of Aircel’s filing for bankruptcy protection, we lowered our discounted cash flow projections, which increases the sensitivity of these projections to changes in the key assumptions used in determining the fair value of the India reporting unit as of March 31, 2018. Key assumptions include future revenue growth rates and operating margins, capital expenditures, terminal period growth rate and the weighted-average cost of capital, which were determined considering historical data and current assumptions related to the impacts of the carrier consolidation.


For this reporting unit, we performed a sensitivity analysis on our significant assumptions as of December 31, 2018 and determined that a (i) a 7%6% reduction onof projected revenues, (ii) a 3558 basis point increase in the weighted-average cost of


capital or (iii) a 16%28% reduction in terminal sales growth rate, individually, each of which we determined to be reasonable, would impact our conclusion that the fair value of the India reporting unit exceeds its carrying value. There have been no material adverse changes to these sensitivities during the three months ended March 31, 2019. Events that could negatively affect our India reporting unitsunit’s financial results include increased customer attrition exceeding our forecast resulting from the ongoing carrier consolidation, carrier tenant bankruptcies and other factors set forth under the caption “Risk Factors” in Item 1A of the 20172018 Form 10-K.

The carrying value of goodwill in the India reporting unit was $1,073.1$1,054.6 million as of March 31, 2018,2019, which represents 19%19.0% of our consolidated balance of $5,647.1$5,538.2 million.
Accounting Standards Update
For a discussion of recent accounting standards updates, see note 1 to our consolidated and condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.



ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk
As of March 31, 2018,2019, we have one interest rate swap agreement related to debt in Colombia. This swap has been designated as a cash flow hedge, has a notional amount of $23.8$16.1 million, has an interest rate of 5.74% and expires in April 2021. We also have three interest rate swap agreements related to the 2.250% senior unsecured notes due 2022 (the “2.250% Notes”). These swaps have been designated as fair value hedges, have an aggregate notional amount of $600.0 million, have an interest rate of one-month LIBOR plus applicable spreads and expire in January 2022. In addition, we have three interest rate swap agreements related to a portion of the 3.000% senior unsecured notes due 2023 (the “3.000% Notes”). These swaps have been designated as fair value hedges, have an aggregate notional amount of $500.0 million and an interest rate of one-month LIBOR plus applicable spreads and expire in June 2023.
Changes in interest rates can cause interest charges to fluctuate on our variable rate debt. Variable rate debt as of March 31, 20182019 consisted of $600.0 million under the 2014 Credit Facility, $1,641.8 million$2.3 billion under the 2013 Credit Facility, $1.3 billion under the 2019 Term Loan, $1.0 billion under the 2013 Term Loan, $1.5 billion under the 2018 Term Loan, $600.0 million under the interest rate swap agreements related to the 2.250% Notes, $500.0 million under the interest rate swap agreements related to the 3.000% Notes, $67.6$35.1 million under the South African credit facility, $23.8$16.1 million under the Colombian credit facility after giving effect to our interest rate swap agreement $90.6 million under the BR Towers debentures and $35.3$22.7 million under the Brazil credit facility. A 10% increase in current interest rates would result in an additional $4.8$5.2 million of interest expense for the three months ended March 31, 2018.2019.

Foreign Currency Risk
We are exposed to market risk from changes in foreign currency exchange rates primarily in connection with our foreign subsidiaries and joint ventures internationally. Any transaction denominated in a currency other than the U.S. Dollar is reported in U.S. Dollars at the applicable exchange rate. All assets and liabilities are translated into U.S. Dollars at exchange rates in effect at the end of the applicable fiscal reporting period and all revenues and expenses are translated at average rates for the period. The cumulative translation effect is included in equity as a component of Accumulated other comprehensive loss. We may enter into additional foreign currency financial instruments in anticipation of future transactions to minimize the impact of foreign currency exchange rate fluctuations. For the three months ended March 31, 2018,2019, 44% of our revenues and 56%51% of our total operating expenses were denominated in foreign currencies.
As of March 31, 2018,2019, we have incurred intercompany debt that is not considered to be permanently reinvested and similar unaffiliated balances that were denominated in a currency other than the functional currency of the subsidiary in which it is recorded. As this debt had not been designated as being a long-term investment in nature, any changes in the foreign currency exchange rates will result in unrealized gains or losses, which will be included in our determination of net income. An adverse change of 10% in the underlying exchange rates of our unsettled intercompany debt and similar unaffiliated balances would result in $90.2$115.1 million of unrealized losses that would be included in Other expense in our consolidated statements of operations for the three months ended March 31, 2018.2019.

ITEM 4.CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
We have established disclosure controls and procedures designed to ensure that material information relating to us, including our consolidated subsidiaries, is made known to the officers who certify our financial reports and to other members of senior management and the Board of Directors.
Our management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act)Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our principal executive officer and principal financial officer concluded that these disclosure controls and procedures were effective as of March 31, 20182019 and designed to ensure that the information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the requisite time periods specified in the applicable rules and


forms, and that it is accumulated and


communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.


Changes in Internal Control over Financial Reporting
During the quarter ended March 31, 2019, we adopted the new lease accounting standard. We updated our lease policy and added additional controls over financial reporting by using a company-wide lease system to gather lessee information required for financial statement presentation, as well as to provide for the additional disclosure information required by the new standard.
There have been no other changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the fiscal quarter ended March 31, 20182019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



PART II. OTHER INFORMATION
ITEM 1.LEGAL PROCEEDINGS

We periodically become involved in various claims and lawsuits that are incidental to our business. In the opinion of management, after consultation with counsel, there are no matters currently pending that would, in the event of an adverse outcome, have a material impact on our consolidated financial position, results of operations or liquidity.
ITEM 1A.RISK FACTORS

There were no material changes to the risk factors discussed in Item 1A of the 20172018 Form 10-K.



ITEM 6.EXHIBITS
Exhibit No.  Description of Document
   
3.1
Restated Certificate of Incorporation of the Company as filed with the Secretary of State of the State of Delaware, effective as of December 31, 2011 (filed as exhibit 3.1 to the Company’s Current Report on Form 8-K filed on January 3, 2012, and incorporated herein by reference)
3.2
Certificate of Merger, effective as of December 31, 2011 (filed as exhibit 3.2 to the Company’s Current Report on Form 8-K filed on January 3, 2012, and incorporated herein by reference)
3.3
Amended and Restated By-Laws of the Company, effective as of February 12, 2016 (filed as exhibit 3.1 to the Company’s Current Report on Form 8-K filed on February 16, 2016, and incorporated herein by reference)
4.1
Supplemental Indenture No. 11, dated as of March 15, 2019, by and between American Tower Corporation and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K on March 15, 2019, and incorporated herein by reference)
10.1
Form of Restricted Stock Unit Agreement (U.S. Employee/ Non-Employee Director) (For grants made beginning March 1, 2019) Pursuant to the American Tower Corporation 2007 Equity Incentive Plan, as amended (filed as Exhibit 10.10 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “Form 10-K”) on February 27, 2019, and incorporated herein by reference)
10.2
Form of Restricted Stock Unit Agreement (Non-U.S. Employee) (For grants made beginning March 1, 2019) Pursuant to the American Tower Corporation 2007 Equity Incentive Plan, as amended (filed as Exhibit 10.11 to the Form 10-K on February 27, 2019, and incorporated herein by reference)
10.3
Form of Notice of Grant of Performance-Based Restricted Stock Units Agreement (U.S. Employee) (For grants made beginning 2019) Pursuant to the American Tower Corporation 2007 Equity Incentive Plan, as amended (filed as Exhibit 10.14 to the Form 10-K on February 27, 2019, and incorporated herein by reference)
10.4 
Term Loan Agreement, dated March 29, 2018,February 14, 2019, among the Company, as borrower, Mizuho Bank, Ltd., as administrative agent, joint lead arranger and joint bookrunner, RoyalThe Bank of CanadaNova Scotia and TD Securities (USA) LLC, as co-syndication agents, and RBC Capital Markets and TD Securities (USA) LLC as joint lead arrangers and joint bookrunners (filed as Exhibit 10.59 to the Form 10-K on February 27, 2019, and incorporated herein by reference)
 
10.2
Second Amended and Restated Loan and Security Agreement, dated as of March 29, 2018, by and between American Tower Asset Sub, LLC and American Tower Asset Sub II, LLC, as Borrowers, and U.S. Bank National Association, as Trustee for American Tower Trust I, as Lender

10.3
Second Amended and Restated Trust and Servicing Agreement, dated as of March 29, 2018, by and among American Tower Depositor Sub, LLC, as Depositor, Midland Loan Services, a Division of PNC Bank, National Association, successor to The Bank of New York Mellon, as Servicer, and U.S. Bank National Association, as Trustee
10.4
Second Amended and Restated Cash Management Agreement, dated as of March 29, 2018, by and among American Tower Asset Sub, LLC and American Tower Asset Sub II, LLC, as Borrowers, U.S. Bank National Association, as Trustee for American Tower Trust I Secured Tower Revenue Securities, as Lender, Midland Loan Services, a Division of PNC Bank, National Association, as Servicer, U.S. Bank National Association, as Agent, and SpectraSite Communications, LLC, as Manager
10.5
Amended and Restated Letter Agreement, dated April 12, 2018, by and between the Company and William H. Hess

12
Statement Regarding Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
  
31.1  
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
31.2  
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
32  
Certifications filed pursuant to 18. U.S.C. Section 1350
   
101.INS  XBRL Instance Document
  
101.SCH  XBRL Taxonomy Extension Schema Document
  
101.CAL  XBRL Taxonomy Extension Calculation Linkbase Document
  
101.LAB  XBRL Taxonomy Extension Label Linkbase Document
  
101.PRE  XBRL Taxonomy Extension Presentation Linkbase Document
  
101.DEF  XBRL Taxonomy Extension Definition



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
AMERICAN TOWER CORPORATION
    
  Date: May 1, 20183, 2019By:
/S/   THOMAS A. BARTLETT   
    
Thomas A. Bartlett
Executive Vice President and Chief Financial Officer and Treasurer
(Duly Authorized Officer and Principal Financial Officer)



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