UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q



☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, ~~2019~~2020



☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period to

Commission File Number 333-187970

CC HOLDINGS GS V LLC

(Exact name of registrant as specified in its charter)



Delaware		20-4300339
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1220 Augusta Drive, Suite 600, Houston, Texas 77057-2261

(Address of principal executives office) (Zip Code)

(713) 570-3000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None.



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A	N/A	N/A

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

Explanatory Note: The registrant is a voluntary filer and not subject to the filing requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934; however, the registrant has filed all reports that would have been required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months had the registrant been subject to such filing requirements.

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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.

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

As of September 30, ~~2019,~~2020, the only member of the registrant is a wholly-owned indirect subsidiary of Crown Castle International Corp.

The registrant is a wholly-owned indirect subsidiary of Crown Castle International Corp. and meets the conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q, and is therefore filing this form with the reduced disclosure format.

CC HOLDINGS GS V LLC

INDEX



		Page
PART I—FINANCIAL INFORMATION		23
ITEM 1.	FINANCIAL STATEMENTS	23
	CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)	23
	CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)	34
	CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)	45
	CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN MEMBER'S EQUITY (Unaudited)	56
	NOTES TO CONDENSED CONSOLIDATED FINANCIAL ~~STATEMENTS—Unaudited~~ STATEMENTS (Unaudited)	67
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	13
ITEM 4.	CONTROLS AND PROCEDURES	1819
PART II—OTHER INFORMATION		1921
ITEM 1.	LEGAL PROCEEDINGS	1921
ITEM 1A.	RISK FACTORS	1921
ITEM 6.	EXHIBITS	1921
EXHIBIT INDEX		1921
SIGNATURES		2022

Cautionary Language Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q ("Form 10-Q") contains forward-looking statements that are based on our management's expectations as of the filing date of this report with the Securities and Exchange Commission ("SEC"). Statements that are not historical facts are hereby identified as forward-looking statements. In addition, words such as "estimate," "anticipate," "project," "plan," "intend," "believe," "expect," "likely," "predicted," "positioned," "continue," "target," and any ~~variation~~variations of these words, and similar expressions are intended to identify forward-looking statements. Such statements include plans, projections and estimates contained in "Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of ~~Operations"~~ Operations,"~~("MD&A") and~~ "Part I—Item 4. Controls and Procedures" and "Part II—Item 1A. Risk Factors" herein. Such forward-looking statements include (1) ~~expectations regarding~~ anticipated growth in the wireless industry and demand for wireless data, (2) ~~expectations regarding~~ wireless carriers' focus on improving network quality and expanding capacity, (3) ~~expectations regarding tenant leasing and non-renewals of tenant contracts, (4) expectations regarding~~ demand for our ~~communications infrastructure,~~towers, including factors driving such demand, and the potential benefits that may be derived therefrom, ~~(5) expectations regarding~~(4) availability and adequacy of cash flows and liquidity, ~~for, or plans regarding, capital expenditures,~~(5) value which may be derived from our allocation of cash generated from our business, (6) debt maturities, (7) income taxes, (8) the potential impact of novel coronavirus ("COVID-19") pandemic, (9) the potential effects of the restatement of our previously issued consolidated financial statements, including the Historical Adjustments related thereto, and (10) expectations regarding our ~~capital structure, debt maturities, our availability and cost of capital, and capital allocation, (7) expectations~~remediation efforts related to ~~the ability of Crown Castle International Corp. ("CCIC" or "Crown Castle") to remain qualified as~~ a ~~real estate investment trust ("REIT") and the advantages, benefits or impact of, or opportunities created by the inclusion of~~material weakness in our assets and operations in CCIC's REIT, (8) the utilization of our net operating loss carryforwards ("NOLs") and (9) expectations related to the impact of customer consolidation or ownership changes, including the impact of the potential combination of T-Mobile and Sprint.internal control over financial reporting.

Such forward-looking statements should, therefore, be considered in light of various risks, uncertainties and assumptions, including prevailing market conditions, risk factors described in "Part II—Item 1A. Risk Factors" herein and "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2018~~2019 ("~~2018~~2019 Form 10-K") and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. ~~As used herein, the term "including," and any variation thereof, means "including without limitation." The use of the word "or" herein is not exclusive.~~

Our filings with the SEC are available through the SEC website at www.sec.gov or through ~~CCIC’s~~CCIC's investor relations website at investor.crowncastle.com. CCIC uses its investor relations website to disclose information about CCIC and us that may be deemed to be material. We encourage investors, the media and others interested ~~in us~~ to visit ~~CCIC’s~~CCIC's investor relations website from time to time to review up-to-date information or to sign up for e-mail alerts to be notified when new or updated information is posted on the site.

Interpretation

As used herein, the term "including," and any variation thereof, means "including without limitation." The use of the word "or" herein is not exclusive. Unless this Form 10-Q indicates otherwise or the context otherwise requires, the terms, "we," "our," or "us" as used in this Form 10-Q refer to CC Holdings GS V LLC ("CCL") and its consolidated wholly owned subsidiaries (collectively, "Company"). The Company is a wholly owned subsidiary of Global Signal Operating Partnership, L.P. ("GSOP"), which is an indirect subsidiary of CCIC. Capitalized terms used but not defined in this Form 10-Q have the same meaning given to them in the 2019 Form 10-K.

Explanatory Note

As previously disclosed in the Explanatory Note of the 2019 Form 10-K, we restated our audited consolidated financial statements for the years ended December 31, 2018 and 2017, and quarterly unaudited financial information for the quarterly and year-to-date periods in the year ended December 31, 2018 and first three quarters for the year ended December 31, 2019. Accordingly, the condensed consolidated financial statements as of and for the three and nine months ended September 30, 2019 included in this Form 10-Q have been restated to reflect the Historical Adjustments described in the 2019 Form 10-K. See also note 2 to our condensed consolidated financial statements for further information on the impact of the Historical Adjustments on the condensed consolidated financial statements as of and for the three and nine months ended September 30, 2019.

PART I—FINANCIAL INFORMATION


ITEM 1.	FINANCIAL STATEMENTS

CC HOLDINGS GS V LLC

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)

(In thousands of dollars)


	September 30, 2019		December 31, 2018		September 30, 2020		December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	18,486	$	18,707	$	31,565	$	20,407
Receivables, net	2,348		4,327		4,061		3,620
Prepaid expenses^(a)	14,883		23,155		17,135		12,714		^(a)
Deferred site rental receivables and other current assets	28,413		27,014		36,659		30,207		^(a)
Total current assets	64,130		73,203		89,420		66,948
Deferred site rental receivables	352,984		343,740		349,932		354,075
Property and equipment, net of accumulated depreciation of $1,081,133 and $1,011,900, respectively	1,015,632		1,017,767
Property and equipment, net of accumulated depreciation of $1,174,449 and $1,095,355, respectively					972,323		1,010,367
Operating lease right-of-use assets^(a)	1,135,264		—		1,163,109		1,150,476
Goodwill	1,338,730		1,338,730		1,338,730		1,338,730
Other intangible assets, net^(a)	707,376		808,327		593,694		678,956
Long-term prepaid rent and other assets, net^(a)	1,878		39,669		1,749		1,905
Total assets	$	4,615,994	$	3,621,436	$	4,508,957	$	4,601,457

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	2,164	$	1,933	$	1,696	$	2,652
Accrued interest	17,748		8,126		17,748		8,126
Deferred revenues(b)	13,390		12,533		87,503		70,217
Other accrued liabilities^(a)	7,484		8,866		5,371		6,146
Current portion of operating lease liabilities—third parties^(a)	38,176		—		37,790		37,164
Current portion of operating lease liabilities—related parties^(a)	16,397		—		23,175		20,417
Total current liabilities	95,359		31,458		173,283		144,722
Debt	995,085		994,047		996,469		995,431
Operating lease liabilities—third parties^(a)	827,253		—		848,407		845,960
Operating lease liabilities—related parties^(a)	319,472		—		323,219		314,920
Deferred ground lease payable^(a)	—		112,832
Other liabilities^(a)	35,618		50,108
Other long-term liabilities^(b)					194,620		203,470
Total liabilities	2,272,787		1,188,445		2,535,998		2,504,503
Commitments and contingencies (note 7)
Commitments and contingencies (note 8)
Member's equity:
Member's equity	2,343,207		2,432,991		1,972,959		2,096,954
Accumulated earnings (deficit)	—		—		0		0
Total member's equity	2,343,207		2,432,991		1,972,959		2,096,954
Total liabilities and equity	$	4,615,994	$	3,621,436	$	4,508,957	$	4,601,457


(a)	~~See~~ ~~"Recently Adopted Accounting Pronouncements"~~ Reflects the correction of certain immaterial prior period misclassifications of the reported balances in ~~note 2 to~~"Prepaid expenses" and "Deferred site rental receivables and other current assets" on the condensed consolidated ~~financial statements for a discussion~~balance sheet as of December 31, 2019.


(b)	Reflects the ~~recently adopted lease standard.~~recording of deferred revenues in connection with the tower installation and modification transactions described in note 5 that result in permanent improvements to the Company's towers. The Company receives no cash from, and is not party to, such transactions.

See notes to condensed consolidated financial statements.

CC HOLDINGS GS V LLC

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)

(In thousands of dollars)


	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018			2020			2019			2020			2019
Site rental revenues	$	171,745		$	165,108		$	507,256		$	492,158
																(As Restated)						(As Restated)
Site rental revenues:
Revenues from tenant contracts													$	173,348		$	171,745		$	517,041		$	507,256
Amortization of tower installations and modifications^(a)													14,818			13,436			43,639			38,371
Total site rental revenues													188,166			185,181			560,680			545,627

Operating expenses:
Site rental cost of operations—third parties^(a)	38,406			37,616			114,212			112,469
Site rental cost of operations—related parties^(a)	10,880			10,163			32,210			30,478
Site rental cost of operations—total^(a)	49,286			47,779			146,422			142,947
Site rental cost of operations—third parties^(b)													38,640			38,406			115,156			114,212
Ground rent expenses—related parties													11,446			10,880			34,235			32,210
Site rental cost of operations—total^(b)													50,086			49,286			149,391			146,422
Management fee—related party	12,611			12,207			37,238			36,227			13,084			12,611			38,596			37,238
Asset write-down charges	—			—			375			344			0			0			424			375
Depreciation, amortization and accretion	52,665			52,333			157,436			157,765			53,048			51,881			158,138			155,087
Total operating expenses	114,562			112,319			341,471			337,283			116,218			113,778			346,549			339,122
Operating income (loss)	57,183			52,789			165,785			154,875			71,948			71,403			214,131			206,505
Interest expense and amortization of deferred financing costs	(9,969		)	(9,969		)	(29,906		)	(29,906		)	(9,969		)	(9,969		)	(29,906		)	(29,906		)
Other income (expense)	160			90			445			63			(12		)	160			74			445
Income (loss) before income taxes	47,374			42,910			136,324			125,032			61,967			61,594			184,299			177,044
Benefit (provision) for income taxes	(102		)	(93		)	(307		)	(279		)	(80		)	(102		)	(292		)	(307		)
Net income (loss)	$	47,272		$	42,817		$	136,017		$	124,753		$	61,887		$	61,492		$	184,007		$	176,737


(a)	Represents the amortization of deferred revenues recorded in connection with the tower installation and modification transactions described in note 5 that result in permanent improvements to the Company's towers. The Company receives no cash from, and is not party to, such transactions.


(b)	Exclusive of depreciation, amortization and accretion shown separately and certain indirect costs included in the management fee.

See notes to condensed consolidated financial statements.

CC HOLDINGS GS V LLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

(In thousands of dollars)


	Nine Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2020			2019
Cash flows from operating activities:
										(As Restated)
Cash flows from operating activities:^(a)
Net income (loss)	$	136,017		$	124,753		$	184,007		$	176,737
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and accretion	157,436			157,765			158,138			155,087
Amortization of deferred financing costs	1,038			1,038			1,038			1,038
Asset write-down charges	375			344			424			375
Changes in assets and liabilities:
Increase (decrease) in accrued interest	9,622			9,622			9,622			9,622
Increase (decrease) in accounts payable	(3,844		)	500			1,802			(3,844		)
Increase (decrease) in other liabilities	1,617			3,009			6,800			15,477
Decrease (increase) in receivables	1,978			(158		)	(441		)	1,978
Decrease (increase) in other assets	(14,256		)	(12,505		)	(5,051		)	(14,256		)
Net cash provided by (used for) operating activities	289,983			284,368			356,339			342,214
Cash flows from investing activities:
Capital expenditures	(64,403		)	(52,187		)
Capital expenditures^(b)							(37,179		)	(64,204		)
Net cash provided by (used for) investing activities	(64,403		)	(52,187		)	(37,179		)	(64,204		)
Cash flows from financing activities:
Distributions to member	(225,801		)	(238,716		)	(308,002		)	(278,231		)
Net cash provided by (used for) financing activities	(225,801		)	(238,716		)	(308,002		)	(278,231		)
Net increase (decrease) in cash and cash equivalents	(221		)	(6,535		)	11,158			(221		)
Cash and cash equivalents at beginning of period	18,707			30,771			20,407			18,707
Cash and cash equivalents at end of period	$	18,486		$	24,236		$	31,565		$	18,486


(a)	The Company receives no cash from, and is not party to, the tower installation and modification transactions described in note 5. Such transactions, however, are reflected on the cash flow statement for GAAP purposes as if an amount equal to the lease component for such transactions had been received by the Company, and, as such, the amounts have been recorded as deferred revenues.


(b)	Includes permanent improvements recorded in connection with the tower installation and modification transactions described in note 5. The Company receives no cash from, and is not party to, such transactions.

See notes to condensed consolidated financial statements.

CC HOLDINGS GS V LLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN MEMBER'S EQUITY (Unaudited)

(In thousands of dollars)

Member's Equity
Accumulated
Earnings (Deficit)
Total
Balance, July 1, 2019 $ 2,377,756
$ —
$ 2,377,756
Distributions to member (note 4) (34,549 ) (47,272 ) (81,821 )
Net income (loss) —
47,272
47,272
Balance, September 30, 2019 $ 2,343,207
$ —
$ 2,343,207

Member's Equity
Accumulated
Earnings (Deficit)
Total
Balance, July 1, 2018 $ 2,498,784
$ —
$ 2,498,784
Distributions to member (note 4) (36,276 ) (42,817 ) (79,093 )
Net income (loss) —
42,817
42,817
Balance, September 30, 2018 $ 2,462,508
$ —
$ 2,462,508



	Member's Equity			Accumulated Earnings (Deficit)			Total
Balance, July 1, 2020	$	2,022,376		$	0		$	2,022,376
Distributions to member^(a)	(49,417		)	(61,887		)	(111,304		)
Net income (loss)	0			61,887			61,887
Balance, September 30, 2020	$	1,972,959		$	0		$	1,972,959

	Member's Equity			Accumulated Earnings (Deficit)			Total
Balance, July 1, 2019 (as restated)	$	2,156,857		$	0		$	2,156,857
Distributions to member (as restated)^(a)	(39,153		)	(61,492		)	(100,645		)
Net income (loss) (as restated)	0			61,492			61,492
Balance, September 30, 2019 (as restated)	$	2,117,704		$	0		$	2,117,704

	Member's Equity			Accumulated Earnings (Deficit)			Total
Balance, January 1, 2020	$	2,096,954		$	0		$	2,096,954
Distributions to member^(a)	(123,995		)	(184,007		)	(308,002		)
Net income (loss)				184,007			184,007
Balance, September 30, 2020	$	1,972,959		$	0		$	1,972,959

	Member's Equity			Accumulated Earnings (Deficit)			Total
Balance, January 1, 2019 (as restated)	$	2,219,198		$	0		$	2,219,198
Distributions to member (as restated)^(a)	(101,494		)	(176,737		)	(278,231		)
Net income (loss) (as restated)	0			176,737			176,737
Balance, September 30, 2019 (as restated)	$	2,117,704		$	0		$	2,117,704

Member's Equity
Accumulated
Earnings (Deficit)
Total
Balance, January 1, 2019 $ 2,432,991
$ —
$ 2,432,991
Distributions to member (note 4) (89,784 ) (136,017 ) (225,801 )
Net income (loss) —
136,017
136,017
Balance, September 30, 2019 $ 2,343,207
$ —
$ 2,343,207

Member's Equity
Accumulated
Earnings (Deficit)
Total
Balance, January 1, 2018 $ 2,576,471
$ —
$ 2,576,471
Distributions to member (note 4) (113,963 ) (124,753 ) (238,716 )
Net income (loss) —
124,753
124,753
Balance, September 30, 2018 $ 2,462,508
$ —
$ 2,462,508


(a)	See note 5. The Company receives no cash from, and is not party to, the tower installation and modification transactions described in note 5.

See notes to condensed consolidated financial statements.

CC HOLDINGS GS V LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL ~~STATEMENTS-Unaudited~~STATEMENTS (Unaudited)

(Tabular dollars in thousands)


1.	General

The accompanying consolidated financial statements reflect the consolidated financial position, results of operations and cash flows of CC Holdings GS V LLC ("CCL") and its consolidated wholly-owned subsidiaries (collectively, "Company"). The Company is a wholly-owned subsidiary of Global Signal Operating Partnership, L.P. ("GSOP"), which is an indirect subsidiary of Crown Castle International Corp., a Delaware corporation ("CCIC" ~~or "Crown Castle"~~). CCL is a Delaware limited liability company that is a holding company and an issuer of the Company's debt. Intercompany accounts, transactions and profits have been eliminated. As used herein, the term "including," and any variation thereof means "including without limitation." The use of the word "or" herein is not exclusive.

The information contained in the following notes to the condensed consolidated financial statements is condensed from that which would appear in the annual consolidated financial statements; accordingly, the consolidated financial statements included herein should be reviewed in conjunction with the consolidated financial statements for the fiscal year ended December 31, ~~2018,~~2019, and related notes thereto, included in the ~~2018~~2019 Form 10-K filed by the Company with the SEC.

The Company is organized specifically to own, ~~lease~~operate, and ~~manage~~lease towers and other structures (collectively, "towers"), and to a lesser extent, interests in land under third party and related party towers in various forms ("land interests") (collectively, ~~"communications infrastructure" or~~ "sites") that are geographically dispersed across the U.S. The Company's core business is providing access, including space or capacity, to its sites via long-term contracts in various forms, including lease, license and sublease agreements (collectively, ~~"contracts"~~"tenant contracts"). The Company's customers on its ~~communications infrastructure~~sites are referred to herein as "tenants." Management services related to the Company's sites are performed by Crown Castle USA Inc. ("CCUSA"), an affiliate of the Company, under the Management Agreement, as the Company has no employees.

Approximately 68% of the Company's sites are leased or subleased or operated and managed for an initial period of 32 years (through May 2037) under master leases or other agreements assumed by T-Mobile following its merger with Sprint completed April 1, 2020 ("~~Sprint~~T-Mobile Sites"). CCIC, through its subsidiaries (including the Company), has the option to purchase in 2037 all (but not less than all) of the ~~Sprint~~T-Mobile Sites from ~~Sprint~~T-Mobile for approximately $2.3 billion. CCIC has no obligation to exercise the purchase option.

For U.S federal income tax purposes, CCIC operates as a real estate investment trust ("REIT"), and as its indirect subsidiary, the Company's assets and operations are included in the CCIC REIT. See note 5.6.

Basis of Presentation

The condensed consolidated financial statements included herein are unaudited; however, they include all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to state fairly the consolidated financial position of the Company at September 30, ~~2019~~,2020, the condensed consolidated results of operations for ~~both~~ the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 and the condensed consolidated cash flows for the nine months ended September 30, ~~2019~~2020 and ~~2018.~~2019. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the U.S. ("GAAP"). The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.


2.	Restatement of Previously Issued Condensed Consolidated Financial Statements

The tables below summarize the impact of the Restatement Adjustments that were related to the timing of revenue recognition on CCIC's tower installation services. Specifically, CCIC determined that its historical practice of recognizing the full transaction price as services revenues upon completion of an installation was not acceptable under GAAP. Instead, a portion of the transaction price for CCIC's tower installation services, specifically the amounts associated with permanent improvements recorded as fixed assets, represent a lease component and should be recognized by CCIC as site rental revenues on a ratable basis over the associated estimated lease term.

CCIC, through its wholly owned subsidiary, offers certain installation and other construction-related services to tenants on the towers owned by CCIC's subsidiaries (including to tenants on the Company's towers). That business is separate from the

CC HOLDINGS GS V LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL ~~STATEMENTS-Unaudited~~STATEMENTS (Unaudited)

(Tabular dollars in thousands)


2.	~~Summary~~ operations of ~~Significant Accounting Policies~~

~~Recently Adopted Accounting Pronouncements~~

~~Lease Accounting — Summary of Adoption Impact.~~ ~~Effective January 1, 2019,~~ the Company, ~~adopted new guidance~~and the Company (1) is not party to such transactions and (2) does not receive any cash from such transactions. However, when CCIC is engaged by, and performs an installation or other activity for, a tenant that is locating or located on the ~~recognition, measurement, presentation~~Company's towers, and ~~disclosure~~such transaction results in (1) enhancing a tower in connection with a new tenant installing equipment on the tower for the first time or as part of ~~leases (commonly referred~~subsequent equipment augmentations or (2) modifying the structure of a tower to accommodate the additional tenant, the Company records any permanent improvement that is made on its tower site as ~~"ASC 842" or~~a fixed asset. Historically, in connection with recording such permanent improvements as fixed assets on its financial statements, the ~~"new lease standard").~~Company would also record a corresponding amount as a capital contribution from CCIC.

The ~~new~~Company determined that, despite the Company not receiving any cash, an amount equal to the lease ~~standard requires lessees to recognize~~component as a ~~lease liability, initially measured at~~result of such installation and other construction-related services should be recorded on the ~~present value~~consolidated financial statements as deferred revenue, and then amortized as revenues on a ratable basis over the length of the tenants’ associated estimated lease ~~payments for all leases, and a corresponding right-of-use ("ROU") asset. The~~term.

In addition to the determination discussed above, the Company has also determined that errors existed related to its accounting for ~~lessors remained largely unchanged from previous guidance.~~

~~Due~~obligations to perform asset retirement activities pursuant to its ground lease and easement agreements. Specifically, the Company should not have recorded asset retirement obligations for its T-Mobile Sites, as the associated estimated retirement would occur beyond the period for which the Company has a contract term to these sites. The correction of the errors related to the ~~recognition~~Company's accounting for obligations to perform asset retirement activities resulted in (1) a decrease to both "Property and equipment, net" and "Member's equity" of ~~the lease liability and a corresponding ROU asset, the new lease standard had a material impact~~$4.1 million on the Company's condensed consolidated balance ~~sheet. Additionally, certain amounts related~~sheet as of September 30, 2019, and (2) a decrease to ~~our lessee arrangements that were previously reported separately have been de-recognized~~"Depreciation, amortization, and reclassified into "Operating lease right-of-use assets" on the Company's condensed consolidated balance sheet. These amounts include (1) the Company's liability related to straight-line expense formerly referred to as "Deferred ground lease payable" and previously included in "Other accrued liabilities" and "Other liabilities," (2) prepaid rent expense previously included in "Prepaid expenses" and "Long-term prepaid rent and other assets, net," (3) below market leases previously included in "Other intangible assets, net," and (4) above market leases previously included in "Other liabilities."

~~Notwithstanding the material impact to the Company's condensed consolidated balance sheet, the Company's adoption of the new lease standard did not have a material impact~~accretion" on the Company's condensed consolidated statement of operations ~~or statement~~ of ~~cash flows. Additionally,~~$0.7 million and $2.2 million for the ~~adoption~~three and nine months ended September 30, 2019, respectively.

The Restatement Adjustments in the tables below reflect the impact of ~~this guidance had no impact~~(1) allocating an amount equal to the lease component as a result of such installation and other construction-related services on the ~~Company's operating practices, cash flows, contractual arrangements, or debt agreements (including compliance with any applicable covenants).~~

~~Lease Accounting~~—~~General.~~ ~~The Company adopted~~condensed consolidated financial statements as deferred revenue, and then amortizing those amounts as amortization of tower installations and modifications on a ratable basis over the ~~new lease standard using a modified retrospective approach as~~length of the ~~effective date (i.e., January 1, 2019), without adjusting the comparative periods. The Company's adoption of the new~~tenants’ associated estimated lease ~~standard did not result in a cumulative-effect adjustment being recognized~~term and (2) correcting errors related to the ~~opening balance of retained earnings. The new lease standard provides a package of practical expedients, whereby companies can elect not~~Company's accounting for obligations to reassess (1) whether existing contracts contain leases under the new definition of a lease, (2) lease classification for expired or existing leases and (3) whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. The Company elected the package of practical expedients upon adoption.perform asset retirement activities.

The Company evaluates whether a contract meets the definition of a lease whenever a contract grants a party with the right to control the use of an identified asset for a period of time in exchange for consideration. To the extent the identified asset is able to be shared among multiple parties,In addition, the Company has ~~determined~~also made other adjustments to the financial statements referenced above to correct errors that ~~one party does~~were not ~~have control~~material to its condensed consolidated financial statements. Such immaterial adjustments are related to a revision in the presentation of certain tower installation activities from a gross basis to a net basis, including the associated removal of certain amounts historically categorized as capital expenditures.

In addition to the restatement of the ~~identified asset and~~condensed consolidated financial statements, certain historical information in the ~~contract is not considered a lease.~~

~~Lease Accounting~~—~~Lessee.~~ ~~The Company's lessee arrangements primarily consist of ground leases for land under towers. Ground leases for land are specific~~notes to ~~each site, generally contain an initial term of five~~the condensed consolidated financial statements have been restated to ~~10 years and are renewable (and cancelable after a notice period) at~~reflect the ~~Company's option. The Company also enters into term easements and ground leases in which it prepays the entire term.~~

~~The majority~~impact of the Company's lease agreements have certain termination rights that provide for cancellation after a notice period and multiple renewal options at the Company's option. The Company includes renewal option periods in its calculation of the estimated lease term when it determines that the options are reasonably certain to be exercised. When such renewal options are deemed to be reasonably certain, the estimated lease term determined under ASC 842 will be greater than the non-cancelable term of the contractual arrangement. Although certain renewal periods are included in the estimated lease term, the Company would have the ability to terminate or elect to not renew a particular lease if business conditions warrant such a decision.Historical Adjustments.

The Company classifies its lessee arrangements at inception as either operating leases or finance leases. A lease is classified as a finance lease if at least one of the following criteria is met: (1) the lease transfers ownership of the underlying asset to the lessee, (2) the lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise, (3) the lease term is for a major part of the remaining economic life of the underlying asset, (4) the present value of the sum of the lease payments equals or exceeds substantially all of the fair value of the underlying asset, or (5) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. A lease is classified as an operating lease if none of the five criteria described above for finance lease classification is met.Condensed Consolidated Balance Sheet



	September 30, 2019
	As Reported		Restatement Adjustments			Other Adjustments			As Restated
ASSETS
Property and equipment, net	$	1,015,632	$	(4,140	)	$	(2,790	)	$	1,008,702
Total assets	4,615,994		(4,140		)	(2,790		)	4,609,064
LIABILITIES AND EQUITY
Current liabilities:
Deferred revenues^(a)	13,390		53,543			0			66,933
Total current liabilities	95,359		53,543			0			148,902
Other long-term liabilities^(a)	35,618		165,030			0			200,648
Total liabilities	2,272,787		218,573			0			2,491,360
Member's equity:
Member's equity	2,343,207		(222,713		)	(2,790		)	2,117,704
Total member's equity	2,343,207		(222,713		)	(2,790		)	2,117,704
Total liabilities and equity	$	4,615,994	$	(4,140	)	$	(2,790	)	$	4,609,064


(a)	Reflects the recording of deferred revenues in connection with the tower installation and modification transactions described in note 5 that result in permanent improvements to the Company's towers. The Company receives no cash from, and is not party to, such transactions.

CC HOLDINGS GS V LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL ~~STATEMENTS-Unaudited~~STATEMENTS (Unaudited)

(Tabular dollars in thousands)

~~ROU assets associated with operating leases are included~~Condensed Consolidated Statement of Operations



	Three Months Ended September 30, 2019
	As Reported		Restatement Adjustments			Other Adjustments			As Restated
Site rental revenues:
Revenues from tenant contracts	$	171,745	$	0		$	0		$	171,745
Amortization of tower installations and modifications^(a)	0		13,436			0			13,436
Total site rental revenues	171,745		13,436			0			185,181
Operating expenses:
Depreciation, amortization and accretion	52,665		(736		)	(48		)	51,881
Total operating expenses	114,562		(736		)	(48		)	113,778
Operating income (loss)	57,183		14,172			48			71,403
Income (loss) before income taxes	47,374		14,172			48			61,594
Net income (loss)	$	47,272	$	14,172		$	48		$	61,492



	Nine Months Ended September 30, 2019
	As Reported		Restatement Adjustments			Other Adjustments			As Restated
Site rental revenues:
Revenues from tenant contracts	$	507,256	$	0		$	0		$	507,256
Amortization of tower installations and modifications^(a)	0		38,371			0			38,371
Total site rental revenues	507,256		38,371			0			545,627
Operating expenses:
Depreciation, amortization and accretion	157,436		(2,208		)	(141		)	155,087
Total operating expenses	341,471		(2,208		)	(141		)	339,122
Operating income (loss)	165,785		40,579			141			206,505
Income (loss) before income taxes	136,324		40,579			141			177,044
Net income (loss)	$	136,017	$	40,579		$	141		$	176,737


(a)	Represents the amortization of deferred revenues recorded in connection with the tower installation and modification transactions described in note 5 that result in permanent improvements to the Company's towers. The Company receives no cash from, and is not party to, such transactions.

CC HOLDINGS GS V LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(Tabular dollars in ~~"Operating lease right-of-use assets"~~thousands)

Condensed Consolidated Statement of Cash Flows



	Nine Months Ended September 30, 2019
	As Reported			Restatement Adjustments			Other Adjustments			As Restated
Cash flows from operating activities:^(a)
Net income (loss)	$	136,017		$	40,579		$	141		$	176,737
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and accretion	157,436			(2,208		)	(141		)	155,087
Changes in assets and liabilities:
Increase (decrease) in other liabilities	1,617			13,860			0			15,477
Net cash provided by (used for) operating activities	289,983			52,231			0			342,214
Cash flows from investing activities:
Capital expenditures^(b)	(64,403		)	0			199			(64,204		)
Net cash provided by (used for) investing activities	(64,403		)	0			199			(64,204		)
Cash flows from financing activities:
Distributions to member	(225,801		)	(52,231		)	(199		)	(278,231		)
Net cash provided by (used for) financing activities	(225,801		)	(52,231		)	(199		)	(278,231		)
Net increase (decrease) in cash and cash equivalents	(221		)	0			0			(221		)
Cash and cash equivalents at beginning of year	18,707			0			0			18,707
Cash and cash equivalents at end of year	$	18,486		$	0		$	0		$	18,486


(a)	The Company receives no cash from, and is not party to, the tower installation and modification transactions described in note 5. Such transactions, however, are reflected on the cash flow statement for GAAP purposes as if an amount equal to the lease component for such transactions had been received by the Company, and, as such, the amounts have been recorded as deferred revenues.


(b)	Includes permanent improvements recorded in connection with the tower installation and modification transactions described in note 5. The Company receives no cash from, and is not party to, such transactions.


3.	Summary of Significant Accounting Policies

Recently Adopted Accounting Pronouncements

No accounting pronouncements adopted during the nine months ended September 30, 2020 had a material impact on the Company's condensed consolidated ~~balance sheet. Current and long-term portions of lease liabilities related to operating leases are included in "Current portion of operating lease liabilities~~—~~third parties," "Current portion of operating lease liabilities~~—~~related parties," "Operating lease liabilities~~—~~third parties" and "Operating lease liabilities~~—related parties" on the Company's condensed consolidated balance sheet. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's present value of its future lease payments. In assessing its leases and determining its lease liability at lease commencement or upon modification, the Company was not able to readily determine the rate implicit for its lessee arrangements, and thus has used CCIC's incremental borrowing rate on a collateralized basis to determine the present value of the lease payments. The Company's ROU assets are measured as the balance of the lease liability plus any prepaid or accrued lease payments and any unamortized initial direct costs. Operating lease expenses are recognized on a ratable basis, regardless of whether the payment terms require the Company to make payments annually, quarterly, monthly, or for the entire term in advance. Certain of the Company's ground lease agreements contain fixed escalation clauses (such as fixed dollar or fixed percentage increases) or inflation-based escalation clauses (such as those tied to the change in CPI). If the payment terms include fixed escalator provisions, the effect of such increases is recognized on a straight-line basis. The Company calculates the straight-line expense over the contract's estimated lease term, including any renewal option periods that the Company deems reasonably certain to be exercised.

Lease agreements may also contain provisions for a contingent payment based on (1) the revenues derived from the communications infrastructure located on the leased asset or (2) the change in CPI. The Company's contingent payments are considered variable lease payments and are (1) not included in the initial measurement of the ROU asset or lease liability due to the uncertainty of the payment amount and (2) recorded as expense in the period such contingencies are resolved.

ROU assets associated with finance leases are included in "Property and equipment, net" on the Company's condensed consolidated balance sheet. If applicable, the Company measures the lease liability for finance leases using the effective interest method. The initial lease liability is increased to reflect interest on the liability and decreased to reflect payments made during the period. Interest on the lease liability is determined each period during the lease term as the amount that results in a constant periodic discount rate on the remaining balance of the liability. The Company measures ROU assets for finance leases on a ratable basis over the applicable lease term.

~~Lease Accounting~~—~~Lessor.~~ The Company's lessor arrangements primarily include contracts for dedicated space on its communications infrastructure. The Company classifies its leases at inception as operating, direct financing or sales-type leases. A lease is classified as a sales-type lease if at least one of the following criteria is met: (1) the lease transfers ownership of the underlying asset to the lessee, (2) the lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise, (3) the lease term is for a major part of the remaining economic life of the underlying asset, (4) the present value of the sum of the lease payments equals or exceeds substantially all of the fair value of the underlying assets, or (5) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. Furthermore, when none of the above criteria is met, a lease is classified as a direct financing lease if both of the following criteria are met: (1) the present value of the of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds the fair value of the underlying asset and (2) it is probable that the lessor will collect the lease payments plus any amount necessary to satisfy a residual value guarantee. A lease is classified as an operating lease if it does not qualify as a sales-type or direct financing lease. Currently, the Company classifies all of its lessor arrangements as operating leases.

Site rental revenues from the Company’s lessor arrangements are recognized on a straight-line, ratable basis over the fixed, non-cancelable term of the relevant contract, regardless of whether the payments from the tenant are received in equal monthly amounts during the life of a contract. Certain of the Company's contracts contain fixed escalation clauses (such as fixed-dollar or fixed-percentage increases) or inflation-based escalation clauses (such as those tied to the change in CPI). If the payment terms call for fixed elements, such as fixed escalations, upfront payments, or rent-free periods, the rental revenue is recognized on a straight-line basis over the fixed, non-cancelable term of the agreement. When calculating straight-line site rental revenues, the Company considers all fixed elements of tenant contractual escalation provisions.

~~See note 8 for further information.~~financial statements.

Recent Accounting Pronouncements Not Yet Adopted

No new accounting pronouncements issued but not yet adopted are expected to have a material impact on the Company's condensed consolidated financial statements.

~~CC HOLDINGS GS V LLC~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Unaudited~~

~~(Tabular dollars in thousands)~~


3.4.	Debt

The outstanding balance of the 3.849% Secured Notes due April 2023 as of September 30, ~~2019~~2020 and December 31, ~~2018~~2019 was ~~$995~~$996 million and ~~$994~~$995 million, respectively.

Interest Expense and Amortization of Deferred Financing Costs

The components of interest expense and amortization of deferred financing costs are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018		2020		2019		2020		2019
Interest expense on debt obligations	$	9,623	$	9,623	$	28,868	$	28,868	$	9,623	$	9,623	$	28,868	$	28,868
Amortization of deferred financing costs	346		346		1,038		1,038		346		346		1,038		1,038
Total	$	9,969	$	9,969	$	29,906	$	29,906	$	9,969	$	9,969	$	29,906	$	29,906

CC HOLDINGS GS V LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(Tabular dollars in thousands)


4.5.	Related Party Transactions

Pursuant to the Management Agreement, CCUSA has agreed to employ, supervise and pay at all times a sufficient number of capable employees as may be necessary to perform services in accordance with the operation standards defined in the Management Agreement. CCUSA currently acts as the Manager of the sites held by subsidiaries of CCIC. The management fee is equal to 7.5% of the ~~Company’s Operating~~Company's "Operating Revenues," as defined in the Management Agreement, which is based on the ~~Company’s~~Company's reported revenues adjusted to exclude certain items including revenues related to the accounting for leases with fixed escalators. The fee is compensation for those functions reasonably necessary to maintain, market, operate, manage and administer the sites, other than the operating expenses (which includes real estate and personal property taxes, ground lease and easement payments, and insurance premiums).

Further, in connection with its role as Manager, CCUSA may ~~make~~offer certain ~~modifications~~installation and modification services to ~~the Company's towers.~~

~~In addition, CCUSA may perform installation services~~tenants on the Company's ~~towers, for which~~towers; however, the Company receives no cash from, and is not a party to, ~~any agreement~~such transactions. The Company includes the deferred revenue for a portion of the transaction price for the tower installation and ~~for~~modification services, which norepresents a lease component under GAAP, within "Deferred revenues," on the Company's condensed consolidated balance sheet and recognizes it as "Amortization of tower installations and modifications" on the Company's condensed consolidated statement of operations over the associated estimated lease term. The portions of the transaction price which do not represent a lease component are not reflected in the Company's operating ~~results are reflected herein.~~results.

As part of ~~the CCIC~~CCIC's strategy to obtain long-term control of the land interests under its towers, affiliates of the Company have acquired rights to land under the Company's towers. These affiliates then lease the land to the ~~Company.~~Company, and the Company pays ground rent expenses to the affiliates. Under such circumstances, the Company's obligation typically continues with the same or similar economic terms as the contract for the land that existed prior to ~~an affiliate acquiring rights to~~the purchase of such ~~land.~~land by the affiliate. As of September 30, ~~2019, approximately~~2020, more than 30% of the Company's towers were located on land which was controlled by an affiliate. Also, the Company receives site rental ~~revenue~~revenues from affiliates for land ~~controlled~~owned by the Company on which affiliates have ~~towers and pays ground rent expense to affiliates for land owned by affiliates on which the Company has~~ towers.

For the nine months ended September 30, ~~2019~~2020 and ~~2018,~~2019, the Company recorded equity distributions of ~~$225.8~~$308.0 million and ~~$238.7~~$278.2 million, respectively, reflecting distributions to its member. Cash ~~on hand in excess of~~on-hand above the amount that is required by the Management Agreement has been, and is expected to continue to be, distributed to the Company's parent company. As of September 30, ~~2019~~2020 and ~~2018,~~2019, other than the amounts of its ROU assets and operating lease liabilities related to land leased from affiliates of the Company reflected in "Operating lease right-of-use assets," "Current portion of operating lease liabilities—related parties" and "Operating lease liabilities—related ~~parties" on the Company's condensed consolidated balance sheet,~~parties," the Company had no material related party assets or liabilities on its condensed consolidated balance sheet.


5.6.	Income Taxes

CCIC operates as a REIT for U.S. federal income tax purposes. As a REIT, CCIC is generally entitled to a deduction for dividends that it pays and therefore is not subject to U.S. federal corporate income tax on its net taxable income that is currently distributed to its stockholders. For U.S. federal income tax purposes, the Company's assets and operations are included in the CCIC REIT.

For the nine months ended September 30, ~~2019~~2020 and ~~2018,~~2019, the Company's effective tax rate differed from the federal statutory rate predominately due to (1) CCIC's REIT status, including the dividends paid deduction, and (2) state taxes.

~~CC HOLDINGS GS V LLC~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Unaudited~~

~~(Tabular dollars in thousands)~~


6.7.	Fair Values

The fair value of cash and cash equivalents approximates the carrying value. The Company determines the fair value of its debt securities based on indicative, non-binding quotes from brokers. Quotes from brokers require judgment and are based on the brokers' interpretation of market information, including implied credit spreads for similar borrowings on recent trades or bid/ask prices or quotes from active markets if ~~applicable. Since~~available. There were no changes since December 31, ~~2018, there have not been any changes~~2019, in the Company's valuation techniques used to measure fair values. The estimated fair values of the Company's financial instruments, along with the carrying amounts of the related assets and liabilities, are as follows:

Level in Fair Value Hierarchy September 30, 2019 December 31, 2018

Carrying
Amount

Fair
Value

Carrying
Amount

Fair
Value
Assets:
Cash and cash equivalents 1 $ 18,486
$ 18,486
$ 18,707
$ 18,707
Liabilities:
Debt 2 995,085
1,047,800
994,047
990,600

CC HOLDINGS GS V LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(Tabular dollars in thousands)



	Level in Fair Value Hierarchy	September 30, 2020				December 31, 2019
	Level in Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and cash equivalents	1	$	31,565	$	31,565	$	20,407	$	20,407
Liabilities:
Debt	2	996,469		1,075,500		995,431		1,046,200


7.8.	Commitments and Contingencies

The Company is involved in various claims, assessments, lawsuits or proceedings arising in the ordinary course of business. While there are uncertainties inherent in the ultimate outcome of such matters, and it is impossible to presently determine the ultimate costs or losses that may be incurred, if any, management believes the adverse resolution of such uncertainties and the incurrence of such costs should not have a material adverse effect on the Company's condensed consolidated financial position or results of operations. In addition, ~~CCIC, through its subsidiaries (including the Company), has the~~see note 1 for a discussion of CCIC's option to purchase ~~in 2037 all (but not less than all) of the Sprint Sites, which represent~~ approximately 68% of the Company's ~~sites.~~towers at the end of their respective lease terms. CCIC has no obligation to exercise the purchase option.


8.	~~Leases~~

~~Lessor Tenant Leases~~

The following table is a summary of the rental cash payments owed to the Company, as a lessor, by tenants pursuant to contractual agreements in effect as of September 30, 2019. Generally, the Company's leases with its tenants provide for (1) annual escalations, (2) multiple renewal periods at the tenant's option and (3) only limited termination rights at the applicable tenant's option through the current term. The tenants' rental payments included in the table below are through the current terms with a maximum current term of 20 years and do not assume exercise of tenant renewal options.

Three Months Ending December 31, Years Ending December 31,
2019 2020 2021 2022 2023 Thereafter Total
Tenant leases^(a)
$ 166,906
$ 675,608
$ 672,744
$ 658,638
$ 515,992
$ 1,810,523
$ 4,500,411


~~(a)~~	~~Inclusive of leases with related parties. See note 4.~~

~~CC HOLDINGS GS V LLC~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Unaudited~~

~~(Tabular dollars in thousands)~~

~~Lessee Operating Leases~~

~~The components of the Company's lease expense is as follows:~~

Three Months Ended Nine Months Ended
September 30, 2019 September 30, 2019
Lease cost^(a):

Operating lease expense^(b)
30,826
90,027
Variable lease expense^(c)
8,458
27,080
Total lease expense $ 39,284
$ 117,107


~~(a)~~	~~Inclusive of leases with related parties. See note 4.~~


~~(b)~~	~~Represents the Company's operating lease expense related to its ROU assets for both the three and nine months ended September 30, 2019.~~


~~(c)~~	Represents the Company's contingent payments for operating leases (such as payments based on revenues derived from the communications infrastructure located on the leased asset) for both the three and nine months ended September 30, 2019. Such contingencies are recognized as expense in the period they are resolved.

~~Lessee Finance Leases~~

The Company's finance leases are related to the towers subject to prepaid master lease agreements with Sprint and are recorded as "Property and equipment, net" on the condensed consolidated balance sheet. See note 1 for further discussion of the Company's prepaid master lease agreements and note 2 for further information regarding the Company's adoption method of the new lease standard. Finance leases and associated leasehold improvements related to gross property and equipment and accumulated depreciation were $979 million and $635 million, respectively, as of September 30, 2019. For the three and nine months ended September 30, 2019, the Company recorded $10 million and $31 million to "Depreciation, amortization and accretion" related to finance leases, respectively.

~~Other Lessee Information~~

~~As of September 30, 2019, the Company's weighted-average remaining lease term and weighted-average discount rate for operating leases were 16 years and 4.4%, respectively.~~

~~The following table is a summary of the Company's maturities of operating lease liabilities as of September 30, 2019:~~

Three months ending December 31, Years ending December 31,
2019 2020 2021 2022 2023 Thereafter Total undiscounted lease payments Less: Imputed interest Total operating lease liabilities
Operating leases^(a)(b)
$ 25,842
$ 107,212
$ 107,256
$ 106,786
$ 106,235
$ 1,252,978
$ 1,706,309
$ (505,011 ) $ 1,201,298


~~(a)~~	Excludes the Company's contingent payments for operating leases (such as payments based on revenues derived from the communications infrastructure located on the leased asset) as such arrangements are excluded from the Company's operating lease liability. Such contingencies are recognized as expense in the period they are resolved.


~~(b)~~	~~Inclusive of leases with related parties. See note 4.~~

~~Comparative Information from 2018 Form 10-K~~

The Company adopted ASC 842 using a modified retrospective approach as of the effective date, without adjusting the comparative periods, and therefore, as required by ASC 842, has included the following comparative information from note 10 to the consolidated financial statements in its 2018 Form 10-K.

The operating lease payments included in the table below include payments for certain renewal periods at the Company's option that are deemed reasonably assured to be exercised and an estimate of contingent payments based on revenues and gross margins derived from existing tenant leases.

Years ending December 31,
2019 2020 2021 2022 2023 Thereafter Total
Operating leases^(a)
$ 142,671
$ 144,069
$ 144,390
$ 142,144
$ 140,193
$ 1,697,442
$ 2,410,909


~~(a)~~	~~Inclusive of leases with related parties. See note 4.~~

~~CC HOLDINGS GS V LLC~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Unaudited~~

~~(Tabular dollars in thousands)~~


9.	Supplemental Cash Flow Information


	Nine Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2020			2019
Supplemental disclosure of cash flow information:
Cash payments related to operating lease liabilities^(a)(b)	$	79,643	$	—	$	80,853		$	79,643
Interest paid	19,246		19,246		19,246			19,246
Supplemental disclosure of non-cash operating, investing and financing activities:
New ROU assets obtained in exchange for operating lease liabilities^(b)	71,578		—		46,234			71,578
Increase (decrease) in accounts payable for purchases of property and equipment					(2,758		)	4,075


(a)	Excludes ~~cash~~the Company's contingent payments ~~related to contingent payment~~ pursuant to operating leases, which are recorded as expense in the period such contingencies are resolved.


(b)	Inclusive of leases with related parties. See note 4.5.


~~10.~~	~~Guarantor Subsidiaries~~

CCL has no independent assets or operations. The 3.849% Secured Notes are guaranteed by all subsidiaries of CCL, each of which is a wholly-owned subsidiary of CCL, other than Crown Castle GS III Corp., which is a co-issuer of the 2012 Secured Notes and a wholly-owned finance subsidiary. Such guarantees are full and unconditional and joint and several. Subject to the provisions of the Secured Notes Indenture, a guarantor may be released and relieved of its obligations under its guarantee under certain circumstances including: (1) in the event of any sale or other disposition of all or substantially all of the assets of any guarantor, by way of merger, consolidation or otherwise to a person that is not (either before or after giving effect to such transaction) CCL or a subsidiary of CCL, (2) in the event of any sale or other disposition of all of the capital stock of any guarantor, to a person that is not (either before or after giving effect to such transaction) CCL or a subsidiary of CCL, (3) upon CCL's exercise of legal defeasance in accordance with the relevant provisions of the Secured Notes Indenture, or (4) upon the discharge of the Secured Notes Indenture in accordance with its terms.


ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the response to Part I, Item 1 of this report and ~~the~~our consolidated financial statements ~~of the Company~~ including the related notes and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" ~~("MD&A")~~included in our ~~2018~~2019 Form 10-K. ~~Capitalized terms used but not defined~~As discussed in the "Explanatory Note" to this Form 10-Q ~~have the same meaning given to them~~and in further detail in our ~~2018~~2019 Form ~~10-K. Unless~~10-K, amounts presented for the third quarter of 2019 have been restated to reflect the impact of the Historical Adjustments.

Throughout this ~~Quarterly Report on~~Item 2 and this Form 10-Q, ~~indicates otherwise or the context requires, the terms "we," "our," "our company," "the company," or "us" as used herein refer to CC Holdings GS V LLC~~site rental revenues include both revenues from tenant contracts and ~~its subsidiaries.~~amortization of tower installations and modifications.

General Overview

We own, lease orand manage sites that are geographically dispersed throughout the United States. The vast majority of our site rental revenues is of a recurring nature and is subject to long-term contracts with our tenants.

Business Fundamentals and Results

The following are certain highlights of our business fundamentals and results as of and for the nine months ended September 30, ~~2019.~~2020:

Potential growth resulting from the increasing demand for wireless data


◦	We expect U.S. wireless carriers will continue their focus on improving network quality and expanding capacity (including through 5G initiatives) by adding additional antennas or other equipment on our ~~towers.~~sites.

◦

We expect existing and potential new tenant demand for our towers will result from (1) new technologies, (2) increased usage of mobile entertainment, mobile internet, and machine-to-machine applications, (3) adoption of other emerging and embedded wireless devices (including smartphones, laptops, tablets, wearables and other devices), (4) increasing smartphone penetration, (5) wireless carrier focus on expanding both network quality and capacity (6) the adoption of other bandwidth-intensive applications (such as cloud services and ~~(6)~~video communications) and (7) the availability of additional spectrum.


◦	Tenant additions on our existing sites are achieved at a low incremental operating cost, delivering high incremental returns.


◦	Substantially all of our ~~towers~~sites can accommodate additional tenancy, either as currently constructed or with appropriate modifications to the structure (which may include extensions or structural reinforcement).

Organizational structure


◦	For U.S. federal income tax purposes, CCIC operates as a REIT and, as its indirect subsidiary, our assets and operations are included in the CCIC REIT.


◦	Our subsidiaries (other than Crown Castle GS III Corp.) were organized specifically to own, lease and manage certain ~~communications infrastructure,~~sites, such as towers or other structures, and have no employees.


◦	Management services, including those functions reasonably necessary to maintain, market, operate, manage or administer our sites, are performed by CCUSA. The management fee is equal to 7.5% of our Operating Revenues as defined in the Management Agreement.

Site rental revenues under long-term tenant contracts


◦	Initial terms of five to 15 years for site rental revenues derived from ~~tenants,~~tenant contracts, with contractual escalations and multiple renewal periods of five to 10 years each, exercisable at the option of the ~~tenant of five to 10 years each.~~tenant.


◦	~~The weighted-average~~Weighted-average remaining term ~~(calculated by weighting the remaining term for each contract by the related site rental revenue)~~ of approximately ~~six~~five years, exclusive of renewals exercisable at the tenants' option, currently representing approximately ~~$4.5~~$4.2 billion of expected future cash inflows.

Majority of our revenues from large wireless carriers


◦	~~90%~~Approximately 89% of our site rental revenues were derived from ~~Sprint,~~T-Mobile (including revenues previously derived from Sprint), AT&T ~~T-Mobile~~ and Verizon Wireless.


▪	On April 1, 2020, T-Mobile and Sprint announced the completion of their previously disclosed merger. For additional information, see "Item 1A. Risk Factors" in our 2019 Form 10-K.

Majority of land interests under our towers under long-term control


◦	More than 80% and more than 50% of our sites are under our control for greater than 10 and 20 years, respectively. The aforementioned percentages include towers that reside on land interests that are owned, ~~by us,~~ including through fee interests and perpetual easements.


◦	~~22%~~Approximately one-fourth of our site rental ~~cost~~costs of operations ~~represents~~represent ground lease payments to our affiliates. Such affiliates acquired the rights to such land interests as a result of negotiated transactions with third parties in connection with a program established by CCIC to extend the rights to the land under its portfolio of towers.

Relatively fixed tower operating costs


◦	Our operating costs tend to escalate at approximately the rate of inflation and are not typically influenced by tenant additions or non-renewals.

Minimal sustaining capital expenditure requirements


◦	Sustaining capital expenditures represented ~~approximately~~less than 1% of site rental revenues.

Fixed rate debt with no short-term maturities


◦	Our debt consists of $1.0 billion aggregate principal amount of 3.849% Secured Notes. See note 34 to our condensed consolidated financial statements.

Significant cash flows from operations


◦	Net cash provided by operating activities was ~~$290.0~~$356.3 million. See "Item 2. MD&A—Liquidity and Capital Resources."

Coronavirus (COVID-19)

The global outbreak of the novel coronavirus (COVID-19) was declared a pandemic by the World Health Organization and a national emergency by the U.S. government in March 2020 and has adversely affected the United States. In response, both the public and private sectors have introduced certain policies and initiatives in an effort to reduce the transmission of COVID-19 ("Initiatives"), such as the imposition of travel restrictions; mandates from federal, state and local authorities to close non-essential businesses and avoid large gatherings of people; quarantine or "shelter-in-place;" and the promotion of social distancing and the adoption of work-from-home and online learning by companies and institutions. In addition, the continued spread of COVID-19 and the resulting Initiatives have led to a significant economic downturn, global supply chain disruptions and volatility in the global capital markets.

In accordance with the U.S. Department of Homeland Security guidance issued in March 2020 designating telecommunications infrastructure and networks as critical infrastructure, we have continued our operations to ensure viability of communications networks, which are essential to public health and safety. We do not believe that COVID-19 had a material impact on our financial position, results of operations and cash flows during the nine months ended September 30, 2020. We currently anticipate that we will be able to maintain sufficient liquidity as we manage through the current environment. See also "Item 2. MD&A—Liquidity and Capital Resources—Liquidity Position" and "Item 1A. Risk Factors."

~~Consolidated~~ Guarantor Subsidiaries

In March 2020, the SEC adopted amendments to reduce and simplify the financial disclosure requirements for guarantors and issuers of guaranteed registered securities, and affiliates of such issuers whose securities are collateralized. The amendments will be effective January 4, 2021, but voluntary compliance with the amendments in advance of January 4, 2021 is permitted.

Summary financial information of such subsidiaries that, in certain circumstances, may be required by the amendments described above is not provided in this Form 10-Q because the assets, liabilities and results of operations of the combined guarantors of the 3.849% Secured Notes and CCL affiliates whose securities are pledged as collateral to secure the 3.849% Secured Notes are not materially different than the corresponding amounts presented in CCL's consolidated financial statements. Below is a description of certain material terms of the guarantees of the 3.849% Secured Notes and the pledge of the equity interests of the Guarantors (as defined below) that secures the 3.849% Secured Notes.

The 3.849% Secured Notes were co-issued by CCL and its wholly owned finance subsidiary, Crown Castle GS III Corp. ("Co-Issuer" and, together with CCL, "Issuers"), and are guaranteed by all direct and indirect wholly owned subsidiaries of CCL, other than Co-Issuer (collectively, "Guarantors"). Subject to the provisions of the Secured Notes Indenture, a Guarantor may be released and relieved of its obligations under its guarantee under certain circumstances, including: (1) in the event of any sale or other disposition of all or substantially all of the assets of any Guarantor, by way of merger, consolidation or otherwise to a person that is not (either before or after giving effect to such transaction) CCL or one of its subsidiaries, (2) in the event of any sale or other disposition of all of the capital stock of any Guarantor, to a person that is not (either before or after giving effect to such transaction) CCL or a subsidiary of CCL, (3) upon CCL's exercise of legal defeasance in accordance with the relevant provisions of the Secured Notes Indenture or (4) upon the discharge of the Secured Notes Indenture in accordance with its terms.

CCL is a holding company with no significant operations or material assets other than the direct and indirect equity interests it holds in the Co-Issuer and the Guarantors. CCL conducts all of its business operations through the Guarantors. As a result, its ability to pay principal and interest on the 3.849% Secured Notes is dependent on the cash flow generated by the Guarantors and their ability to make such cash available to CCL by dividend or otherwise. The Guarantors' earnings will depend on their financial and operating performance, which will be affected by general economic, industry, financial, competitive, operating, legislative, regulatory and other factors beyond CCL's control. Any payments of dividends, distributions, loans or advances to CCL by the

Guarantors could also be subject to restrictions on dividends under applicable local law in the jurisdictions in which the Guarantors operate. In the event that CCL does not receive distributions from the Guarantors, or to the extent that the earnings from, or other available assets of, the Guarantors are insufficient, CCL may be unable to make payments on the 3.849% Secured Notes. Furthermore, the Co-Issuer has no material assets and conducts no operations. Therefore, the Co-Issuer has no independent ability to service the interest and principal obligations under the 3.849% Secured Notes.

Pursuant to the Secured Notes Indenture, and the terms of a pledge and security agreement related thereto ("Pledge Agreement" and, together with the Secured Notes Indenture, "Notes Documents"), the 3.849% Secured Notes and the related guarantees are secured by perfected, first priority (subject to certain permitted liens set forth in the Secured Notes Indenture) pledges of the equity interests of each of the Guarantors and proceeds thereof. The 3.849% Secured Notes are not secured by any other assets, including any mortgage liens on properties.

Pursuant to the terms of the Notes Documents, the trustee under the Secured Notes Indenture may pursue remedies under the Secured Notes Indenture, or pursue foreclosure proceedings on the collateral, following an event of default under the Secured Notes Indenture. However, unless a principal payment event of default or a bankruptcy event of default under the Secured Notes Indenture has occurred and is continuing or any other event has occurred that resulted in the acceleration of the 3.849% Secured Notes, the pledgors of such equity interests will receive any dividends and distributions on such pledged equity interests free and clear of the lien securing the 3.849% Secured Notes. Because the collateral consists of equity interests, its value is subject to fluctuations based on factors that include, among other things, general economic conditions and the ability to realize on the collateral as part of a going concern and in an orderly fashion to available and willing buyers and not under distressed circumstances. There is no trading market for the pledged equity interests.

Under the terms of the Notes Documents, the Issuers and the Guarantors will be entitled to the release of the collateral from the liens securing the 3.849% Secured Notes under one or more circumstances, including (1) to enable the Issuers or any subsidiary to consummate the disposition of such collateral as described under the asset sale covenant of the Secured Notes Indenture; (2) as permitted under the amendment provisions of the Secured Notes Indenture; or (3) as otherwise provided in the Pledge Agreement. Upon the release of any subsidiary from its guarantee, if any, in accordance with the terms of the Secured Notes Indenture, the lien on any collateral held by such Guarantor and the lien on any pledged equity interests issued by such Guarantor will automatically terminate. In addition, upon the occurrence of (i) payment in full of the 3.849% Secured Notes and any other payment obligations under the Notes Documents, together with accrued and unpaid interest, or (ii) a defeasance or discharge of the Secured Notes Indenture as provided in the Secured Notes Indenture, the liens on all collateral created under the Pledge Agreement will terminate.

Results of Operations

The following discussion of our results of operations should be read in conjunction with our condensed consolidated financial statements and our ~~2018~~2019 Form 10-K. Amounts for three and nine months ended September 30, 2019, and any discussion relating to those amounts, give effect to the impact of the Historical Adjustments as described in the "Explanatory Note" and Note 2 to our condensed consolidation financial statements.

The following discussion of our results of operations is based on our condensed consolidated financial statements prepared in accordance with GAAP which requires us to make estimates and judgments that affect the reported amounts. See "Item 2. MD&A—Accounting and Reporting Matters—Critical Accounting Policies and Estimates" herein and note 23 to our ~~2018~~2019 Form 10-K.

Highlights of our results of operations for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 are depicted below.


	Three Months Ended September 30, 2019			Three Months Ended September 30, 2018			Percent Change		Three Months Ended September 30,
(In thousands of dollars)									2020			2019			Percent Change
	(Dollars in thousands)											(As Restated)
Site rental revenues	$	171,745		$	165,108		4	%
Site rental revenues:
Revenues from tenant contracts									$	173,348		$	171,745		1	%
Amortization of tower installations and modifications^(a)									14,818			13,436			10	%
Total site rental revenues									188,166			185,181			2	%

Operating expenses:
Costs of operations^(a)(b)	49,286			47,779			3	%
Management fee^(b)	12,611			12,207			3	%
Site rental cost of operations—third parties^(b)									38,640			38,406			1	%
Ground rent expenses—related parties									11,446			10,880			5	%
Site rental cost of operations—total^(b)									50,086			49,286			2	%
Management fee—related party									13,084			12,611			4	%
Asset write-down charges	—			—			*		—			—			*
Depreciation, amortization and accretion	52,665			52,333			1	%	53,048			51,881			2	%
Total operating expenses	114,562			112,319			2	%	116,218			113,778			2	%
Operating income (loss)	57,183			52,789			8	%	71,948			71,403			1	%
Interest expense and amortization of deferred financing costs	(9,969		)	(9,969		)	—	%	(9,969		)	(9,969		)	*
Other income (expense)	160			90					(12		)	160
Income (loss) before income taxes	47,374			42,910					61,967			61,594
Benefit (provision) for income taxes	(102		)	(93		)			(80		)	(102		)
Net income (loss)	$	47,272		$	42,817				$	61,887		$	61,492

									Nine Months Ended September 30,
(In thousands of dollars)									2020			2019			Percent Change
												(As Restated)
Site rental revenues:
Revenues from tenant contracts									$	517,041		$	507,256		2	%
Amortization of tower installations and modifications^(a)									43,639			38,371			14	%
Total site rental revenues									560,680			545,627			3	%

Operating expenses:
Site rental cost of operations—third parties^(b)									115,156			114,212			1	%
Ground rent expenses—related parties									34,235			32,210			6	%
Site rental cost of operations—total^(b)									149,391			146,422			2	%
Management fee—related party									38,596			37,238			4	%
Asset write-down charges									424			375			*
Depreciation, amortization and accretion									158,138			155,087			2	%
Total operating expenses									346,549			339,122			2	%
Operating income (loss)									214,131			206,505			4	%
Interest expense and amortization of deferred financing costs									(29,906		)	(29,906		)	*
Other income (expense)									74			445
Income (loss) before income taxes									184,299			177,044
Benefit (provision) for income taxes									(292		)	(307		)
Net income (loss)									$	184,007		$	176,737


*	Percentage is not ~~meaningful~~meaningful.


(a)	Represents the amortization of deferred revenues recorded in connection with the tower installation and modification transactions described in note 5 to our condensed consolidated financial statements that result in permanent improvements to our towers. We receive no cash from, and are not party to, such transactions.


(b)	Exclusive of depreciation, amortization and accretion shown separately and certain indirect costs included in the management fee.


~~(b)~~	~~Inclusive of related party transactions.~~

Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018
Percent
Change
(Dollars in thousands)
Site rental revenues $ 507,256
$ 492,158
3 %

Operating expenses:
Costs of operations^(a)(b)
146,422
142,947
2 %
Management fee^(b)
37,238
36,227
3 %
Asset write-down charges 375
344
*
Depreciation, amortization and accretion 157,436
157,765
— %
Total operating expenses 341,471
337,283
1 %
Operating income (loss) 165,785
154,875
7 %
Interest expense and amortization of deferred financing costs (29,906 ) (29,906 ) — %
Other income (expense) 445
63

Income (loss) before income taxes 136,324
125,032

Benefit (provision) for income taxes (307 ) (279 )
Net income (loss) $ 136,017
$ 124,753


*	~~Percentage not meaningful~~


~~(a)~~	~~Exclusive of depreciation, amortization and accretion shown separately and certain indirect costs included in the management fee.~~


~~(b)~~	~~Inclusive of related party transactions.~~

Third Quarter ~~2019~~2020 and ~~2018~~2019

Site rental revenues for the three months ended September 30, ~~2019~~2020 increased by ~~$6.6~~$3.0 million, or 4%2%, from the same period in the prior year. ~~Site~~The increase in site rental revenues ~~were~~was impacted by the following items, inclusive of straight-line accounting: tenant additions across our entire portfolio, renewals or extensions of tenant contracts and escalations ~~and~~offset by non-renewals of tenant contracts. Tenant additions were influenced by our tenants' ongoing efforts to improve network quality and capacity.

Operating income for the three months ended September 30, ~~2019~~2020 increased by ~~$4.4~~$0.5 million, or 8%1%, from the same period in the prior year. The increase in operating income was primarily due to the aforementioned increase in site rental revenues, partially offset by an increase in the cost of operations from the three months ended September 30, ~~2018.~~2019.

Interest expense and amortization of deferred financing costs for the three months ended September 30, ~~2019~~2020 remained unchanged from the same period in the prior year.

Net income for the three months ended September 30, ~~2019~~2020 was ~~$47.3~~$61.9 million and remained relatively consistent compared to net income of ~~$42.8~~$61.5 million for the three months ended September 30, ~~2018. The increase was primarily due to the aforementioned increase in site rental revenues.~~

2019.

First Nine Months ~~2019~~2020 and ~~2018~~2019

Site rental revenues for the nine months ended September 30, ~~2019~~2020 increased by $15.1 million, or 3%, from the same period in the prior year. The increase in site rental revenues was impacted by the following items, inclusive of straight-line accounting: new tenant additions across our entire portfolio, renewals or extensions of tenant leases and escalations ~~and~~offset by non-renewal of tenant contracts. Tenant additions were influenced by our tenants' ongoing efforts to improve network quality and capacity.

Operating income for the nine months ended September 30, ~~2019~~2020 increased by ~~$10.9~~$7.6 million, or 7%4%, from the same period in the prior year. The increase in operating income was predominately due to the aforementioned increase in site rental revenues, partially offset by an increase in the cost of operations from the nine months ended September 30, ~~2018.~~2019.

Interest expense and amortization of deferred financing costs for the nine months ended September 30, ~~2019~~2020 remained unchanged from the same period in the prior year.

Net income for the nine months ended September 30, ~~2019~~2020 was ~~$136.0~~$184.0 million compared to net income of ~~$124.8~~$176.7 million for the nine months ended September 30, ~~2018.~~2019. The increase was due primarily to the aforementioned increase in site rental revenues.

Liquidity and Capital Resources

Overview

General. Our core business generates revenues under long-term tenant contracts (See "Item 2. MD&A—General Overview"), from the largest U.S. wireless carriers. Historically, our net cash provided by operating activities has exceeded our capital expenditures. For the foreseeable future, we expect to generate net cash provided by operating activities (exclusive of movements in working capital) that exceeds our capital expenditures. We seek to allocate the net cash generated from our business in a manner that we believe drives value for our member.

From a cash management perspective, we currently distribute cash on hand above amounts required pursuant to the Management Agreement to our member. If any future event would occur that would leave us with a deficiency in our operating cash flow, while not required, CCIC may contribute cash back to us.

CCIC operates as a REIT for U.S. federal income tax purposes. For U.S. federal income tax purposes, our assets and operations are included in the CCIC REIT. We expect to continue to pay minimal cash income taxes as a result of CCIC's REIT status and NOLs.

Liquidity Position. The following is a summary of our capitalization and liquidity position as of September 30, ~~2019:~~2020:


	(In thousands)
(In thousands of dollars)			September 30, 2020
Cash and cash equivalents	$	18,486	$	31,565
Debt	995,085		996,469
Total member's equity	2,343,207		1,972,959

Over the next 12 months:

We expect that our net cash provided by operating activities should be sufficient to cover our expected capital expenditures.

We have no scheduled contractual debt maturities.

See note 34 to our condensed consolidated financial statements for additional information regarding our debt.

Summary Cash Flow Information


	Nine Months Ended September 30,									Nine Months Ended September 30,
	2019			2018			Change
(In thousands of dollars)										2020			2019			Change
	(In thousands)												(As Restated)
Net cash provided by (used for):
Operating activities	$	289,983		$	284,368		$	5,615		$	356,339		$	342,214		$	14,125
Investing activities	(64,403		)	(52,187		)	(12,216		)	(37,179		)	(64,204		)	27,025
Financing activities	(225,801		)	(238,716		)	12,915			(308,002		)	(278,231		)	(29,771		)
Net increase (decrease) in cash and cash equivalents	$	(221	)	$	(6,535	)	$	6,314		$	11,158		$	(221	)	$	11,379

Operating Activities

The increase in net cash provided by operating activities for the first nine months of ~~2019~~2020 of ~~$5.6~~$14.1 million, or 2%4%, from the first nine months of ~~2018,~~2019, was primarily due to growth in cash revenues, including cash escalations that are subject to straight-line ~~accounting, offset by a net decrease from changes in working capital.~~accounting. Changes in working capital contribute to variability in net cash provided by operating activities, largely due to the timing of advanced payments by us and advanced receipts from tenants.

Investing Activities

Capital Expenditures

Our capital expenditures are primarily recorded as a result of tower installation and modification services performed by CCUSA that result in permanent improvements to our towers. We receive no cash from, and are not party to, such transactions. Such capital expenditures include the following:

Discretionary capital expenditures primarily consist of expansion or development of ~~communications infrastructure~~sites (including capital expenditures related to (1) enhancing ~~communications infrastructure~~sites in order to add new tenants for the first time or support subsequent tenant equipment augmentations, or (2) modifying the structure of a ~~communications infrastructure~~site asset to accommodate additional tenants). Discretionary capital expenditures also include purchases of land interests under our towers, certain technology-related investments necessary to support and scale future ~~customer~~tenant demand for our ~~communications infrastructure,~~sites, and other capital projects. The expansion or development of existing ~~communications infrastructure~~sites to accommodate new leasing typically ~~vary~~varies based on, among other factors: (1) the type of ~~communications infrastructure,~~site, (2) the scope, volume and mix of work performed on the ~~communications infrastructure,~~site, (3) existing capacity prior to installation or (4) changes in structural engineering regulations and standards. Our decisions regarding discretionary capital expenditures are influenced by (1) sufficient potential to enhance CCIC's long-term stockholder value, (2) CCIC's availability and cost of capital and (3) CCIC's expected returns on alternative uses of cash, such as payments of dividends and investments.

Sustaining capital expenditures consist of maintenance capital expenditures on our sites that enable our tenants' ongoing quiet enjoyment of the site.

Capital expenditures for the nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 were as follows:


	Nine Months Ended September 30,							Nine Months Ended September 30,
	2019		2018		Change
(In thousands of dollars)								2020		2019		Change
	(In thousands)									(As Restated)
Discretionary	$	59,050	$	46,105	$	12,945		$	34,733	$	58,851	$	(24,118	)
Sustaining	5,353		6,082		(729		)	2,446		5,353		(2,907		)
Total	$	64,403	$	52,187	$	12,216		$	37,179	$	64,204	$	(27,025	)

Financing Activities

The net cash flows used for financing activities ~~for~~during the nine months ended September 30, 2020 and 2019 ~~and 2018 includes the impact from~~were impacted by our continued practice of distributing excess cash to our member.

2012 Secured Notes

See our ~~2018~~2019 Form 10-K for a discussion of the 2012 Secured Notes, debt restrictions and disclosures about market risk. There are no financial maintenance covenants in the Secured Notes Indenture. We are currently not restricted in our ability to incur additional indebtedness or distribute cash to affiliates or issue dividends to our member.

Accounting and Reporting Matters

Critical Accounting Policies and Estimates

Our critical accounting policies and estimates are those that we believe (1) are most important to the portrayal of our financial condition and results of operations or (2) require our most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. The critical accounting policies and estimates for ~~2019~~2020 are not intended to be a comprehensive list of our accounting policies and estimates. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP, with no need for management's judgment. In other cases, management is required to exercise judgment in the application of accounting principles with respect to particular transactions. Our critical accounting policies and estimates as of December 31, ~~2018~~2019 are described in "Item 7. MD&A—Accounting and Reporting Matters" and in note 23 in our ~~2018~~2019 Form 10-K. See below for our updated critical accounting policies and estimates related to our lessee arrangements following the adoption of the new lease accounting guidance (commonly referred to as "ASC 842" or the "new lease standard") on January 1, 2019. See notes 2 and 8 to our condensed consolidated financial statements for further discussion and information related to the new lease standard.

~~Lease Accounting~~—~~Lessee~~

Our lessee arrangements primarily consist of ground leases for land under our towers. Ground leases for land are specific to each site and are generally for an initial term of five to 10 years and are renewable (and cancelable after a notice period) at our option. We also enter into term easements and ground leases in which we prepay the entire term. The majority of our lease agreements have certain termination rights that provide for cancellation after a notice period and multiple renewal options at our option. We include certain renewal option periods in the lease term when we determine that the options are reasonably certain to be exercised.

Operating lease expense is recognized on a ratable basis, regardless of whether the payment terms require us to make payments annually, quarterly, monthly, or for the entire term in advance. Certain of our ground lease agreements contain fixed escalation clauses (such as fixed dollar or fixed percentage increases) or inflation-based escalation clauses (such as those tied to the change in CPI). If the payment terms include fixed escalator provisions, the effect of such increases is recognized on a straight-line basis. We calculate the straight-line expense over the contract's estimated lease term, including any renewal option periods that we deem reasonably certain to be exercised.

In conjunction with the adoption of ASC 842, we recognized a right-of-use ("ROU") asset and lease liability for each of our operating leases. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent the present value of our future lease payments. In assessing our leases and determining our lease liability at lease commencement or upon modification, we are not able to readily determine the rate implicit for our lessee arrangements and thus use CCIC's incremental borrowing rate on a collateralized basis to determine the present value of the lease payments. Our ROU assets are measured as the balance of the lease liability plus any prepaid or accrued lease payments plus any unamortized initial direct costs.

We review the carrying value of our ROU assets for impairment, similar to our other long-lived assets, whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. We could record impairments in the future if there are changes in (1) long-term market conditions, (2) expected future operating results or (3) the utility of the assets that negatively impact the fair value of our ROU assets.

Accounting Pronouncements

Recently Adopted Accounting Pronouncements.

See note 23 to our condensed consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted.

See note 23 to our condensed consolidated financial statements.


ITEM 4.	CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The Company conducted an evaluation, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that due to the material weakness in the Company's internal control over financial reporting described below, the Company's disclosure controls and procedures were not effective in alerting them in a timely manner to material information relating to the Company required to be included in the Company's periodic reports under the Securities Exchange Act of 1934, as amended.

Material Weakness in Internal Control over Financial Reporting

As previously disclosed in the Company's 2019 Form 10-K, management concluded that a material weakness existed in the Company's internal control over financial reporting, as it did not effectively design and maintain controls related to the accounting for tower installation and modification services.

Remediation of Material Weakness

Management is in the process of remediating the material weakness described above. Management has revised its accounting policies for its tower installation and modification services to identify and account for lease components and the related calculation of deferred revenue and is making improvements to existing processes and controls related to the determination of the accuracy of capital expenditures made for permanent improvements associated with tower installation services. Management is also implementing training with respect to the new processes and evaluating the need for additional resources.

Management believes that the measures described above will remediate the identified material weakness and strengthen the Company’s internal control over financial reporting. Management may take additional measures to strengthen its internal control environment.

Changes in Internal Control Over Financial Reporting

~~There~~Except as discussed above with respect to management's ongoing remediation of the material weakness, there have been no changes in the Company's internal control over financial reporting during the fiscal quarter covered by this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. ~~Existing information technology systems, review processes, and internal controls have been updated to align with the requirements of the new lease standard, which we adopted on January 1, 2019.~~

PART II—OTHER INFORMATION


ITEM 1.	LEGAL PROCEEDINGS

See the disclosure in note 78 to our condensed consolidated financial statements, ~~set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q,~~ which disclosure is hereby incorporated herein by reference.


ITEM 1A.	RISK FACTORS

The following risk factor is provided to update the risk factors previously discussed in "Item 1A. Risk Factors" in our 2019 Form 10-K.

The impact of COVID-19 and related risks could materially affect our financial position, results of operations and cash flows.

In The global spread of COVID-19 has created significant uncertainty and economic disruption. We have modified, and might further modify, our business practices as a result of the COVID-19 pandemic, the economic and social ramifications of the disease, and the societal and governmental responses in the communities in which we operate. See "Item 1A2. MD&A—General Overview—Coronavirus (COVID-19)" for further information. The extent to which the COVID-19 pandemic will affect our financial position, results of operations and cash flows is difficult to predict with certainty and depends on numerous evolving factors, including: the duration, scope and severity of the pandemic; government, social, business and other actions that have been and will be taken in response to the pandemic; and the effect of the pandemic on short- and long-term general economic conditions. Among other things, COVID-19 and the Initiatives could (1) adversely affect the ability of our ~~2018 Form 10-K, we have previously included the risk factor captioned “A substantial portion of our revenues is derived from a small number of tenants,~~suppliers, vendors, and the ~~loss, consolidation or financial instability of any of such tenants may materially decrease revenues or reduce~~Manager to provide products and services to us; (2) result in decreased demand for our ~~communications infrastructure~~sites; and ~~network services.” In light of the U.S. Department of Justice’s proposed settlement in July 2019~~(3) make it more difficult for us and the ~~approval by~~Manager to serve our tenants, including as a result of delays or suspensions in the ~~Federal Communications Commission~~issuance of permits or other authorizations needed to conduct our business. The potential effects of COVID-19 could also heighten the risks disclosed in October 2019 regarding the merger between T-Mobile and Sprint, set forth below is certain updated information relating to that risk factor. You should carefully consider the information provided in this document and themany of our risk factors ~~contained~~that are included in "Item 1A. Risk Factors" in our ~~2018~~2019 Form ~~10-K,~~10-K. Due to factors beyond our knowledge or control, including the duration and severity of COVID-19, as ~~updated by~~well as third-party actions taken to contain its spread and mitigate its public health effects, at this time we cannot estimate or predict with certainty the ~~information contained below.~~

~~For~~impact of COVID-19, the ~~nine months ended September 30, 2019, T-Mobile~~Initiatives, or the measures we take in response thereto on our financial position, results of operations and ~~Sprint represented approximately 21% and 34%, respectively, of~~cash flows, particularly over the ~~Company's consolidated site rental revenues. In addition, there is an average of approximately six years of current~~near to medium term, ~~remaining on all lease agreements with both T-Mobile and Sprint. Further,~~but the Company derived approximately 18% and 15% of its consolidated site rental revenues from T-Mobile and Sprint, respectively, on communications infrastructure where both carriers currently reside, inclusive of an approximately 2% impact ~~from previously disclosed expected non-renewals from the anticipated decommissioning of portions of T-Mobile's MetroPCS and Sprint's Clearwire networks.~~

could be material.


ITEM 6.	EXHIBITS

Exhibit Index



Exhibit No.		Description

(a)	3.1	Certificate of Formation, as amended, of CC Holdings GS V LLC

(a)	3.2	Second Amended and Restated Limited Liability Company Agreement of CC Holdings GS V LLC

(b)	22	List of Subsidiaries

*	31.1	Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002

*	31.2	Certification of Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002

†	32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002

*	101	The following financial statements from CC Holdings GS V LLC's Quarterly Report on Form 10-Q for the quarter ended September 30, ~~2019,~~2020, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheet, (ii) Condensed Consolidated Statement of Operations, (iii) Condensed Consolidated Statement of Cash Flows, (iv) Condensed Consolidated Statement of Changes of Member's Equity, and (v) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and including detailed tags

*	104	The cover page from CC Holdings GS V LLC's Quarterly Report on Form 10-Q for the quarter ended September 30, ~~2019,~~2020, formatted in Inline XBRL


*	Filed herewith.


†	Furnished herewith.


(a)	Incorporated by reference to the exhibit previously filed by the Registrant on Form S-4 (Registration No. 333-187970) on April 17, 2013.


(b)	Incorporated by reference to the exhibit previously filed by the Registrant on Annual Report on Form 10-K for the year ended December 31, 2019.

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.



		CC HOLDINGS GS V LLC

Date:	November 4, ~~2019~~2020	By:	/s/ Daniel K. Schlanger
			Daniel K. Schlanger
			~~Senior~~Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)

Date:	November 4, ~~2019~~2020	By:	/s/ Robert S. Collins
			Robert S. Collins
			Vice President and Controller
			(Principal Accounting Officer)

2022



	Three Months Ending December 31,		Years Ending December 31,
	2019		2020		2021		2022		2023		Thereafter		Total
Tenant leases^(a)	$	166,906	$	675,608	$	672,744	$	658,638	$	515,992	$	1,810,523	$	4,500,411



	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Lease cost^(a):
Operating lease expense^(b)	30,826		90,027
Variable lease expense^(c)	8,458		27,080
Total lease expense	$	39,284	$	117,107



	Nine Months Ended September 30, 2019			Nine Months Ended September 30, 2018			Percent Change
	(Dollars in thousands)
Site rental revenues	$	507,256		$	492,158		3	%

Operating expenses:
Costs of operations^(a)(b)	146,422			142,947			2	%
Management fee^(b)	37,238			36,227			3	%
Asset write-down charges	375			344			*
Depreciation, amortization and accretion	157,436			157,765			—	%
Total operating expenses	341,471			337,283			1	%
Operating income (loss)	165,785			154,875			7	%
Interest expense and amortization of deferred financing costs	(29,906		)	(29,906		)	—	%
Other income (expense)	445			63
Income (loss) before income taxes	136,324			125,032
Benefit (provision) for income taxes	(307		)	(279		)
Net income (loss)	$	136,017		$	124,753

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

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