UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One):

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended March 31, 2023.

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

Commission File Number: 001-14195

AMERICAN TOWER CORPORATION

(Exact name of registrant as specified in its charter)

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

116 Huntington Avenue

Boston, Massachusetts 02116

(Address of principal executive offices)

Telephone Number (617) 375-7500

(Registrant’s telephone number, including area code)

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

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

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

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

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

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

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

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

As of April 19, 2023, there were 466,043,234 shares of common stock outstanding.

AMERICAN TOWER CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2023

		Page Nos.
PART I. FINANCIAL INFORMATION
Item 1.	Unaudited Consolidated and Condensed Consolidated Financial Statements		1
	Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022		1
	Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022		2
	Consolidated Statements of Comprehensive (Loss) Income for the three months ended March 31, 2023 and 2022		3
	Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022		4
	Consolidated Statements of Equity for the three months ended March 31, 2023 and 2022		5
	Notes to Consolidated and Condensed Consolidated Financial Statements		6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		27
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		50
Item 4.	Controls and Procedures		50
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		52
Item 1A.	Risk Factors		52
Item 6.	Exhibits		53
Signatures			55

PART I. FINANCIAL INFORMATION

ITEM 1. UNAUDITED CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in millions, except share count and per share data)

	March 31, 2023		December 31, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,803.0	$	2,028.4
Restricted cash	122.4		112.3
Accounts receivable, net	705.4		758.3
Prepaid and other current assets	819.3		723.3
Total current assets	3,450.1		3,622.3
PROPERTY AND EQUIPMENT, net	19,843.3		19,998.3
GOODWILL	12,997.2		12,956.7
OTHER INTANGIBLE ASSETS, net	17,637.1		17,983.3
DEFERRED TAX ASSET	107.4		129.2
DEFERRED RENT ASSET	3,160.3		3,039.1
RIGHT-OF-USE ASSET	8,952.4		8,918.9
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS	669.9		546.7
TOTAL	$	66,817.7	$	67,194.5
LIABILITIES
CURRENT LIABILITIES:
Accounts payable	$	206.0	$	218.6
Accrued expenses	1,171.6		1,344.2
Distributions payable	745.3		745.3
Accrued interest	208.5		261.0
Current portion of operating lease liability	790.1		788.9
Current portion of long-term obligations	3,856.4		4,514.2
Unearned revenue	554.2		439.7
Total current liabilities	7,532.1		8,311.9
LONG-TERM OBLIGATIONS	34,685.6		34,156.0
OPERATING LEASE LIABILITY	7,576.9		7,591.9
ASSET RETIREMENT OBLIGATIONS	2,093.5		2,047.4
DEFERRED TAX LIABILITY	1,505.6		1,492.0
OTHER NON-CURRENT LIABILITIES	1,173.7		1,186.8
Total liabilities	54,567.4		54,786.0
COMMITMENTS AND CONTINGENCIES
EQUITY (shares in thousands):
Common stock: $.01 par value; 1,000,000 shares authorized; 477,042 and 476,623 shares issued; and 466,038 and 465,619 shares outstanding, respectively	4.8		4.8
Additional paid-in capital	14,725.6		14,689.0
Distributions in excess of earnings	(2,496.5)		(2,101.9)
Accumulated other comprehensive loss	(5,526.1)		(5,718.3)
Treasury stock (11,004 shares at cost)	(1,301.2)		(1,301.2)
Total American Tower Corporation equity	5,406.6		5,572.4
Noncontrolling interests	6,843.7		6,836.1
Total equity	12,250.3		12,408.5
TOTAL	$	66,817.7	$	67,194.5

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

1

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except share and per share data)

	Three Months Ended March 31,
	2023		2022
REVENUES:
Property	$	2,714.5	$	2,600.8
Services	52.7		59.5
Total operating revenues	2,767.2		2,660.3
OPERATING EXPENSES:
Costs of operations (exclusive of items shown separately below):
Property	787.0		771.5
Services	19.1		27.9
Depreciation, amortization and accretion	794.1		815.8
Selling, general, administrative and development expense	263.9		293.9
Other operating expenses	127.5		26.1
Total operating expenses	1,991.6		1,935.2
OPERATING INCOME	775.6		725.1
OTHER INCOME (EXPENSE):
Interest income	30.8		9.9
Interest expense	(340.2)		(262.4)
Other (expense) income (including foreign currency (losses) gains of $(84.1) and $242.1, respectively)	(97.8)		252.6
Total other (expense) income	(407.2)		0.1
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	368.4		725.2
Income tax provision	(53.4)		(22.5)
NET INCOME	315.0		702.7
Net loss attributable to noncontrolling interests	20.8		9.0
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON STOCKHOLDERS	$	335.8	$	711.7
NET INCOME PER COMMON SHARE AMOUNTS:
Basic net income attributable to American Tower Corporation common stockholders	$	0.72	$	1.56
Diluted net income attributable to American Tower Corporation common stockholders	$	0.72	$	1.56
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in thousands):
BASIC	465,741		455,946
DILUTED	466,810		457,211

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

2

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(in millions)

	Three Months Ended March 31,
	2023		2022
Net income	$	315.0	$	702.7
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax (benefit) expense of $(0.0) and $0.0, respectively	232.1		94.4
Other comprehensive income	232.1		94.4
Comprehensive income	547.1		797.1
Comprehensive (income) loss attributable to noncontrolling interests	(19.1)		100.5
Comprehensive income attributable to American Tower Corporation stockholders	$	528.0	$	897.6

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

3

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

	Three Months Ended March 31,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	315.0	$	702.7
Adjustments to reconcile net income to cash provided by operating activities
Depreciation, amortization and accretion	794.1		815.8
Stock-based compensation expense	65.5		56.7
Other non-cash items reflected in statements of operations	235.3		(232.8)
Increase in net deferred rent balances	(112.0)		(109.3)
Right-of-use asset and Operating lease liability, net	(44.9)		(26.6)
Changes in unearned revenue	96.2		(201.4)
Increase in assets	(170.1)		(171.5)
Decrease in liabilities	(108.6)		(170.0)
Cash provided by operating activities	1,070.5		663.6
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for purchase of property and equipment and construction activities	(461.9)		(386.1)
Payments for acquisitions, net of cash acquired	(60.9)		(128.6)
Proceeds from sale of short-term investments and other non-current assets	3.1		3.2
Deposits and other	242.9		(1.6)
Cash used for investing activities	(276.8)		(513.1)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings, net	154.1		—
Borrowings under credit facilities	1,745.0		2,250.0
Proceeds from issuance of senior notes, net	1,494.2		—
Proceeds from issuance of securities in securitization transaction	1,300.0		—
Repayments of notes payable, credit facilities, senior notes, secured debt, term loans and finance leases	(4,897.9)		(1,817.1)
Distributions to noncontrolling interest holders	(11.2)		(0.1)
Proceeds from stock options	1.8		8.0
Distributions paid on common stock	(733.6)		(641.2)
Deferred financing costs and other financing activities	(65.0)		(50.5)
Cash used for financing activities	(1,012.6)		(250.9)
Net effect of changes in foreign currency exchange rates on cash and cash equivalents, and restricted cash	3.6		28.5
NET DECREASE IN CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH	(215.3)		(71.9)
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	2,140.7		2,343.3
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$	1,925.4	$	2,271.4
CASH PAID FOR INCOME TAXES (NET OF REFUNDS OF $8.4 AND $0.3, RESPECTIVELY)	$	62.3	$	99.8
CASH PAID FOR INTEREST	$	388.9	$	304.0
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchases of property and equipment under finance leases and perpetual easements	$	7.3	$	1.8
Decrease in accounts payable and accrued expenses for purchases of property and equipment and construction activities	$	(71.7)	$	(46.9)

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

4

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(in millions, share counts in thousands)

	Common Stock			Treasury Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Distributions in Excess of Earnings		Noncontrolling Interests		Total Equity
Three Months Ended March 31, 2022 and 2023	Issued Shares	Amount		Shares	Amount
BALANCE, JANUARY 1, 2022	466,687	$	4.7	(10,915)	$	(1,282.4)	$	12,240.2	$	(4,738.9)	$	(1,142.4)	$	3,988.4	$	9,069.6
Stock-based compensation related activity	505	0.0		—	—		25.9		—		—		—		25.9
Foreign currency translation adjustment, net of tax	—	—		—	—		—		185.9		—		(91.5)		94.4
Distributions to noncontrolling interest holders	—	—		—	—		—		—		—		(0.2)		(0.2)
Common stock distributions declared	—	—		—	—		—		—		(641.7)		—		(641.7)
Net income (loss)	—	—		—	—		—		—		711.7		(9.0)		702.7
BALANCE, MARCH 31, 2022	467,192	$	4.7	(10,915)	$	(1,282.4)	$	12,266.1	$	(4,553.0)	$	(1,072.4)	$	3,887.7	$	9,250.7
BALANCE, JANUARY 1, 2023	476,623	$	4.8	(11,004)	$	(1,301.2)	$	14,689.0	$	(5,718.3)	$	(2,101.9)	$	6,836.1	$	12,408.5
Stock-based compensation related activity	419	0.0		—	—		36.6		—		—		—		36.6
Foreign currency translation adjustment, net of tax	—	—		—	—		—		192.2		—		39.9		232.1
Distributions to noncontrolling interest holders	—	—		—	—		—		—		—		(11.5)		(11.5)
Common stock distributions declared	—	—		—	—		—		—		(730.4)		—		(730.4)
Net income (loss)	—	—		—	—		—		—		335.8		(20.8)		315.0
BALANCE, MARCH 31, 2023	477,042	$	4.8	(11,004)	$	(1,301.2)	$	14,725.6	$	(5,526.1)	$	(2,496.5)	$	6,843.7	$	12,250.3

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

5

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

1.    BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The accompanying consolidated and condensed consolidated financial statements have been prepared by American Tower Corporation (together with its subsidiaries, “ATC” or the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The financial information included herein is unaudited. However, the Company believes that all adjustments, which are of a normal and recurring nature, considered necessary for a fair presentation of its financial position and results of operations for such periods have been included herein. The consolidated and condensed consolidated financial statements and related notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”). The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the entire year.

Principles of Consolidation and Basis of Presentation—The accompanying consolidated and condensed consolidated financial statements include the accounts of the Company and those entities in which it has a controlling interest. Investments in entities that the Company does not control are accounted for using the equity method or as investments in equity securities, depending upon the Company’s ability to exercise significant influence over operating and financial policies. All intercompany accounts and transactions have been eliminated.

As of March 31, 2023, the Company holds (i) a 52% controlling interest in subsidiaries whose holdings consist of the Company’s operations in France, Germany, Poland and Spain (such subsidiaries, collectively, “ATC Europe”) (Allianz and CDPQ (each as defined in note 11) hold the noncontrolling interests), (ii) a 51% controlling interest in a joint venture whose holdings consist of the Company’s operations in Bangladesh (Confidence Tower Holdings Ltd. (“Confidence Group”) holds the noncontrolling interests) and (iii) a common equity interest of approximately 72% in the Company’s U.S. data center business (Stonepeak (as defined and further discussed in note 11) holds approximately 28% of the outstanding common equity and 100% of the outstanding mandatorily convertible preferred equity). As of March 31, 2023, ATC Europe holds an 87% and an 83% controlling interest in subsidiaries that consist of the Company’s operations in Germany and Spain, respectively (PGGM holds the noncontrolling interests). See note 11 for a discussion of changes to the Company’s noncontrolling interests during the three months ended March 31, 2023 and 2022.

Sale of Mexico Fiber— On March 29, 2023, the Company completed the sale of one of its subsidiaries in Mexico that held fiber assets (“Mexico Fiber”) for total consideration of $252.5 million, resulting in a loss on the sale of $80.0 million, which was included in Other operating expenses in the accompanying consolidated statements of operations. As a result of the transaction, the Company disposed of $20.7 million of goodwill based on the relative fair value of Mexico Fiber and the portion of the applicable goodwill reporting unit that was expected to be retained. Prior to the divestiture, Mexico Fiber’s operating results were included within the Latin America property segment. The divestiture did not qualify for presentation as a discontinued operation.

Reportable Segments—The Company reports its results in seven segments – U.S. & Canada property, Asia-Pacific property, Africa property, Europe property, Latin America property, Data Centers and Services, which are discussed further in note 15.

Significant Accounting Policies—The Company’s significant accounting policies are described in note 1 to the Company’s consolidated financial statements included in the 2022 Form 10-K. There have been no material changes to the Company’s significant accounting policies during the three months ended March 31, 2023.

Cash and Cash Equivalents and Restricted Cash—The reconciliation of cash and cash equivalents and restricted cash reported within the applicable balance sheet that sum to the total of the same such amounts shown in the statements of cash flows is as follows:

	Three Months Ended March 31,
	2023		2022
Cash and cash equivalents	$	1,803.0	$	1,941.5
Restricted cash	122.4		329.9
Total cash, cash equivalents and restricted cash	$	1,925.4	$	2,271.4

Restricted cash as of March 31, 2022 includes advance payments from a customer received during the year ended December 31, 2021.

6

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Revenue—The Company’s revenue is derived from leasing the right to use its communications sites, land on which sites are located and the space in its data center facilities (the “lease component”) and from the reimbursement of costs incurred by the Company in operating the communications sites and data center facilities and supporting its customers’ equipment as well as other services and contractual rights (the “non-lease component”). Most of the Company’s revenue is derived from leasing arrangements and is accounted for as lease revenue unless the timing and pattern of revenue recognition of the non-lease component differs from the lease component. If the timing and pattern of the non-lease component revenue recognition differs from that of the lease component, the Company separately determines the stand-alone selling prices and pattern of revenue recognition for each performance obligation. Revenue related to distributed antenna system (“DAS”) networks and fiber and other related assets results from agreements with customers that are generally not accounted for as leases.

Non-lease property revenue—Non-lease property revenue consists primarily of revenue generated from DAS networks, fiber and other property related revenue. DAS networks and fiber arrangements generally require that the Company provide the tenant the right to use available capacity on the applicable communications infrastructure. Performance obligations are satisfied over time for the duration of the arrangements. Non-lease property revenue also includes revenue generated from interconnection offerings in the Company’s data center facilities. Interconnection offerings are generally contracted on a month-to-month basis and are cancellable by the Company or the data center customer at any time. Performance obligations are satisfied over time for the duration of the arrangements. Other property related revenue streams, which include site inspections, are not material on either an individual or consolidated basis. There were no material changes in the receivables, contract assets and contract liabilities from contracts with customers for the three months ended March 31, 2023.

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

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

Three Months Ended March 31, 2023	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	71.0	$	2.3	$	6.7	$	3.4	$	41.3	$	28.3	$	153.0
Services revenue	52.7		—		—		—		—		—		52.7
Total non-lease revenue	$	123.7	$	2.3	$	6.7	$	3.4	$	41.3	$	28.3	$	205.7
Property lease revenue	1,216.6		248.8		310.3		188.3		422.8		174.7		2,561.5
Total revenue	$	1,340.3	$	251.1	$	317.0	$	191.7	$	464.1	$	203.0	$	2,767.2

Three Months Ended March 31, 2022	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	74.2	$	3.0	$	7.1	$	2.4	$	37.3	$	25.8	$	149.8
Services revenue	59.5		—		—		—		—		—		59.5
Total non-lease revenue	$	133.7	$	3.0	$	7.1	$	2.4	$	37.3	$	25.8	$	209.3
Property lease revenue	1,158.2		295.5		260.7		196.1		382.0		158.5		2,451.0
Total revenue	$	1,291.9	$	298.5	$	267.8	$	198.5	$	419.3	$	184.3	$	2,660.3

Property revenue for the three months ended March 31, 2023 and 2022 includes straight-line revenue of $112.0 million and $109.4 million, respectively.

The Company actively monitors the creditworthiness of its customers. In recognizing customer revenue, the Company assesses the collectibility of both the amounts billed and the portion recognized in advance of billing on a straight-line basis. This assessment takes customer credit risk and business and industry conditions into consideration to ultimately determine the collectibility of the amounts billed. To the extent the amounts, based on management’s estimates, may not be collectible, revenue recognition is deferred until such point as collectibility is determined to be reasonably assured.

7

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

During the three months ended March 31, 2023, the Company deferred recognition of revenue of approximately $33.0 million related to a customer in India.

2.    PREPAID AND OTHER CURRENT ASSETS

Prepaid and other current assets consisted of the following:

	As of
	March 31, 2023		December 31, 2022
Prepaid assets	$	95.3	$	100.7
Prepaid income tax	153.0		139.3
Unbilled receivables	308.5		283.8
Value added tax and other consumption tax receivables	58.2		83.6
Other miscellaneous current assets (1)	204.3		115.9
Prepaid and other current assets	$	819.3	$	723.3

_______________

(1)Includes short-term portion of the VIL OCDs (as defined and further discussed in note 7).

3.    LEASES

The Company determines if an arrangement is a lease at the inception of the agreement. The Company considers an arrangement to be a lease if it conveys the right to control the use of the communications infrastructure or ground space underneath communications infrastructure for a period of time in exchange for consideration. The Company is both a lessor and a lessee.

During the three months ended March 31, 2023, the Company made no changes to the methods described in note 4 to its consolidated financial statements included in the 2022 Form 10-K. As of March 31, 2023, the Company does not have any material related party leases as either a lessor or a lessee. To the extent there are any intercompany leases, these are eliminated in consolidation.

Lessor— Historically, the Company has been able to successfully renew its applicable leases as needed to ensure continuation of its revenue. Accordingly, the Company assumes that it will have access to the communications infrastructure or ground space underlying its sites when calculating future minimum rental receipts through the end of the respective terms. Future minimum rental receipts expected under non-cancellable operating lease agreements as of March 31, 2023 were as follows:

Fiscal Year	Amount (1) (2)
Remainder of 2023	$	5,937.0
2024	7,616.7
2025	7,157.0
2026	6,667.0
2027	6,521.2
Thereafter	28,680.8
Total	$	62,579.7

_______________

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

(2)Balances represent contractual amounts owned with no adjustments made for expected collectibility.

Lessee—The Company assesses its right-of-use asset and other lease-related assets for impairment, as described in note 1 to the Company’s consolidated financial statements included in the 2022 Form 10-K. There were no material impairments recorded related to these assets during the three months ended March 31, 2023 and 2022.

The Company leases certain land, buildings, equipment and office space under operating leases and land and improvements, towers, equipment and vehicles under finance leases. As of March 31, 2023, operating lease assets were included in Right-of-use asset and finance lease assets were included in Property and equipment, net in the consolidated balance sheet. During the three months ended March 31, 2023, other than leases acquired in connection with acquisitions, there were no material changes in the terms and provisions of the Company’s operating leases in which the

8

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Company is a lessee. There were no material changes in finance lease assets and liabilities during the three months ended March 31, 2023.

Information about other lease-related balances is as follows:

	As of
	March 31, 2023		December 31, 2022
Operating leases:
Right-of-use asset	$	8,952.4	$	8,918.9
Current portion of lease liability	$	790.1	$	788.9
Lease liability	7,576.9		7,591.9
Total operating lease liability	$	8,367.0	$	8,380.8

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

	As of
	March 31, 2023		December 31, 2022
Operating leases:
Weighted-average remaining lease term (years)	12.1		12.2
Weighted-average incremental borrowing rate	5.5	%	5.3	%

The following table sets forth the components of lease cost:

	Three Months Ended March 31,
	2023		2022
Operating lease cost	$	306.7	$	306.5
Variable lease costs not included in lease liability (1)	109.1		101.4

______________

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

Supplemental cash flow information is as follows:

	Three Months Ended March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(342.6)	$	(336.3)
Non-cash items:
New operating leases (1)	$	56.5	$	58.6
Operating lease modifications and reassessments (2)	$	102.9	$	(11.2)

______________

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

(2)For the three months ended March 31, 2022, includes a reduction of the operating lease liability due to purchase accounting measurement period adjustments.

As of March 31, 2023, the Company does not have material operating or financing leases that have not yet commenced.

9

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Maturities of operating lease liabilities as of March 31, 2023 were as follows:

Fiscal Year	Operating Lease (1)
Remainder of 2023	$	892.1
2024	1,096.6
2025	1,036.4
2026	976.4
2027	912.6
Thereafter	6,515.1
Total lease payments	11,429.2
Less amounts representing interest	(3,062.2)
Total lease liability	8,367.0
Less current portion of lease liability	790.1
Non-current lease liability	$	7,576.9

_______________

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

4.    GOODWILL AND OTHER INTANGIBLE ASSETS

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

	Property												Services		Total
	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers
Balance as of January 1, 2023	$	4,637.5	$	889.2	$	548.5	$	3,044.0	$	915.5	$	2,920.0	$	2.0	$	12,956.7
Other (1)	—		—		—		—		(20.7)		—		—		(20.7)
Effect of foreign currency translation	0.1		5.8		(18.7)