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, 2024.

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

Commission File Number: 001-14195

AMERICAN TOWER CORPORATION

(Exact name of registrant as specified in its charter)

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

116 Huntington Avenue

Boston, Massachusetts 02116

(Address of principal executive offices)

Telephone Number (617) 375-7500

(Registrant’s telephone number, including area code)

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

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

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 23, 2024, there were 466,975,019 shares of common stock outstanding.

AMERICAN TOWER CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2024

		Page Nos.
PART I. FINANCIAL INFORMATION
Item 1.	Unaudited Consolidated and Condensed Consolidated Financial Statements		1
	Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023		1
	Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023		2
	Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023		3
	Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023		4
	Consolidated Statements of Equity for the three months ended March 31, 2024 and 2023		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		49
Item 4.	Controls and Procedures		49
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		50
Item 1A.	Risk Factors		50
Item 5.	Other Information		50
Item 6.	Exhibits		51
Signatures			53

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, 2024		December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	2,389.1	$	1,973.3
Restricted cash	127.6		120.1
Accounts receivable, net	738.4		669.7
Prepaid and other current assets	984.6		946.9
Total current assets	4,239.7		3,710.0
PROPERTY AND EQUIPMENT, net	20,094.2		19,788.8
GOODWILL	12,556.8		12,639.0
OTHER INTANGIBLE ASSETS, net	16,119.3		16,520.7
DEFERRED TAX ASSET	161.2		179.1
DEFERRED RENT ASSET	3,596.8		3,521.8
RIGHT-OF-USE ASSET	9,199.8		8,878.8
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS	711.2		789.4
TOTAL	$	66,679.0	$	66,027.6
LIABILITIES
CURRENT LIABILITIES:
Accounts payable	$	182.1	$	258.7
Accrued expenses	1,134.1		1,280.6
Distributions payable	776.7		906.2
Accrued interest	309.9		387.0
Current portion of operating lease liability	715.2		794.6
Current portion of long-term obligations	3,067.6		3,187.5
Unearned revenue	544.2		434.7
Total current liabilities	6,729.8		7,249.3
LONG-TERM OBLIGATIONS	36,191.9		35,734.0
OPERATING LEASE LIABILITY	7,866.3		7,438.7
ASSET RETIREMENT OBLIGATIONS	2,607.1		2,158.2
DEFERRED TAX LIABILITY	1,394.4		1,361.4
OTHER NON-CURRENT LIABILITIES	1,227.8		1,220.6
Total liabilities	56,017.3		55,162.2
COMMITMENTS AND CONTINGENCIES
EQUITY (shares in thousands):
Common stock: $0.01 par value; 1,000,000 shares authorized; 477,968 and 477,300 shares issued; and 466,964 and 466,296 shares outstanding, respectively	4.8		4.8
Additional paid-in capital	14,903.4		14,872.9
Distributions in excess of earnings	(3,481.2)		(3,638.8)
Accumulated other comprehensive loss	(6,078.0)		(5,739.5)
Treasury stock (11,004 shares at cost)	(1,301.2)		(1,301.2)
Total American Tower Corporation equity	4,047.8		4,198.2
Noncontrolling interests	6,613.9		6,667.2
Total equity	10,661.7		10,865.4
TOTAL	$	66,679.0	$	66,027.6

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,
	2024		2023
REVENUES:
Property	$	2,803.9	$	2,714.5
Services	30.2		52.7
Total operating revenues	2,834.1		2,767.2
OPERATING EXPENSES:
Costs of operations (exclusive of items shown separately below):
Property	774.4		787.0
Services	13.9		19.1
Depreciation, amortization and accretion	549.4		794.1
Selling, general, administrative and development expense	257.0		263.9
Other operating expenses	2.8		127.5
Total operating expenses	1,597.5		1,991.6
OPERATING INCOME	1,236.6		775.6
OTHER INCOME (EXPENSE):
Interest income	48.0		30.8
Interest expense	(366.7)		(340.2)
Other income (expense) (including foreign currency gains (losses) of $127.6 and $(84.1), respectively)	113.0		(97.8)
Total other expense	(205.7)		(407.2)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	1,030.9		368.4
Income tax provision	(109.2)		(53.4)
NET INCOME	921.7		315.0
Net (income) loss attributable to noncontrolling interests	(4.3)		20.8
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON STOCKHOLDERS	$	917.4	$	335.8
NET INCOME PER COMMON SHARE AMOUNTS:
Basic net income attributable to American Tower Corporation common stockholders	$	1.97	$	0.72
Diluted net income attributable to American Tower Corporation common stockholders	$	1.96	$	0.72
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in thousands):
BASIC	466,519		465,741
DILUTED	467,660		466,810

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

2

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

	Three Months Ended March 31,
	2024		2023
Net income	$	921.7	$	315.0
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax benefit of $(0.2) and $(0.0), respectively	(431.2)		232.1
Other comprehensive (loss) income	(431.2)		232.1
Comprehensive income	490.5		547.1
Comprehensive loss (income) attributable to noncontrolling interests	88.4		(19.1)
Comprehensive income attributable to American Tower Corporation stockholders	$	578.9	$	528.0

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,
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	921.7	$	315.0
Adjustments to reconcile net income to cash provided by operating activities
Depreciation, amortization and accretion	549.4		794.1
Stock-based compensation expense	64.9		65.5
Other non-cash items reflected in statements of operations	(41.8)		235.3
Increase in net deferred rent balances	(79.0)		(112.0)
Right-of-use asset and Operating lease liability, net	8.8		(44.9)
Changes in unearned revenue	130.4		96.2
Increase in assets	(99.3)		(170.1)
Decrease in liabilities	(171.5)		(108.6)
Cash provided by operating activities	1,283.6		1,070.5
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for purchase of property and equipment and construction activities	(396.7)		(461.9)
Payments for acquisitions, net of cash acquired	(44.7)		(60.9)
Proceeds from sale of short-term investments and other non-current assets	6.0		3.1
Deposits and other	(0.7)		242.9
Cash used for investing activities	(436.1)		(276.8)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings, net	8.7		154.1
Borrowings under credit facilities	2,790.5		1,745.0
Proceeds from issuance of senior notes, net	1,293.0		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	(3,568.4)		(4,897.9)
Distributions to noncontrolling interest holders	(160.6)		(11.2)
Contributions from noncontrolling interest holders	101.4		—
Proceeds from stock options	13.9		1.8
Distributions paid on common stock	(802.1)		(733.6)
Deferred financing costs and other financing activities	(66.6)		(65.0)
Cash used for financing activities	(390.2)		(1,012.6)
Net effect of changes in foreign currency exchange rates on cash and cash equivalents, and restricted cash	(34.0)		3.6
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH	423.3		(215.3)
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	2,093.4		2,140.7
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$	2,516.7	$	1,925.4
CASH PAID FOR INCOME TAXES (NET OF REFUNDS OF $3.4 AND $8.4, RESPECTIVELY)	$	66.5	$	62.3
CASH PAID FOR INTEREST	$	442.3	$	388.9
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchases of property and equipment under finance leases and perpetual easements	$	3.6	$	7.3
Decrease in accounts payable and accrued expenses for purchases of property and equipment and construction activities	$	(54.6)	$	(71.7)
Distributions to noncontrolling interest holders	$	(37.5)	$	—
Contributions from noncontrolling interest holders	$	37.5	$	—

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, 2023 and 2024	Issued Shares	Amount		Shares	Amount
BALANCE, JANUARY 1, 2023	476,623	$	4.8	(11,004)	$	(1,301.2)	$	14,689.0	$	(5,718.3)	$	(2,101.9)	$	6,836.1	$	12,408.5
Stock-based compensation related activity	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
BALANCE, JANUARY 1, 2024	477,300	$	4.8	(11,004)	$	(1,301.2)	$	14,872.9	$	(5,739.5)	$	(3,638.8)	$	6,667.2	$	10,865.4
Stock-based compensation related activity	668	0.0		—	—		30.5		—		—		—		30.5
Foreign currency translation adjustment, net of tax	—	—		—	—		—		(338.5)		—		(92.7)		(431.2)
Contributions from noncontrolling interest holders	—	—		—	—		—		—		—		138.9		138.9
Distributions to noncontrolling interest holders	—	—		—	—		—		—		—		(103.8)		(103.8)
Common stock distributions declared	—	—		—	—		—		—		(759.8)		—		(759.8)
Net income	—	—		—	—		—		—		917.4		4.3		921.7
BALANCE, MARCH 31, 2024	477,968	$	4.8	(11,004)	$	(1,301.2)	$	14,903.4	$	(6,078.0)	$	(3,481.2)	$	6,613.9	$	10,661.7

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, 2023 (the “2023 Form 10-K”). The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the entire year.

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

As of March 31, 2024, the Company holds (i) a 52% controlling interest in subsidiaries whose holdings consist of the Company’s operations in France, Germany and Spain (such subsidiaries collectively, “ATC Europe”) (Allianz and CDPQ (each as defined in note 11) hold the noncontrolling interests), (ii) a 51% controlling interest in a joint venture whose holdings consist of the Company’s operations in Bangladesh (Confidence Tower Holdings Ltd. (“Confidence Group”) holds the noncontrolling interest) and (iii) a controlling common equity interest of approximately 72% in the Company’s U.S. data center business (Stonepeak (as defined and further discussed in note 11) holds approximately 28% of the outstanding common equity and 100% of the outstanding mandatorily convertible preferred equity). As of March 31, 2024, ATC Europe holds an 87% and an 83% controlling interest in subsidiaries that consist of the Company’s operations in Germany and Spain, respectively (PGGM holds the noncontrolling interests). See note 11 for a discussion of changes to the Company’s noncontrolling interests during the three months ended March 31, 2024 and 2023.

Pending ATC TIPL Transaction—On January 4, 2024, the Company, through its subsidiaries, ATC Asia Pacific Pte. Ltd. and ATC Telecom Infrastructure Private Limited (“ATC TIPL”), entered into an agreement with Data Infrastructure Trust (“DIT”), an infrastructure investment trust sponsored by an affiliate of Brookfield Asset Management, pursuant to which DIT will acquire a 100% ownership interest in ATC TIPL (the “Pending ATC TIPL Transaction”). Subject to certain pre-closing terms, total aggregate consideration would potentially represent up to approximately 210 billion Indian Rupees (“INR”) (approximately $2.5 billion), including the value of the VIL OCDs and the VIL Shares (each as defined and further discussed in note 7), payments on certain existing customer receivables, the repayment of existing intercompany debt and the repayment, or assumption, of the Company’s existing term loan in India, by DIT. During the three months ended March 31, 2024, ATC TIPL distributed approximately 9,603 million INR (approximately $115.1 million) to the Company, which will be deducted from the total aggregate consideration received at closing. The Company will retain the full economic benefit associated with the VIL OCDs, the VIL Shares and rights to payments on certain existing customer receivables. The Pending ATC TIPL Transaction is expected to close in the second half of 2024, subject to customary closing conditions, including government and regulatory approval.

Reportable Segments—The Company reports its results in seven segments – U.S. & Canada property, Asia-Pacific property, Africa property, Europe property, Latin America property, Data Centers and Services, which are discussed further in note 14.

Significant Accounting Policies—The Company’s significant accounting policies are described in note 1 to the Company’s consolidated financial statements included in the 2023 Form 10-K. There have been no material changes to the Company’s significant accounting policies during the three months ended March 31, 2024, other than those noted below.

Property and Equipment—The Company finalized its review of the estimated useful lives of its tower assets during the three months ended March 31, 2024. The Company now has over 20 years of operating history, and determined that it should modify its current estimates for asset lives based on its historical operating experience. The Company retained an independent consultant to assist the Company in completing this review and analysis. The Company previously depreciated its towers on a straight-line basis over the shorter of the term of the underlying ground lease (including

6

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

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

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

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

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

	Three Months Ended March 31,
	2024		2023
Cash and cash equivalents	$	2,389.1	$	1,803.0
Restricted cash	127.6		122.4
Total cash, cash equivalents and restricted cash	$	2,516.7	$	1,925.4

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

7

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Non-lease property revenue—Non-lease property revenue consists primarily of revenue generated from DAS networks, fiber and other property related revenue. DAS networks and fiber arrangements generally require that the Company provide the tenant the right to use available capacity on the applicable communications infrastructure. Performance obligations are satisfied over time for the duration of the arrangements. Non-lease property revenue also includes revenue generated from interconnection offerings in the Company’s data center facilities. Interconnection offerings are generally contracted on a month-to-month basis and are cancellable by the Company or the data center customer at any time. Performance obligations are satisfied over time for the duration of the arrangements. Other property related revenue streams, which include site inspections, are not material on either an individual or consolidated basis. There were no material changes in the receivables, contract assets and contract liabilities from contracts with customers for the three months ended March 31, 2024.

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

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

Three Months Ended March 31, 2024	U.S. & Canada		Asia-Pacific		Africa		Europe		Latin America		Data Centers		Total
Non-lease property revenue	$	72.9	$	2.2	$	6.1	$	3.5	$	28.7	$	31.6	$	145.0
Services revenue	30.2		—		—		—		—		—		30.2
Total non-lease revenue	$	103.1	$	2.2	$	6.1	$	3.5	$	28.7	$	31.6	$	175.2
Property lease revenue	1,237.8		324.4		285.9		201.0		416.8		193.0		2,658.9
Total revenue	$	1,340.9	$	326.6	$	292.0	$	204.5	$	445.5	$	224.6	$	2,834.1

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

Property revenue for the three months ended March 31, 2024 and 2023 includes straight-line revenue of $79.0 million and $112.0 million, respectively.

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

During the three months ended March 31, 2023, the Company deferred recognition of revenue of approximately $33.0 million related to a customer in India. During the three months ended March 31, 2024, the Company recognized approximately $29.0 million of this previously deferred revenue.

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

8

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

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

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

2.    PREPAID AND OTHER CURRENT ASSETS

Prepaid and other current assets consisted of the following:

	As of
	March 31, 2024		December 31, 2023
Prepaid assets	$	98.9	$	93.4
Prepaid income tax	127.3		102.9
Unbilled receivables	383.9		323.2
Value added tax and other consumption tax receivables	57.9		79.8
Other miscellaneous current assets (1)	316.6		347.6
Prepaid and other current assets	$	984.6	$	946.9

_______________

(1)Includes the VIL OCDs and the VIL Shares (each 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, 2024, the Company made no changes to the methods described in note 4 to its consolidated financial statements included in the 2023 Form 10-K. As of March 31, 2024, the Company does not have any material related party leases as either a lessor or a lessee. To the extent there are any intercompany leases, these are eliminated in consolidation.

If incentives are present in the Company’s leases, they are evaluated to determine proper treatment and, to the extent present, are recorded in Other current assets and Other non-current assets in the consolidated balance sheets and amortized on a straight line basis over the corresponding lease term as a non-cash reduction to revenue. As of March 31, 2024, the remaining weighted average amortization period of the Company’s lease incentives was 10 years. As of March 31, 2024, Other current assets and Other non-current assets include $35.5 million and $339.4 million, respectively, for lease incentives.

9

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

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, 2024 were as follows:

Fiscal Year	Amount (1) (2)
Remainder of 2024	$	6,292.1
2025	7,870.7
2026	7,385.8
2027	7,173.0
2028	5,857.2
Thereafter	25,221.6
Total	$	59,800.4

_______________

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

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

Lessee—The Company assesses its right-of-use asset and other lease-related assets for impairment, as described in note 1 to the Company’s consolidated financial statements included in the 2023 Form 10-K. There were no material impairments recorded related to these assets during the three months ended March 31, 2024 and 2023.

The Company leases certain land, buildings, equipment and office space under operating leases and land and improvements, towers, equipment and vehicles under finance leases. As of March 31, 2024, 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, 2024, 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 Company is a lessee, other than those related to the change in estimated useful lives as described in note 1. As a result of the change in estimated useful lives of its assets, the Company reviewed its lease portfolio to determine whether additional renewal options were likely to be exercised. The Company concluded that these incremental renewals were lease modifications and has accounted for them accordingly. The extension of the asset lives resulted in an approximately $515 million increase in the right of use asset, as additional renewal options may be included, with an offsetting adjustment made to increase the related operating lease liability. There were no material changes in finance lease assets and liabilities during the three months ended March 31, 2024.

Information about other lease-related balances is as follows:

	As of
	March 31, 2024		December 31, 2023
Operating leases:
Right-of-use asset	$	9,199.8	$	8,878.8
Current portion of lease liability	$	715.2	$	794.6
Lease liability	7,866.3		7,438.7
Total operating lease liability	$	8,581.5	$	8,233.3

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

	As of
	March 31, 2024		December 31, 2023
Operating leases:
Weighted-average remaining lease term (years) (1)	13.7		11.6
Weighted-average incremental borrowing rate	6.7	%	5.8	%

______________

(1)As of March 31, 2024, reflects the change in estimated useful lives as described in note 1.

The following table sets forth the components of lease cost:

10

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	326.4	$	306.7
Variable lease costs not included in lease liability (1)	89.2		109.1

______________

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

Supplemental cash flow information is as follows:

	Three Months Ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(365.9)	$	(342.6)
Non-cash items:
New operating leases (1)	$	39.1	$	56.5
Operating lease modifications and reassessments (2)	$	593.9	$	102.9

______________

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

(2)For the three months ended March 31, 2024, reflects the change in estimated useful lives as described in note 1.

As of March 31, 2024, the Company does not have material operating or financing leases that have not yet commenced.

Maturities of operating lease liabilities as of March 31, 2024 were as follows:

Fiscal Year	Operating Lease (1)
Remainder of 2024	$	880.2
2025	1,116.3
2026	1,062.8
2027	1,003.8
2028	943.0
Thereafter	8,346.5
Total lease payments	13,352.6
Less amounts representing interest	(4,771.1)
Total lease liability	8,581.5
Less current portion of lease liability	715.2
Non-current lease liability	$	7,866.3

_______________

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

11

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

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, 2024	$	4,638.6	$	562.7	$	497.7	$	3,051.9	$	966.1	$	2,920.0	$	2.0	$	12,639.0
Effect of foreign currency translation	(1.1)		(1.3)		1.6		(68.8)		(12.6)		—		—		(82.2)
Balance as of March 31, 2024	$	4,637.5	$	561.4	$	499.3	$	2,983.1	$	953.5	$	2,920.0	$	2.0	$	12,556.8

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

		As of March 31, 2024						As of December 31, 2023
	Estimated Useful Lives (years) (1)	Gross Carrying Value		Accumulated Amortization		Net Book Value		Gross Carrying Value		Accumulated Amortization		Net Book Value
Acquired network location intangibles (2)	Up to 30	$	5,930.6	$	(2,795.5)	$	3,135.1	$	5,981.5	$	(2,775.8)	$	3,205.7
Acquired tenant-related intangibles	Up to 30	18,728.8		(6,815.0)		11,913.8		18,894.5		(6,698.6)		12,195.9
Acquired licenses and other intangibles	2-30	1,535.5		(465.1)		1,070.4		1,561.1		(442.0)		1,119.1
Total other intangible assets		$	26,194.9	$	(10,075.6)	$	16,119.3	$	26,437.1	$	(9,916.4)	$	16,520.7

_______________

(1)As of March 31, 2024, reflects the change in estimated useful lives as described in note 1.

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

The acquired network location intangibles represent the value to the Company of the incremental revenue growth that could potentially be obtained from leasing the excess capacity on acquired tower communications infrastructure. The acquired tenant-related intangibles typically represent the value to the Company of tenant contracts and relationships in place at the time of an acquisition or similar transaction, including assumptions regarding estimated renewals. Other intangibles represent the value of acquired licenses, trade name and in place leases. In place lease value represents the fair value of costs avoided in securing data center customers, including vacancy periods, legal costs and commissions. In place lease value also includes assumptions on similar costs avoided upon the renewal or extension of existing leases on a basis consistent with occupancy assumptions used in the fair value of other assets.

The Company amortizes its acquired intangible assets on a straight-line basis over their estimated useful lives. As of March 31, 2024, the remaining weighted average amortization period of the Company’s intangible assets was 20 years. Amortization of intangible assets for the three months ended March 31, 2024 and 2023 was $242.5 million and $369.5 million, respectively. Based on current exchange rates, the Company expects to record amortization expense as follows over the remaining current year and the five subsequent years:

Fiscal Year	Amount (1)
Remainder of 2024	$	707.8
2025	921.9
2026	881.5
2027	869.5
2028	858.0
2029	839.0

______________

(1)As of March 31, 2024, reflects the change in estimated useful lives as described in note 1.

12

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

5.    ACCRUED EXPENSES

Accrued expenses consisted of the following:

	As of
	March 31, 2024		December 31, 2023
Accrued construction costs	$	131.9	$	183.8
Accrued income tax payable	26.9		21.0
Accrued pass-through costs	97.0		77.4
Amounts payable for acquisitions	1.9		27.7
Amounts payable to tenants	99.5		103.3
Accrued property and real estate taxes	294.5		295.5
Accrued rent	75.6		75.1
Payroll and related withholdings	98.2		147.4
Other accrued expenses	308.6		349.4
Total accrued expenses	$	1,134.1	$	1,280.6

6.    LONG-TERM OBLIGATIONS

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

	As of
	March 31, 2024		December 31, 2023		Maturity Date
2021 Multicurrency Credit Facility (1) (2)	$	1,011.6	$	723.4	July 1, 2026
2021 Term Loan (1)	997.2		997.0		January 31, 2027
2021 Credit Facility (1)	2,038.4		1,603.4		July 1, 2028
2021 EUR Three Year Delayed Draw Term Loan (1) (2)	890.1		910.7		May 28, 2024
0.600% senior notes (3)	—		500.0		N/A
5.00% senior notes (4)	—		1,000.1		N/A
3.375% senior notes	650.0		649.7		May 15, 2024
2.950% senior notes	648.6		648.2		January 15, 2025
2.400% senior notes	748.8		748.5		March 15, 2025
1.375% senior notes (5)	538.0		550.0		April 4, 2025
4.000% senior notes	748.4		748.1		June 1, 2025
1.300% senior notes	498.5		498.3		September 15, 2025
4.400% senior notes	498.9		498.7		February 15, 2026
1.600% senior notes	697.7		697.4		April 15, 2026
1.950% senior notes (5)	537.4		549.6		May 22, 2026
1.450% senior notes	596.3		595.9		September 15, 2026
3.375% senior notes	995.1		994.7		October 15, 2026
3.125% senior notes	399.0		398.9		January 15, 2027
2.750% senior notes	747.3		747.0		January 15, 2027
0.450% senior notes (5)	805.9		824.3		January 15, 2027
0.400% senior notes (5)	536.1		548.2		February 15, 2027
3.650% senior notes	645.2		644.8		March 15, 2027
4.125% senior notes (5)	643.9		658.6		May 16, 2027
3.55% senior notes	747.3		747.1		July 15, 2027
3.600% senior notes	696.3		696.0		January 15, 2028
0.500% senior notes (5)	804.4		822.8		January 15, 2028
1.500% senior notes	647.3		647.1		January 31, 2028
5.500% senior notes	694.0		693.6		March 15, 2028
5.250% senior notes	644.2		643.9		July 15, 2028
5.800% senior notes	743.7		743.4		November 15, 2028
5.200% senior notes	642.7		—		February 15, 2029

13

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

3.950% senior notes	594.0		593.7		March 15, 2029
0.875% senior notes (5)	805.1		823.7		May 21, 2029
3.800% senior notes	1,639.1		1,638.6		August 15, 2029
2.900% senior notes	744.5		744.2		January 15, 2030
2.100% senior notes	743.4		743.1		June 15, 2030
0.950% senior notes (5)	533.8		546.0		October 5, 2030
1.875% senior notes	793.6		793.3		October 15, 2030
2.700% senior notes	695.2		695.0		April 15, 2031
4.625% senior notes (5)	533.0		545.2		May 16, 2031
2.300% senior notes	692.9		692.7		September 15, 2031
1.000% senior notes (5)	695.4		711.5		January 15, 2032
4.050% senior notes	643.1		642.9		March 15, 2032
5.650% senior notes	790.8		790.6		March 15, 2033
1.250% senior notes (5)	533.4		545.8		May 21, 2033
5.550% senior notes	840.8		840.6		July 15, 2033
5.900% senior notes	741.7		741.5		November 15, 2033
5.450% senior notes	640.0		—		February 15, 2034
3.700% senior notes	592.5		592.4		October 15, 2049
3.100% senior notes	1,038.6		1,038.6		June 15, 2050
2.950% senior notes	1,023.3		1,023.2		January 15, 2051
Total American Tower Corporation debt	36,806.5		36,472.0
Series 2015-2 notes (6)	524.2		524.1		June 16, 2025
Series 2018-1A securities (7)	497.0		496.8		March 15, 2028
Series 2023-1A securities (8)	1,285.3		1,284.4		March 15, 2028
Other subsidiary debt (9)	126.7		123.6		Various
Total American Tower subsidiary debt	2,433.2		2,428.9
Finance lease obligations	19.8		20.6
Total	39,259.5		38,921.5
Less current portion of long-term obligations	(3,067.6)		(3,187.5)
Long-term obligations	$	36,191.9	$	35,734.0

_______________

(1)Accrues interest at a variable rate.

(2)Reflects borrowings denominated in Euro (“EUR”) and, for the 2021 Multicurrency Credit Facility (as defined below), reflects borrowings denominated in both EUR and U.S. Dollars (“USD”).

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

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

(5)Notes are denominated in EUR.

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

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

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

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

Current portion of long-term obligations—The Company’s current portion of long-term obligations primarily includes (i) $650.0 million aggregate principal amount of the Company’s 3.375% senior unsecured notes due May 15, 2024, (ii) $650.0 million aggregate principal amount of the Company’s 2.950% senior unsecured notes due January 15, 2025, (iii) $750.0 million aggregate principal amount of the Company’s 2.400% senior unsecured notes due March 15, 2025 and (iv) 825.0 million EUR in borrowings under the 2021 EUR Three Year Delayed Draw Term Loan (as defined below).

Securitized Debt—Cash flows generated by the communications sites that secure the securitized debt of the Company are only available for payment of such debt and are not available to pay the Company’s other obligations or the claims of its creditors. However, subject to certain restrictions, the Company holds the right to receive the excess cash flows not needed to service the securitized debt and other obligations arising out of the securitizations. The securitized debt is the obligation of the issuers thereof or borrowers thereunder, as applicable, and their subsidiaries, and not of the Company or its other subsidiaries.

14

AMERICAN TOWER CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(tabular amounts in millions, unless otherwise noted)

Repayments of Senior Notes

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

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

Offerings of Senior Notes

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

The key terms of the Notes are as follows:

Senior Notes	Aggregate Principal Amount (in millions)		Issue Date and Interest Accrual Date	Maturity Date	Contractual Interest Rate	First Interest Payment	Interest Payments Due (1)	Par Call Date (2)
5.200% Notes	$	650.0	March 7, 2024	February 15, 2029