In connection with the filing of its Form 10-K, CCIC corrected certain historical errors related to the timing of revenue recognition for its tower installation services. Specifically, CCIC determined that its historical practice of recognizing the full transaction price as service 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, represents a lease component for GAAP purposes 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 operations of the Company, and the Company (1) is not party to such transactions and (2) does not receive any cash associated with 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 Company's towers, and 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 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 a fixed asset. Historically, in connection with recording such permanent improvements as fixed assets on its financial statements, the Company would also record a corresponding amount as a capital contribution from CCIC.

The Company has determined that, despite the Company not receiving any cash, an amount equal to the lease component as a result of such installation and other construction-related services should be recorded on the consolidated financial statements as deferred revenue, and then amortized as revenues on a ratable basis over the length of the tenants’ associated estimated lease term.

Due to this determination, the Company has restated its financial statements for the years ended December 31, 2018 and 2017, including each of the unaudited condensed consolidated financial statements 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.

In addition to the determination discussed above, the Company has also determined that errors existed related to its accounting for 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 Sprint 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 Company's accounting for obligations to perform asset retirement activities resulted in (1) decreases to "Property and equipment, net" and "Other long-term liabilities" of $4.6 million and $22.6 million, respectively, and a corresponding net increase to "Member's equity" of $18.0 million on the Company's consolidated balance sheet as of December 31, 2018, and (2) a decrease to "Depreciation, amortization, and accretion" on the Company's consolidated statement of operations of $2.4 million and $2.7 million for the years ended December 31, 2018 and 2017, respectively.

The restatement also affects periods prior to 2017, the cumulative effect of which is reflected as an adjustment to opening "Member's equity" as of January 1, 2017. The adjustments to correct the historical errors described above are referred to herein as the "Restatement Adjustments." In addition to the Restatement Adjustments, the Company has also made other adjustments to the financial statements referenced above to correct errors that were not material to its 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. Collectively, the Company refers to the Restatement Adjustments and other adjustments as "Historical Adjustments."

The following tables summarize the effects of the Historical Adjustments on the Company’s restated consolidated balance sheet as of December 31, 2018 and its restated consolidated statement of operations, restated consolidated statement of cash flows and restated consolidated statement of changes in member's equity for the years ended December 31, 2018 and 2017. In addition to the restatement of the financial statements, certain historical information within the notes to the consolidated financial statements has been restated to reflect the correction of the Historical Adjustments.

The Restatement Adjustments in the tables below reflect the impact of (1) allocating an amount equal to the lease component as a result of such installation and other construction-related services on the consolidated financial statements as deferred revenue, and then amortizing those amounts as amortization of tower installations and modifications on a ratable basis over the length of the tenants’ associated estimated lease term and (2) correcting errors related to the Company's accounting for obligations to perform asset retirement activities.



	December 31, 2018
	As Reported		Restatement Adjustments			Other Adjustments			As Restated
ASSETS
Property and equipment, net	$	1,017,767	$	(4,584	)	$	(2,732	)	$	1,010,451
Total assets	3,621,436		(4,584		)	(2,732		)	3,614,120

LIABILITIES AND EQUITY
Current liabilities:
Deferred revenues^(a)	12,533		47,233			—			59,766
Total current liabilities	31,458		47,233			—			78,691
Other long-term liabilities^(a)	50,108		159,244			—			209,352
Total liabilities	1,188,445		206,477			—			1,394,922
Member's equity:
Member's equity	2,432,991		(211,061		)	(2,732		)	2,219,198
Total member's equity	2,432,991		(211,061		)	(2,732		)	2,219,198
Total liabilities and equity	$	3,621,436	$	(4,584	)	$	(2,732	)	$	3,614,120



	Year Ended December 31, 2018
	As Reported		Restatement Adjustments			Other Adjustments			As Restated
Site rental revenues:
Revenues from tenant contracts	$	659,490	$	—		$	—		$	659,490
Amortization of tower installations and modifications^(a)	—		43,491			—			43,491
Total site rental revenues	659,490		43,491			—			702,981
Operating expenses:
Depreciation, amortization and accretion	210,072		(2,367		)	$	(177	)	207,528
Total operating expenses	449,914		(2,367		)	(177		)	447,370
Operating income (loss)	209,576		45,858			177			255,611
Income (loss) before income taxes	169,898		45,858			177			215,933
Net income (loss)	$	169,482	$	45,858		$	177		$	215,517



	Year Ended December 31, 2017
	As Reported		Restatement Adjustments			Other Adjustments			As Restated
Site rental revenues:
Revenues from tenant contracts	$	616,897	$	—		$	—		$	616,897
Amortization of tower installations and modifications^(a)	—		38,435			—			38,435
Total site rental revenues	616,897		38,435			—			655,332
Operating expenses:
Depreciation, amortization and accretion	210,607		(2,710		)	(133		)	207,764
Total operating expenses	444,153		(2,710		)	(133		)	441,310
Operating income (loss)	172,744		41,145			133			214,022
Income (loss) before income taxes	133,157		41,145			133			174,435
Net income (loss)	$	133,771	$	41,145		$	133		$	175,049



	Year Ended December 31, 2018
	As Reported			Restatement Adjustments			Other Adjustments			As Restated
Cash flows from operating activities^(a):
Net income (loss)	$	169,482		$	45,858		$	177		$	215,517
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and accretion	210,072			(2,367		)	(177		)	207,528
Increase (decrease) in other liabilities	4,346			11,302			—			15,648
Net cash provided by (used for) operating activities	372,048			54,793			—			426,841
Cash flows from investing activities^(a):
Capital expenditures	(71,150		)	—			221			(70,929		)
Net cash provided by (used for) investing activities	(71,150		)	—			221			(70,929		)
Cash flows from financing activities^(a):
Distributions to member	(312,962		)	(54,793		)	(221		)	(367,976		)
Net cash provided by (used for) financing activities	(312,962		)	(54,793		)	(221		)	(367,976		)
Net increase (decrease) in cash and cash equivalents	(12,064		)	—			—			(12,064		)
Cash and cash equivalents at beginning of year	30,771			—			—			30,771
Cash and cash equivalents at end of year	$	18,707		$	—		$	—		$	18,707



	Year Ended December 31, 2017
	As Reported			Restatement Adjustments			Other Adjustments			As Restated
Cash flows from operating activities^(a):
Net income (loss)	$	133,771		$	41,145		$	133		$	175,049
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and accretion	210,607			(2,710		)	(133		)	207,764
Increase (decrease) in other liabilities	1,964			(1,185		)	—			779
Net cash provided by (used for) operating activities	357,317			37,250			—			394,567
Cash flows from investing activities^(a):
Capital expenditures	(49,551		)	—			1,239			(48,312		)
Net cash provided by (used for) investing activities	(49,551		)	—			1,239			(48,312		)
Cash flows from financing activities^(a):
Distributions to member	(296,545		)	(37,250		)	(1,239		)	(335,034		)
Net cash provided by (used for) financing activities	(296,545		)	(37,250		)	(1,239		)	(335,034		)
Net increase (decrease) in cash and cash equivalents	11,221			—			—			11,221
Cash and cash equivalents at beginning of year	19,550			—			—			19,550
Cash and cash equivalents at end of year	$	30,771		$	—		$	—		$	30,771



	December 31, 2016
	As Reported		Restatement Adjustments			Other Adjustments			As Restated
Member's equity	$	2,739,245	$	(206,021	)	$	(1,582	)	$	2,531,642
Total member's equity	$	2,739,245	$	(206,021	)	$	(1,582	)	$	2,531,642

	December 31, 2017
	As Reported		Restatement Adjustments			Other Adjustments			As Restated
Member's equity	$	2,576,471	$	(202,126	)	$	(2,688	)	$	2,371,657
Total member's equity	$	2,576,471	$	(202,126	)	$	(2,688	)	$	2,371,657

	December 31, 2018
	As Reported		Restatement Adjustments			Other Adjustments			As Restated
Member's equity	$	2,432,991	$	(211,061	)	$	(2,732	)	$	2,219,198
Total member's equity	$	2,432,991	$	(211,061	)	$	(2,732	)	$	2,219,198