Schedule III – Real Estate Investments and Accumulated Depreciation

12 Months Ended

Dec. 31, 2016

Real Estate And Accumulated Depreciation Disclosure [Abstract]

Schedule III – Real Estate Investments and Accumulated Depreciation

Communications Sales and Leasing, Inc.

Schedule III – Real Estate Investments and Accumulated Depreciation

As of December 31, 2016

(dollars in thousands)

Col. A	Col. B		Col. C	Col. D		Col. E		Col. F			Col. G	Col. H	Col. I
			Initial cost to company(1)	Cost capitalized subsequent to acquisition(1) (3)		Gross Amount Carried at Close of Period							Life on which Depreciation in Latest Income
Description	Encumbrances		Distribution Systems	Improvements	Carry Costs	Distribution Systems Total		Accumulated Depreciation			Date of Construction(2)	Date Acquired(2)	Statements is Computed
Land	$	—	(1)	(1)	(1)	$	26,833	$	(201	)	(2)	(2)
Building and improvements		—	(1)	(1)	(1)		318,616		(148,432	)	(2)	(2)	3 - 40 years
Poles		—	(1)	(1)	(1)		234,393		(173,441	)	(2)	(2)	13 - 40 years
Fiber		—	(1)	(1)	(1)		2,024,564		(820,389	)	(2)	(2)	7 - 40 years
Copper		—	(1)	(1)	(1)		3,538,565		(2,856,327	)	(2)	(2)	7 - 40 years
Conduit		—	(1)	(1)	(1)		89,661		(54,487	)	(2)	(2)	13 - 47 years
Towers		—	(1)	(1)	(1)		4,307		(659	)	(2)	(2)	20 - 49 years
Real property interest		—	(1)	(1)	(1)		12,265		(94	)	(2)	(2)	50 - 99 years
Other assets		—	(1)	(1)	(1)		5,299		(718	)	(2)	(2)	15 - 20 years
Construction in progress		—	(1)	(1)	(1)		1,745		—		(2)	(2)

⁽¹⁾ Given the voluminous nature and variety of the Distribution Systems assets, this schedule omits columns C and D from the schedule III presentation.

⁽²⁾ Because additions and improvements to the Distribution Systems are ongoing, construction and acquisition dates are not applicable.

⁽³⁾ For the year ended December 31, 2016, the amount of capitalized costs related to the Distribution Systems is as follows (millions): 

Tenant capital improvements⁽⁴⁾ $ 157.0

⁽⁴⁾ Tenant capital improvements represent, maintenance, repair, overbuild, upgrade or replacements to the leased network, including, without limitation, the replacement of copper distribution systems with fiber distribution systems. We receive non-monetary consideration related to the TCIs as they automatically become our property, and we recognize the cost basis of TCIs that are capital in nature.

Communications Sales and Leasing, Inc.

Schedule III – Real Estate Investments and Accumulated Depreciation

As of December 31, 2016

(dollars in thousands)

	2016
Gross amount at beginning	$	6,093,541
Additions during period:
Tenant capital improvements		156,972
Acquisitions		15,848
Other		-
Total additions		172,820
Deductions during period:
Cost of real estate sold or disposed		10,113
Other		-
Total deductions		10,113
Balance at end	$	6,256,248

	2016
Gross amount of accumulated depreciation at beginning	$	3,720,890
Additions during period:
Depreciation		343,971
Other		-
Total additions		343,971
Deductions during period:
Amount of accumulated depreciation for assets sold or disposed
Other		10,113
Total deductions		10,113
Balance at end	$	4,054,748