Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | SBA COMMUNICATIONS CORP | |
Entity Central Index Key | 0001034054 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 113,251,125 | |
Trading Symbol | SBAC |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 117,613 | $ 143,444 | |
Restricted cash | 23,883 | 32,464 | |
Accounts receivable, net | 113,017 | 111,035 | |
Costs and estimated earnings in excess of billings on uncompleted contracts | 23,482 | 23,785 | |
Prepaid expenses and other current assets | [1] | 22,574 | 63,126 |
Total current assets | 300,569 | 373,854 | |
Property and equipment, net | [1] | 2,761,325 | 2,786,355 |
Intangible assets, net | 3,258,952 | 3,331,465 | |
Right-of-use assets, net | [1] | 2,552,304 | |
Other assets | 439,609 | 722,033 | |
Total assets | 9,312,759 | 7,213,707 | |
Current Liabilities: | |||
Accounts payable | 34,545 | 34,308 | |
Accrued expenses | 53,534 | 63,665 | |
Current maturities of long-term debt | 942,442 | 941,728 | |
Deferred revenue | 98,970 | 108,054 | |
Accrued interest | 35,059 | 48,722 | |
Current lease liabilities | [1] | 228,776 | |
Other current liabilities | [1] | 11,328 | 9,802 |
Total current liabilities | 1,404,654 | 1,206,279 | |
Long-term liabilities: | |||
Long-term debt, net | 8,780,606 | 8,996,825 | |
Long-term lease liabilities | [1] | 2,282,803 | |
Other long-term liabilities | [1] | 147,477 | 387,426 |
Total long-term liabilities | 11,210,886 | 9,384,251 | |
Shareholders' deficit: | |||
Preferred stock - par value $.01, 30,000 shares authorized, no shares issued or outstanding | |||
Common stock - Class A, par value $.01, 400,000 shares authorized, 113,205 shares and 112,433 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 1,132 | 1,124 | |
Additional paid-in capital | 2,359,195 | 2,270,326 | |
Accumulated deficit | (5,131,347) | (5,136,368) | |
Accumulated other comprehensive loss, net | (531,761) | (511,905) | |
Total shareholders' deficit | (3,302,781) | (3,376,823) | |
Total liabilities and shareholders' deficit | $ 9,312,759 | $ 7,213,707 | |
[1] | On January 1, 2019, the Company adopted ASU 2016-02 which requires lessees to recognize a right-of-use asset and a lease liability. Upon adoption, certain assets and liabilities were reclassified to Right-of-use assets, net and lease liabilities in accordance with provisions of ASU 2016-02. See Note 1 for further discussion. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock - Class A, par value | $ 0.01 | $ 0.01 |
Common stock - Class A, shares authorized | 400,000,000 | 400,000,000 |
Common stock - Class A, shares issued | 113,205,000 | 112,433,000 |
Common stock - Class A, shares outstanding | 113,205,000 | 112,433,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Revenues: | |||
Site leasing | $ 452,183 | $ 430,542 | |
Site development | 41,110 | 27,760 | |
Total revenues | 493,293 | 458,302 | |
Cost of revenues (exclusive of depreciation, accretion, and amortization shown below): | |||
Cost of site leasing | 92,714 | 92,817 | |
Cost of site development | 31,101 | 22,520 | |
Selling, general, and administrative | [1],[2] | 50,959 | 36,049 |
Acquisition and new business initiatives related adjustments and expenses | 2,437 | 3,044 | |
Asset impairment and decommission costs | 5,771 | 8,506 | |
Depreciation, accretion, and amortization | 171,038 | 165,398 | |
Total operating expenses | 354,020 | 328,334 | |
Operating income | 139,273 | 129,968 | |
Other income (expense): | |||
Interest income | 1,800 | 1,295 | |
Interest expense | (98,667) | (88,923) | |
Non-cash interest expense | (641) | (733) | |
Amortization of deferred financing fees | (5,061) | (5,388) | |
Loss from extinguishment of debt, net | (645) | ||
Other income (expense), net | (508) | 4,553 | |
Total other expense, net | (103,077) | (89,841) | |
Income before income taxes | 36,196 | 40,127 | |
Provision for income taxes | (10,207) | (8,582) | |
Net income | $ 25,989 | $ 31,545 | |
Net income per common share | |||
Basic | $ 0.23 | $ 0.27 | |
Diluted | $ 0.23 | $ 0.27 | |
Weighted average number of common shares | |||
Basic | 112,708 | 116,494 | |
Diluted | 114,344 | 118,293 | |
[1] | Includes non-cash compensation of $22,605 and $9,893 for the three months ended March 31, 2019 and 2018, respectively. | ||
[2] | Includes the impact of a partial recovery of $2.3 million of Oi prepetition obligations received during the three months ended March 31, 2019. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Non-cash compensation expense | $ 23,414 | $ 10,410 |
Selling, General And Administrative [Member] | ||
Non-cash compensation expense | 22,605 | $ 9,893 |
Selling, General And Administrative [Member] | Oi S.A. [Member] | ||
Provision for doubtful accounts | $ 2,300 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 25,989 | $ 31,545 |
Change in fair value of cash flow hedge | (15,312) | |
Foreign currency translation adjustments | (4,544) | 351 |
Comprehensive income | $ 6,133 | $ 31,896 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Deficit - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member]Class A Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss, Net [Member] | Total |
BALANCE at Dec. 31, 2017 | $ 1,164 | $ 2,167,470 | $ (4,388,288) | $ (379,460) | $ (2,599,114) |
BALANCE, Shares at Dec. 31, 2017 | 116,446 | ||||
Net income | 31,545 | 31,545 | |||
Common stock issued in connection with stock purchase/option plans | $ 3 | 6,883 | 6,886 | ||
Common stock issued in connection with stock purchase/option plans, Shares | 264 | ||||
Non-cash stock compensation | 10,636 | 10,636 | |||
Repurchase and retirement of common stock | $ (2) | (38,543) | (38,545) | ||
Repurchase and retirement of common stock, Shares | (238) | ||||
Foreign currency translation adjustments | 351 | 351 | |||
BALANCE at Mar. 31, 2018 | $ 1,165 | 2,184,989 | (4,395,286) | (379,109) | (2,588,241) |
BALANCE, Shares at Mar. 31, 2018 | 116,472 | ||||
BALANCE at Dec. 31, 2018 | $ 1,124 | 2,270,326 | (5,136,368) | (511,905) | $ (3,376,823) |
BALANCE, Shares at Dec. 31, 2018 | 112,433 | 112,433 | |||
Net income | 25,989 | $ 25,989 | |||
Common stock issued in connection with stock purchase/option plans | $ 8 | 63,467 | 63,475 | ||
Common stock issued in connection with stock purchase/option plans, Shares | 762 | ||||
Non-cash stock compensation | 23,722 | 23,722 | |||
Common stock issued in connection with acquisitions | 1,680 | 1,680 | |||
Common stock issued in connection with acquisitions, Shares | 10 | ||||
Change in fair value of cash flow hedge | (15,312) | (15,312) | |||
Foreign currency translation adjustments | (4,544) | (4,544) | |||
BALANCE at Mar. 31, 2019 | $ 1,132 | $ 2,359,195 | (5,131,347) | $ (531,761) | $ (3,302,781) |
BALANCE, Shares at Mar. 31, 2019 | 113,205 | 113,205 | |||
Impact of adoption of ASU 2016-02 related to leases | $ (20,968) | $ (20,968) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 25,989 | $ 31,545 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, accretion, and amortization | 171,038 | 165,398 |
Non-cash asset impairment and decommission costs | 5,451 | 8,446 |
Non-cash compensation expense | 23,414 | 10,410 |
Deferred income tax expense | 3,470 | 2,277 |
Other non-cash items reflected in the Statements of Operations | 4,647 | 2,784 |
Changes in operating assets and liabilities, net of acquisitions: | ||
AR and costs and est. earnings in excess of billings on uncompleted contracts, net | 1,931 | (5,198) |
Prepaid expenses and other assets | (130) | (9,277) |
Operating lease right-of-use assets, net | 24,116 | |
Accounts payable and accrued expenses | (5,050) | (14,336) |
Accrued interest | (13,663) | (15,137) |
Long-term lease liabilities | (19,652) | |
Other liabilities | 1,104 | 1,665 |
Net cash provided by operating activities | 222,665 | 178,577 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions | (55,287) | (117,622) |
Capital expenditures | (36,374) | (31,096) |
Purchase of investments | (150,053) | (686) |
Proceeds from sale of investments | 150,557 | |
Other investing activities | 6,181 | (2,193) |
Net cash used in investing activities | (84,976) | (151,597) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings under Revolving Credit Facility | 265,000 | |
Repayments under Revolving Credit Facility | (215,000) | (70,000) |
Repayment of Tower Securities | (755,000) | |
Proceeds from issuance of Tower Securities, net of fees | 631,848 | |
Repurchase and retirement of common stock | (38,545) | |
Proceeds from employee stock purchase/stock option plans | 63,475 | 6,901 |
Other financing activities | (6,522) | (6,155) |
Net cash (used in) provided by financing activities | (158,047) | 34,049 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (14,071) | (504) |
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (34,429) | 60,525 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: | ||
Beginning of period | 178,300 | 104,295 |
End of period | 143,871 | 164,820 |
Cash paid during the period for: | ||
Interest | 112,378 | 104,011 |
Income taxes | 5,593 | 2,148 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | 28,881 | |
Operating lease modifications and lease reassessments | 21,063 | |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 865 | $ 260 |
Common stock issued in connection with acquisitions | 1,680 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION The accompanying consolidated financial statements should be read in conjunction with the Annual Report on Form 10-K for the fiscal year ended December 31, 2018 for SBA Communications Corporation and its subsidiaries (the “Company”). These financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States. In the opinion of the Company’s management, all adjustments (consisting of normal recurring accruals) considered necessary for fair financial statement presentation have been made. The results of operations for an interim period may not give a true indication of the results for the year. Certain reclassifications have been made to prior year amounts or balances to conform to the presentation adopted in the current year. The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. While the Company believes that such estimates are fair when considered in conjunction with the consolidated financial statements and accompanying notes, the actual amounts, when known, may vary from these estimates. Foreign Currency Translation All assets and liabilities of foreign subsidiaries that do not utilize the U.S. dollar as its functional currency are translated at period-end rates of exchange, while revenues and expenses are translated at monthly average rates of exchange prevailing during the period. Unrealized remeasurement gains and losses are reported as foreign currency translation adjustments through Accumulated Other Compre hensive Loss in the Consolidated Statement of Shareholders’ Deficit. For foreign subsidiaries where the U.S. dollar is the functional currency, monetary assets and liabilities of such subsidiaries, which are not denominated in U.S. dollars, are remeasured at exchange rates in effect at the balance sheet date, and revenues and expenses are remeasured at monthly average rates prevailing during the year. Unrealized translation gains and losses are reported as other income (expense), net in the Consolidated Statements of Operations. Intercompany Loans Subject to Remeasurement In accordance with Accounting Standards Codification (ASC) 830, the Company remeasures foreign denominated intercompany loans with the corresponding change in the balance being recorded in Other income (expense), net in the Consolidated Statements of Operations as settlement is anticipated or planned in the foreseeable future. The Company recorded a $2.1 million loss and a $1.6 million gain on the remeasurement of intercompany loans for the three months ended March 31, 2019 and 2018 , respectively, due to changes in foreign exchange rates. As of March 31, 2019 and December 31, 2018 , the aggregate amount outstanding under the two intercompany loan agreements with the Company’s Brazilian subsidiary was $471.3 million and $536.9 million, respectively. Leases The Company ado pted ASU No. 2016-02, Leases ( “ Topic 842 ” ) using the modified retrospective adoption method with an effective date of January 1, 2019. The con solidated financial statements for 2019 are presented under the new standard, while the comparative periods presented are not adjusted and continue to be reported in accordance with the Company's historical accounting policy. This standard requires all lessees to recognize a right-of-use asset and a lease liability, initially measured at the prese nt value of the lease payments. The Company has elected not to separate non lease components from the associated lease component for all underlying class es of assets . The adoption of the new lease standard had a si gnificant impact on the Company’ s C on solidated B alance S heets resulting in the recognition of $2.6 billion of right-of-use assets , net , $226.0 million of current lease liabilities, and $2.3 billion of long-term lease liabilities . The right-of-use assets included $266.3 million of rent prepayments and financ ing lease right-of-use assets , net which were previously reported in Prepaid expenses and other current assets, Other assets , and Prop erty, Plant and Equipment, net on the Consolidated Balance Sheets. In addition, the Company recognized a $21.0 million cumulative effect adjustment, net of tax, to Accumulated deficit on the Consolidated Balance Sheet re late d to the unamortized deferred lease costs incurred in prior periods which do not meet the definition of init ial direct costs under Topic 842. The adoption of Topic 842 did not have a significant impact on the Company ’ s lease classification or a material impact on its Consolidated S tatements of O perations and liquidity. Additionally, the adoption of Topic 842 did not have a materi al impact on the Company’s debt covenant compliance under its current agreements. The components of the right-of-use assets and lease liabilities as of March 31, 2019 are as follows (in thousands): Operating lease right-of-use assets, net $ 2,549,143 Financing lease right-of-use assets, net 3,161 Right-of-use assets, net $ 2,552,304 Current operating lease liabilities $ 227,819 Current financing lease liabilities 957 Current lease liabilities $ 228,776 Long-term operating lease liabilities $ 2,281,561 Long-term financing lease liabilities 1,242 Long-term lease liabilities $ 2,282,803 Operating Leases Ground leases. The Company enters into long-term lease contracts for land that underlies its tower structures. Ground lease agreements generally include renewal options which can be exercised exclusively at the Company’s election. In making the determination of the period for which the Company is reasonably certain to remain on the site, the Company will assume optional renewals are reasonably certain of being exercised for the greater of: (1) a period sufficient to cover all tenants under their current committed term where the Company has provided rights to the tower not to exceed the contractual ground lease terms including renewals, and (2) a period sufficient to recover the investment of significant leasehold improvements located on the site. Substantially all leases provide for rent rate escalations. The most common provisions provide for fixed rent escalators which typically average 2 -3% annually. The Company also has ground leases that include consumer price index escalators, particularly in its South American operations. Increases or decreases in lease payments that result from subsequent changes in the index or r ate are accounted for as variable lease payments. Office leases. The Company’s office leases consist of long-term leases for international, regional, and certain site development office locations. Office leases include a single lease component, lease of the office space and sometimes nonlease components such as common a rea maintenance expenses . The lease term for office leases are generally considered to be the contractually committed term. Finance Leases Vehicle leases. The Company leases vehicles that are used in its site development business. These leases are accounted for as financing leases and have lease terms that are contractually committed and do not include optional renewal terms. Discount Rate When available, the Company uses the rate implicit in the lease to discount lease payments to present value. However, the Company ’ s ground leases generally do not provide a readily determinable implicit rate. Therefore, the Company estimates the incremental borrowing rate to discount lease payments based on information available at lease commencement. The Company uses publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates. Lease Cost Variable lease payments includ e escalations based on standard cost of living indexes and are initially recognized using the prevailing index at the date of initial measurement or upon reassessment of the lease term. Subsequent changes in standard cost of living increases are recognized as variable lease costs . Variable lease payments also include contingent rent provisions. The components of lease cost, lease term, and discount rate as of March 31, 2019 are as follows : (in thousands) Amortization of right-of-use assets $ 337 Interest on finance lease liabilities 28 Total finance lease cost 365 Operating lease cost (1) 68,299 Variable lease cost (1) 7,742 Total lease cost $ 76,406 Weighted Average Remaining Lease Term: Operating leases 18.4 years Finance leases 2.9 years Weighted Average Discount Rate: Operating leases 6.1% Finance leases 3.8% Other information: Cash paid for amounts included in measurement of lease liabilities: Cash flows from operating leases $ 59,458 Cash flows from finance leases $ 337 (1) F or the three months ended March 31, 2018 , operating lease cost and variable lease cost were $69.6 million and $6.8 million , respectively. Tenant (Operating) L eases The Company enters into long-term lease contracts with wireless service providers to lease antenna space on towers that it owns or operates. Each tenant lease relates to the lease or use of space at an individual site. Tenant leases are generally for an initial term of five to ten years with multiple 5 -year renewal periods at the option of the tenant. Tenant leases typically contain specific rent escalators, which can be fixed or escalate in accordance with a standard cost of living index, including the renewal option periods. Tenant lease agreements generally include renewal options which can be exercised exclusively at the tenant’s election. The only common exception is if the Company no longer has a right to the ground underlying the site, the lease agreements permit the Company to terminate the lease. Despite high frequency of renewal of options to extend the lease by its tenants, the Company has concluded that the exercise of a renewal option by a tenant is not reasonably certain of occurrence ; therefore , only the current committed term is included in the determination of the lease term. Certain tenant leases provide for a reimbursement of costs incurred by the Company. The Company pays these costs directly and is not relieved of the primary obligation for the expenses. These reimbursements are recorded as r evenue on the Statement s of Operations. Deferred Lease Costs Prior to the adoption of ASU 2016-02, the Company deferred certain initial direct costs associated with the origination of tenant leases and lease amendments and amortized these costs over the remaining lease term. These costs included an allocation of a portion of the employees’ total compensa tion and payroll related benefits related to time spent performing those activities. Such deferred costs were approximately $2.8 million for the three months ended March 31, 2018 . Amortization expense related to these deferred costs was $3.1 million for the three months ended March 31, 2018 and is included in cost of s ite leasing on the Consolidated Statements of Operations. As of December 31, 2018, unamortized deferred lease costs were $27.0 million. ASU 2016-02, defines initial direct costs as incremental costs that would not have been incurred if the lease had not been obtained. These costs, including commissions paid related to the origination of specific tenant leases, will continue to be deferred and amortized over the remaining lease term. Upon adoption, the Company recognized a $21.0 million cumulative effect adjustment, net of tax, to Accumulated deficit on the Consolidated Balance Sheet s . This adjustment reflects the recognition of unamortized deferred lease costs incurred in prior periods which do not meet the definition o f initial direct costs under Topic 842. Initial direct costs were approximately $0.6 million for the three months ended March 31, 2019 . Amortization e xpense related to these deferred costs was $0.4 million for the three months ended March 31, 2019 . As of March 31, 2019 , unamortized deferred lease costs were $4.1 million and were included in other assets on the Consolidated Balance Sheets . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 2. FAIR VALUE MEASUREMENTS Items Measured at Fair Value on a Recurring Basis — The Company’s earnout liabilities related to business combinations are measured at fair value on a recurring basis using Level 3 inputs and are recorded in Accrued expenses in the Consolidated Balance Sheets. Changes in estimates are recorded in Acquisition and new business initiatives related adjustments and expenses in the Consolidated Statements of Operations. The Company determines the fair value of earnouts (contingent consideration) and any subsequent changes in fair value using a discounted probability-weighted approach using Level 3 inputs. Level 3 valuations rely on unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The fair value of the earnouts is reviewed quarterly and is based on the payments the Company expects to make based on historical internal observations related to the anticipated performance of the underlying assets. The Company’s estimate of the fair value of its obligation contained in acquisitions prior to January 1, 2017 (adoption of ASU 2017-01) was $0.4 million and $0.5 million as of March 31, 2019 and December 31, 2018 , respectively. The maximum potential obligation related to the performance targets for these acquisitions was $0.6 million and $0.7 million as of March 31, 2019 and December 31, 2018 , respectively. The maximum potential obligation related to the performance targets for acquisitions after January 1, 2017, which have not been recorded on the Company’s Consolidated Balance Sheet, were $10.3 million and $13.3 million as of March 31, 2019 and December 31, 2018 , respectively. On February 1, 2019, the Company, through its wholly owned subsidiary, SBA Senior Finance II, LLC, entered into a four -year interest rate swap on a portion of its 2018 Term Loan in order to reduce the Company’s exposure to fluctuations in interest rates. The interest rate swap has a $1.2 billion notional value receiving interest at one month LIBOR plus 200 basis points and paying a fixed rate of 4.495% per annum settled monthly. The Company designated this swap as a cash flow hedge. On a quarterly basis, the Company evaluates whether the swap remains highly effective in offsetting changes in cash flows. As of March 31, 2019 , the Company believes that the hedge remains highly effective and changes in the fair value were recorded in Accumulated other comprehensive loss, net on the Consolidated Balance Sheets. As of March 31, 2019 , the fair value of the swap using Level 2 inputs was a liability of $15.3 million and was included within Other long-term liabilities on the Consolidated Balance Sheets. Changes in the fair value of the swap are reflected within Accumulated other comprehensive loss, net. The Company is exposed to counterparty credit risk to the extent that a counterparty fails to meet the terms of a contract. The Company’s exposure is limited to the current value of the contract at the time the counterparty fails to perform. The Company’s asset retirement obligations are measured at fair value on a recurring basis using Level 3 inputs and are recorded in Other long-term liabilities in the Consolidated Balance Sheets. The fair value of the asset retirement obligations is calculated using a discounted cash flow model. Items Measured at Fair Value on a Nonrecurring Basis — The Company’s long-lived and intangible assets are measured at fair value on a nonrecurring basis using Level 3 inputs. The Company considers many factors and makes certain assumptions when making this assessment, including but not limited to: general market and economic conditions, historical operating results, geographic location, lease-up potential and expected timing of lease-up. The fair value of the long-lived and intangible assets is calculated using a discounted cash flow model. Asset impairment and decommission costs for all periods presented and the related impaired assets primarily relate to the Company’s site leasing operating segment. The following summarizes the activity of asset impairment and decommission costs (in thousands): For the three months ended March 31, 2019 2018 Asset impairment (1) $ 3,303 $ 5,855 Write-off of carrying value of decommissioned towers 2,157 2,001 Other (including third party decommission costs) 311 650 Total asset impairment and decommission costs $ 5,771 $ 8,506 (1) Represents impairment charges resulting from the Company’s regular analysis of whether the future cash flows from certain towers are adequate to recover the carrying value of the investment in those towers. Fair Value of Financial Instruments — The carrying values of cash and cash equivalents, accounts receivable, restricted cash, accounts payable, and short-term investments approximate their estimated fair values due to the short maturity of these instruments. Short-term investments consisted of $0.2 million in Treasury securities as of March 31, 2019 and December 31, 2018 . The Company’s estimate of the fair value of its held-to-maturity investments in treasury and corporate bonds, including current portion, are based primarily upon Level 1 reported market values. As of March 31, 2019 and December 31, 2018 , the carrying value and fair value of the held-to-maturity investments, including current portion, were $0.2 million. The current portion is recorded in Prepaid and other current assets in the Consolidated Balance Sheets, while held-to-maturity investments are recorded in Other assets. For the three months ended March 31, 2019 , the Company purchased and sold $150.0 million of short -term investments. The Company determines fair value of its debt instruments utilizing various Level 2 sources including quoted prices and indicative quotes (non-binding quotes) from brokers that require judgment to interpret market information including implied credit spreads for similar borrowings on recent trades or bid/ask prices. The fair value of the Revolving Credit Facility is considered to approximate the carrying value because the interest payments are based on Eurodollar rates that reset monthly or more frequently. The Company does not believe its credit risk has changed materially from the date the applicable Eurodollar Rate was set for the Revolving Credit Facility ( 112.5 to 175.0 basis points). Refer to Note 10 for the fair values, principal balances, and carrying values of the Company’s debt instruments. |
Restricted Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2019 | |
Restricted Cash [Abstract] | |
Restricted Cash | 3. RESTRICTED CASH The cash, cash equivalents, and restricted cash balances on the Consolidated Statements of Cash Flows consists of the following: As of As of March 31, 2019 December 31, 2018 Included on Balance Sheet (in thousands) Cash and cash equivalents $ 117,613 $ 143,444 Securitization escrow accounts 23,682 32,261 Restricted cash - current asset Payment and performance bonds 201 203 Restricted cash - current asset Surety bonds and workers compensation 2,375 2,392 Other assets - noncurrent Total cash, cash equivalents, and restricted cash $ 143,871 $ 178,300 Pursuant to the terms of the Tower Securities (see Note 10), the Company is required to establish a securitization escrow account, held by the indenture trustee, into which all rents and other sums due on the towers that secure the Tower Securities are directly deposited by the lessees. These restricted cash amounts are used to fund reserve accounts for the payment of (1) debt service costs, (2) ground rents, real estate and personal property taxes and insurance premiums related to towers, (3) trustee and servicing expenses, and (4) management fees. The restricted cash in the securitization escrow account in excess of required reserve balances is subsequently released to the Borrowers (as defined in Note 10) monthly, provided that the Borrowers are in compliance with their debt service coverage ratio and that no event of default has occurred. All monies held by the indenture trustee are classified as restricted cash on the Company’s Consolidated Balance Sheets. Payment and performance bonds relate primarily to c ollateral requirements for tower construction currently in process by the Company. Cash is pledged as collateral related to surety bonds issued for the benefit of the Company or its affiliates in the ordinary course of business and primarily related to the Company’s tower removal obligations. As of March 31, 2019 and December 31, 2018 , the Company had $40.6 million and $40.5 million in surety, payment and performance bonds, respectively, for which no collateral was required to be posted. The Company periodically evaluates the collateral posted for its bonds to ensure that it meets the minimum requirements. As of March 31, 2019 and December 31, 2018 , the Company had also pledged $2.3 million and $2.2 million, respectively, as collateral related to its workers compensation policy . |
Costs and Estimated Earnings on
Costs and Estimated Earnings on Uncompleted Contracts | 3 Months Ended |
Mar. 31, 2019 | |
Costs and Estimated Earnings on Uncompleted Contracts [Abstract] | |
Costs and Estimated Earnings on Uncompleted Contracts | 4. COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS The Company’s costs and estimated earnings on uncompleted contracts are comprised of the following: As of As of March 31, 2019 December 31, 2018 (in thousands) Costs incurred on uncompleted contracts $ 44,842 $ 38,464 Estimated earnings 18,678 16,655 Billings to date (42,058) (31,952) $ 21,462 $ 23,167 These amounts are included in the Consolidated Balance Sheets under the following captions: As of As of March 31, 2019 December 31, 2018 (in thousands) Costs and estimated earnings in excess of billings on uncompleted contracts $ 23,482 $ 23,785 Billings in excess of costs and estimated earnings on uncompleted contracts (included in Other current liabilities) (2,020) (618) $ 21,462 $ 23,167 At March 31, 2019 and December 31, 2018 , eight customers comprised 97.7% and 96.3% of the contract assets, net of contract liabilities. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Acquisitions [Abstract] | |
Acquisitions | 5. ACQUISITIONS The following table summarizes the Company’s acquisition activity: For the three months ended March 31, 2019 2018 (in thousands) Acquisitions of towers and related intangible assets (1) $ 42,148 $ 108,355 Land buyouts and other assets (2) 13,139 9,267 Total cash acquisition capital expenditures $ 55,287 $ 117,622 (1) The three months ended March 31, 2019 excludes $1.7 million of acquisition costs funded through the issuance of 10,000 shares of Class A common stock. (2) In addition, the Company paid $3.8 million and $6.6 million for ground lease extensions and term easements on land underlying the Company’s towers during the three months ended March 31, 2019 and 2018 , respectively. The Company recorded these amounts in prepaid rent on its Consolidated Balance Sheets. During the three months ended March 31, 2019 , the Company acquired 54 completed towers and related assets and liabilities consisting of $6.6 million of property and equipment, $33.6 million of intangible assets, and $1.9 million of other net asset balances. All acquisitions in the quarter ended March 31, 2019 were accounted for as asset acquisitions except for one acquisition, purchased for $3.0 million in cash and $1.7 million in the Company’s Class A common stock, which was accounted for as a business combination . |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets and Other Assets | 3 Months Ended |
Mar. 31, 2019 | |
Prepaid Expenses and Other Current Assets and Other Assets [Abstract] | |
Prepaid Expenses and Other Current Assets and Other Assets | 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS AND OTHER ASSETS The Company’s prepaid expenses and other current assets are comprised of the following: As of As of March 31, 2019 December 31, 2018 (in thousands) Prepaid ground rent (1) $ 1,649 $ 34,276 Loan receivables — 11,178 Other 20,925 17,672 Total prepaid expenses and other current assets $ 22,574 $ 63,126 (1) Decrease is due to the adoption of ASU 2016-02. Prepaid ground rent was reclassified to Right-of-use assets, net on the Consolidated Balance Sheets in the first quarter of 2019. The Company’s other assets are comprised of the following: As of As of March 31, 2019 December 31, 2018 (in thousands) Prepaid ground rent (1) $ — $ 263,694 Straight-line rent receivable 323,708 322,073 Loan receivables 54,490 49,255 Deferred lease costs, net (1) 4,054 27,020 Deferred tax asset - long term 15,830 18,330 Other 41,527 41,661 Total other assets $ 439,609 $ 722,033 (1) Decrease is due to the adoption of ASU 2016-02. Prepaid ground rent was reclassified from Other assets to Right-of-use assets, net on the Consolidated Balance Sheets in the first quarter of 2019. Deferred lease costs of $23.3 million were written off to Accumulated deficit on the Consolidated Balance Sheets in the first quarter of 2019. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2019 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment, Net | 7. PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: As of As of March 31, 2019 December 31, 2018 (in thousands) Towers and related components $ 4,986,046 $ 4,951,321 Construction-in-process 33,943 35,756 Furniture, equipment, and vehicles (1) 46,450 54,814 Land, buildings, and improvements 679,823 668,459 Total property and equipment 5,746,262 5,710,350 Less: accumulated depreciation (1) (2,984,937) (2,923,995) Property and equipment, net $ 2,761,325 $ 2,786,355 (1) Financing lease right-of-use assets are included in the prior period but are included in Right-of-use assets, net on the Consolidated Balance Sheets for the current period. Construction-in-process represents costs incurred related to towers that are under development and will be used in the Company’s site leasing operations. Depreciation expense was $69.2 million and $65.0 million for the three months ended March 31, 2019 and 2018 , respectively. At March 31, 2019 and December 31, 2018 , unpaid capital expenditures that are included in accounts payable and accrued expenses were $8.4 million and $12.4 million , respectively. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2019 | |
Intangible Assets, Net [Abstract] | |
Intangible Assets, Net | 8. INTANGIBLE ASSETS, NET The following table provides the gross and net carrying amounts for each major class of intangible assets: As of March 31, 2019 As of December 31, 2018 Gross carrying Accumulated Net book Gross carrying Accumulated Net book amount amortization value amount amortization value (in thousands) Current contract intangibles $ 4,417,240 $ (1,998,596) $ 2,418,644 $ 4,394,416 $ (1,928,030) $ 2,466,386 Network location intangibles 1,672,530 (832,222) 840,308 1,669,859 (804,780) 865,079 Intangible assets, net $ 6,089,770 $ (2,830,818) $ 3,258,952 $ 6,064,275 $ (2,732,810) $ 3,331,465 All intangible assets noted above are included in the Company’s site leasing segment. Amortization expense relating to the intangible assets above was $101.8 million and $100.3 million for the three months ended March 31, 2019 and 2018 , respectively . |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2019 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | 9. ACCRUED EXPENSES The Company’s accrued expenses are comprised of the following: As of As of March 31, 2019 December 31, 2018 (in thousands) Salaries and benefits $ 7,669 $ 16,015 Real estate and property taxes 7,768 7,928 Unpaid capital expenditures 8,435 12,387 Other 29,662 27,335 Total accrued expenses $ 53,534 $ 63,665 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt [Abstract] | |
Debt | 10. DEBT The principal values, fair values, and carrying values of debt consist of the following (in thousands): As of As of March 31, 2019 December 31, 2018 Maturity Date Principal Balance Fair Value Carrying Value Principal Balance Fair Value Carrying Value 2014 Senior Notes Jul. 15, 2022 $ 750,000 $ 761,250 $ 741,839 $ 750,000 $ 735,000 $ 741,273 2016 Senior Notes Sep. 1, 2024 1,100,000 1,108,250 1,084,315 1,100,000 1,034,000 1,083,689 2017 Senior Notes Oct. 1, 2022 750,000 751,875 743,525 750,000 712,500 743,099 2013-2C Tower Securities Apr. 11, 2023 575,000 572,591 569,999 575,000 569,164 569,715 2014-1C Tower Securities Oct. 8, 2019 920,000 916,348 918,442 920,000 914,241 917,728 2014-2C Tower Securities Oct. 8, 2024 620,000 630,112 614,534 620,000 609,665 614,315 2015-1C Tower Securities Oct. 8, 2020 500,000 498,850 496,317 500,000 496,640 495,737 2016-1C Tower Securities Jul. 9, 2021 700,000 693,714 695,474 700,000 691,432 694,994 2017-1C Tower Securities Apr. 11, 2022 760,000 752,856 753,529 760,000 744,496 753,028 2018-1C Tower Securities Mar. 9, 2023 640,000 644,922 633,118 640,000 641,478 632,725 Revolving Credit Facility Apr. 11, 2023 110,000 110,000 110,000 325,000 325,000 325,000 2018 Term Loan Apr. 11, 2025 2,382,000 2,340,315 2,361,956 2,388,000 2,262,630 2,367,250 Total debt $ 9,807,000 $ 9,781,083 $ 9,723,048 $ 10,028,000 $ 9,736,246 $ 9,938,553 Less: current maturities of long-term debt (942,442) (941,728) Total long-term debt, net of current maturities $ 8,780,606 $ 8,996,825 The table below reflects cash and non-cash interest expense amounts recognized by debt instrument for the periods presented: For the three months ended March 31, 2019 2018 Cash Non-cash Cash Non-cash Interest Interest Interest Interest (in thousands) 2014 Senior Notes $ 9,141 $ 196 $ 9,141 $ 187 2016 Senior Notes 13,406 259 13,406 246 2017 Senior Notes 7,500 — 7,500 — 2013 Tower Securities 5,396 — 9,475 — 2014 Tower Securities 12,785 — 12,785 — 2015-1C Tower Securities 3,985 — 3,985 — 2016-1C Tower Securities 5,090 — 5,090 — 2017-1C Tower Securities 6,085 — 6,085 — 2018-1C Tower Securities 5,570 — 1,362 — Revolving Credit Facility 2,836 — 1,601 — 2014 Term Loan — — 13,947 131 2015 Term Loan — — 4,697 169 2018 Term Loan 26,922 186 — — Other (49) — (151) — Total $ 98,667 $ 641 $ 88,923 $ 733 Senior Credit Agreement Revolving Credit Facility under the Senior Credit Agreement The Revolving Credit Facility consists of a revolving loan under which up to $1.25 billion aggregate principal amount may be borrowed, repaid and redrawn, based upon specific financial ratios and subject to the satisfaction of other customary conditions to borrowing. Amounts borrowed under the Revolving Credit Facility accrue interest, at SBA Senior Finance II’s election, at either (1) the Eurodollar Rate plus a margin that ranges from 112.5 basis points to 175.0 basis points or (2) the Base Rate plus a margin that ranges from 12.5 basis points to 75.0 basis points, in each case based on the ratio of Consolidated Net Debt to Annualized Borrower EBITDA, calculated in accordance with the Senior Credit Agreement. In addition, SBA Senior Finance II is required to pay a commitment fee of between 0.20% and 0.25% per annum on the amount of unused commitment. If not earlier terminated by SBA Senior Finance II, the Revolving Credit Facility will terminate on, and SBA Senior Finance II will repay all amounts outstanding on or before, April 11, 2023 . The proceeds available under the Revolving Credit Facility may be used for general corporate purposes. SBA Senior Finance II may, from time to time, borrow from and repay the Revolving Credit Facility. Consequently, the amount outstanding under the Revolving Credit Facility at the end of the period may not be reflective of the total amounts outstanding during such period. During the three months ended March 31, 2019 , the Company repaid $215.0 million of the outstanding balance under the Revolving Credit Facility. As of March 31, 2019 , the balance outstanding under the Revolving Credit Facility was $110.0 million accruing interest at 4.16% per annum. In addition, SBA Senior Finance II was required to pay a commitment fee of 0.25% per annum on the amount of the unused commitment. As of March 31, 2019 , SBA Senior Finance II was in compliance with the financial covenants contained in the Senior Credit Agreement . Subsequent to March 31, 2019 , the Company repaid $60.0 million of the outstanding balance under the Revolving Credit Facility. As of the date of this filing, $ 50.0 million was outstanding under the Revolving Credit Facility. Term Loans under the Senior Credit Agreement 2014 Term Loan The 2014 Term Loan consisted of a senior secured term loan with an initial aggregate principal amount of $1.5 billion that was scheduled to mature on March 24, 2021 . The 2014 Term Loan accrued interest, at SBA Senior Finance II’s election, at either the Base Rate plus 125 basis points (with zero Base Rate floor) or the Eurodollar Rate plus 225 basis points (with a zero Eurodollar Rate floor). The 2014 Term Loan was originally issued at 99.75% of par value. Principal payments on the 2014 Term Loan commenced on September 30, 2014 and were being made in quarterly installments on the last day of each March, June, September, and December in an amount equal to $3.8 million. The Company incurred deferred financing fees of approximately $14.1 million in relation to this transaction, which were being amortized through the maturity date. During the three months ended March 31, 2018, the Company repaid $3.8 million of principal on the 2014 Term Loan. On April 11, 2018, the Company repaid the remaining $1,443.8 million outstanding principal balance of the 2014 Term Loan with proceeds from the 2018 Term Loan. In connection with the repayment, the Company expensed $5.8 million of net deferred financing fees and $1.7 million of discount related to the debt. 2015 Term Loan The 2015 Term Loan consisted of a senior secured term loan with an initial aggregate principal amount of $500.0 million that was scheduled to mature on June 10, 2022 . The 2015 Term Loan accrued interest, at SBA Senior Finance II’s election at either the Base Rate plus 125 basis points (with a zero Base Rate floor) or the Eurodollar Rate plus 225 basis points (with a zero Eurodollar Rate floor). The 2015 Term Loan was originally issued at 99.0% of par value. Principal payments on the 2015 Term Loan commenced on September 30, 2015 and were being made in quarterly installments on the last day of each March, June, September, and December in an amount equal to $1.3 million. The Company incurred deferred financing fees of approximately $5.5 million in relation to this transaction, which were being amortized through the maturity date. During the three months ended March 31, 2018, the Company repaid $1.3 million of principal on the 2015 Term Loan. On April 11, 2018, the Company repaid the remaining $486.3 million outstanding principal balance of the 2015 Term Loan with proceeds from the 2018 Term Loan. In connection with the repayment, the Company expensed $3.2 million of net deferred financing fees and $3.1 million of discount related to the debt. 2018 Term Loan On April 11, 2018, the Company, through its wholly owned subsidiary, SBA Senior Finance II LLC, obtained a new term loan (the “2018 Term Loan”) under the amended and restated Senior Credit Agreement. The 2018 Term Loan consists of a senior secured term loan with an initial aggregate principal amount of $2.4 billion that matures on April 11, 2025 . The 2018 Term Loan accrues interest, at SBA Senior Finance II’s election at either the Base Rate plus 100 basis points (with a zero Base Rate floor) or the Eurodollar Rate plus 200 basis points (with a zero Eurodollar Rate floor). The 2018 Term Loan was issued at 99.75% of par value. As of March 31, 2019 , the 2018 Term Loan was accruing interest at 4.50% per annum. Principal payments on the 2018 Term Loan commenced on September 30, 2018 and are being made in quarterly installments on the last day of each March, June, September, and December in an amount equal to $6.0 million. The Company incurred deferred financing fees of approximately $16.8 million in relation to this transaction, which are being amortized through the maturity date. The proceeds from the 2018 Term Loan were used (1) to retire the outstanding $1.93 billion in aggregate principal amount of the 2014 Term Loan and 2015 Term Loan, (2) to pay down the existing outstanding balance under the Revolving Credit Facility, and (3) for general corporate purposes. During the three months ended March 31, 2019 , the Company repaid an aggregate of $6.0 million of principal on the 2018 Term Loan. As of March 31, 2019 , the 2018 Term Loan had a principal balance of $2.4 billion. On February 1, 2019, the Company, through its wholly owned subsidiary, SBA Senior Finance II, LLC, entered into a four -year interest rate swap on a portion of its 2018 Term Loan in order to reduce the Company’s exposure to fluctuations in interest rates. The interest rate swap has a $1.2 billion notional value receiving interest at one month LIBOR plus 200 basis points and paying a fixed rate of 4.495% per annum settled monthly. Secured Tower Revenue Securities 2013 Tower Securities On April 18, 2013, the Company, through a New York common law trust (the “Trust”), issued $425.0 million of 2.240% Secured Tower Revenue Securities Series 2013-1C, which had an anticipated repayment date of April 10, 2018 and a final maturity date of April 9, 2043 (the “2013-1C Tower Securities”), $575.0 million of 3.722% Secured Tower Revenue Securities Series 2013-2C, which have an anticipated repayment date of April 11, 2023 and a final maturity date of April 9, 2048 (the “2013-2C Tower Securities”), and $330.0 million of 3.598% Secured Tower Revenue Securities Series 2013-1D, which had an anticipated repayment date of April 10, 2018 and a final maturity date of April 9, 2043 (the “2013-1D Tower Securities”) (collectively the “2013 Tower Securities”). The aggregate $1.33 billion of 2013 Tower Securities had a blended interest rate of 3.218% per annum, payable monthly. The Company incurred financing fees of $25.5 million in relation to this transaction, which were being amortized through the anticipated repayment date of each of the 2013 Tower Securities. On March 9, 2018, the Company repaid the entire aggregate principal amount of the 2013-1C Tower Securities and 2013-1D Tower Securities in connection with the issuance of the 2018-1C Tower Securities (as defined below). The sole asset of the Trust consists of a non-recourse mortgage loan made in favor of those entities that are borrowers on the mortgage loan (the “Borrowers”). 2014 Tower Securities On October 15, 2014, the Company, through the Trust, issued $920.0 million of 2.898% Secured Tower Revenue Securities Series 2014-1C, which have an anticipated repayment date of October 8, 2019 and a final maturity date of October 11, 2044 (the “2014-1C Tower Securities”) and $620.0 million of 3.869% Secured Tower Revenue Securities Series 2014-2C, which have an anticipated repayment date of October 8, 2024 and a final maturity date of October 8, 2049 (the “2014-2C Tower Securities”) (collectively the “2014 Tower Securities”). The aggregate $1.54 billion of 2014 Tower Securities have a blended interest rate of 3.289% per annum, payable monthly. The Company incurred financing fees of $22.5 million in relation to this transaction, which are being amortized through the anticipated repayment date of each of the 2014 Tower Securities. 2015-1C Tower Securities On October 14, 2015, the Company, through the Trust, issued $500.0 million of Secured Tower Revenue Securities Series 2015-1C, which have an anticipated repayment date of October 8, 2020 and a final maturity date of October 10, 2045 (the “2015-1C Tower Securities”). The fixed interest rate of the 2015-1C Tower Securities is 3.156% per annum, payable monthly. The Company incurred financing fees of $11.2 million in relation to this tra nsaction, which are being amortized through the anticipated repayment date of the 2015-1C Tower Securities. 2016-1C Tower Securities On July 7, 2016, the Company, through the Trust, issued $700.0 million of Secured Tower Revenue Securities Series 2016-1C, which have an anticipated repayment date of July 9, 2021 and a final maturity date of July 10, 2046 (the “2016-1C Tower Securities”). The fixed interest rate of the 2016-1C Tower Securities is 2.877% per annum, payable monthly. The Company incurred financing fees of $9.5 million in relation to this transaction, which are being amortized through the anticipated repayment date of the 2016-1C Tower Securities. 2017-1C Tower Securities On April 17, 2017, the Company, through the Trust, issued $760.0 million of Secured Tower Revenue Securities Series 2017-1C, which have an anticipated repayment date of April 11, 2022 and a final maturity date of April 9, 2047 (the “2017-1C Tower Securities”). The fixed interest rate on the 2017-1C Tower Securities is 3.168% per annum, payable monthly. Net proceeds from this offering were used to prepay the entire $610.0 million aggregate principal amount, as well as accrued and unpaid interest, of the 2012-1C Tower Securities and for general corporate purposes. The Company incurred financing fees of $10.2 million in relation to this transaction, which are being amortized through the anticipated repayment date of the 2017-1C Tower Securities. In addition, to satisfy certain risk retention requirements of Regulation RR promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), SBA Guarantor, LLC, a wholly owned subsidiary, purchased $40.0 million of Secured Tower Revenue Securities Series 2017-1R issued by the Trust, which have an anticipated repayment date of April 11, 2022 and a final maturity date of April 9, 2047 (the “2017-1R Tower Securities”). The fixed interest rate on the 2017-1R Tower Securities is 4.459% per annum, payable monthly. Principal and interest payments made on the 2017-1R Tower Securities eliminate in consolidation. 2018-1C Tower Securities On March 9, 2018, the Company, through the Trust, issued $640.0 million of Secured Tower Revenue Securities Series 2018-1C, which have an anticipated repayment date of March 9, 2023 and a final maturity date of March 9, 2048 (the “2018-1C Tower Securities”). The fixed interest rate on the 2018-1C Tower Securities is 3.448% per annum, payable monthly. Net proceeds from this offering, in combination with borrowings under the Revolving Credit Facility, were used to repay the entire aggregate principal amount of the 2013-1C Tower Securities ( $425.0 million) and 2013-1D Tower Securities ( $330.0 million), as well as accrued and unpaid interest. The Company incurred financing fees of $8.5 million in relation to this transaction, which are being amortized through the anticipated repayment date of the 2018-1C Tower Securities. In addition, to satisfy certain risk retention requirements of Regulation RR promulgated under the Exchange Act, SBA Guarantor, LLC, a wholly owned subsidiary, purchased $33.7 million of Secured Tower Revenue Securities Series 2018-1R issued by the Trust. These securities have an anticipated repayment date of March 9, 2023 and a final maturity date of March 9, 2048 (the “2018-1R Tower Securities”). The fixed interest rate on the 2018-1R Tower Securities is 4.949% per annum, payable monthly. Principal and interest payments made on the 2018-1R Tower Securities eliminate in consolidation. In connection with the issuance of the 2018-1C Tower Securities, the non-recourse mortgage loan was increased by $673.7 million (but decreased by a net of $81.3 million after giving effect to prepayment of the loan components relating to the 2013-1C Tower Securities and 2013-1D Tower Securities). The new loan, after eliminating the risk retention securities, accrues interest at the same rate as the 2018-1C Tower Securities and is subject to all other material terms of the existing mortgage loan, including collateral and interest rate after the anticipated repayment date. Debt Covenants As of March 31, 2019 , the Borrowers met the debt service coverage ratio required by the mortgage loan agreement and were in compliance with all other covenants as set forth in the agreement. Senior Notes 2014 Senior Notes On July 1, 2014, the Company issued $750.0 million of unsecured senior notes due July 15, 2022 (the “2014 Senior Notes”). The 2014 Senior Notes accrue interest at a rate of 4.875% per annum and were issued at 99.178% of par value. Interest on the 2014 Senior Notes is due semi-annually on January 15 and July 15 of each year. The Company incurred financing fees of $11.6 million in relation to this transaction, which are being amortized through the maturity date. The 2014 Senior Notes are subject to redemption in whole or in part at the redemption prices set forth in the indenture agreement plus accrued and unpaid interest. The Company may redeem the 2014 Senior Notes during the twelve-month period beginning on the following dates at the following redemption prices: July 15, 2019 at 101.219% or July 15, 2020 until maturity at 100.000% of the principal amount of the 2014 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest. 2016 Senior Notes On August 15, 2016, the Company issued $1.1 billion of unsecured senior notes due September 1, 2024 (the “2016 Senior Notes”). The 2016 Senior Notes accrue interest at a rate of 4.875% per annum and were issued at 99.178% of par value. Interest on the 2016 Senior Notes is due semi-annually on March 1 and September 1 of each year, beginning on March 1, 2017. The Company incurred financing fees of $12.8 million in relation to this transaction, which are being amortized through the maturity date. Net proceeds from this offering and cash on hand were used to redeem $800.0 million , the aggregate principal amount outstanding, of Telecommunications’ 5.75% Senior Notes and $250.0 million of the Company’s 5.625% Senior Notes and pay the associated call premiums. The 2016 Senior Notes are subject to redemption in whole or in part on or after September 1, 2019 at the redemption prices set forth in the indenture agreement plus accrued and unpaid interest. Prior to September 1, 2019, the Company may at its option redeem up to 35% of the aggregate principal amount of the 2016 Senior Notes originally issued at a redemption price of 104.875% of the principal amount of the 2016 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest with the net proceeds of certain equity offerings. The Company may redeem the 2016 Senior Notes during the twelve-month period beginning on the following dates at the following redemption prices: September 1, 2019 at 103.656% , September 1, 2020 at 102.438% , September 1, 2021 at 101.219% , or September 1, 2022 until maturity at 100.000% , of the principal amount of the 2016 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest. 2017 Senior Notes On October 13, 2017, the Company issued $750.0 million of unsecured senior notes due October 1, 2022 (the “2017 Senior Notes”). The 2017 Senior Notes accrue interest at a rate of 4.0% per annum. Interest on the 2017 Senior Notes is due semi-annually on April 1 and October 1 of each year, beginning on April 1, 2018. The Company incurred financing fees of $8.9 million in relation to this transaction, which are being amortized through the maturity date. Net proceeds from this offering were used to repay $460.0 million outstanding under the Revolving Credit Facility and for general corporate purposes. The 2017 Senior Notes are subject to redemption in whole or in part on or after October 1, 2019 at the redemption prices set forth in the indenture agreement plus accrued and unpaid interest. Prio r to October 1, 2020, the Company may, at its option, redeem up to 35% of the aggregate principal amount of the 2017 Senior Notes originally issued at a redemption price of 104.000% of the principal amount of the 2017 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest with the net proceeds of certain equity offerings. The Company may redeem the 2017 Senior Notes during the twelve-month period beginning on the following dates at the following redemption prices: October 1, 2019 at 102.000% , October 1, 2020 at 101.000% , or October 1, 2021 until maturity at 100.000% , of the principal amount of the 2017 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 11. SHAREHOLDERS’ EQUITY Common Stock Equivalents The Company has outstanding stock options and restricted stock units which were considered in the Company’s diluted earnings per share calculation (see Note 15). Stock Repurchases On February 16, 2018, the Company’s Board of Directors authorized a $1.0 billion stock repurchase plan, replacing the plan authorized on January 12, 2017. This plan authorizes the Company to purchase, from time to time, up to $1.0 billion of the outstanding Class A common stock through open market repurchases in compliance with Rule 10b-18 under the Exchange Act and/or in privately negotiated transactions at management’s discretion based on market and business conditions, applicable legal requirements and other factors. Shares repurchased are retired. The plan has no time de adline and will continue until otherwise modified or terminated by the Company’s Board of Directors at any time in its sole discretion. During the three months ended March 31, 2019 , t he Company did no t repurchase any shares of its Class A common stock. As of the date of this filing, the Company had $204.5 million of authorization remaining under the current stock repurchase plan. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 12. STOCK-BASED COMPENSATION Stock Options The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model with the assumptions included in the table below. The Company uses a combination of historical data and historical volatility to establish the expected volatility, as well as to estimate the expected option life. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. The following assumptions were used to estimate the fair value of options granted using the Black-Scholes option-pricing model: For the three months ended March 31, 2019 2018 Risk free interest rate 2.47% 2.57% Dividend yield 1.3% 0.7% Expected volatility 20% 22% Expected lives 4.6 years 4.6 years The following table summarizes the Company’s activities with r espect to its stock option plans for the three months ended March 31, 2019 as follows (dollars and shares in thousands, except for per share data): Weighted- Weighted-Average Average Remaining Number Exercise Price Contractual Aggregate of Shares Per Share Life (in years) Intrinsic Value Outstanding at December 31, 2018 4,816 $ 114.48 Granted 1,035 $ 182.30 Exercised (663) $ 102.44 Forfeited/canceled (33) $ 127.79 Outstanding at March 31, 2019 5,155 $ 129.57 4.6 $ 361,222 Exercisable at March 31, 2019 2,550 $ 108.03 3.4 $ 233,659 Unvested at March 31, 2019 2,605 $ 150.67 5.9 $ 127,563 The weighted-average per share fair value of options granted during the three months ended March 31, 2019 was $33.84 . The total intrinsic value for options exercised during the three months ended March 31, 2019 was $54.1 million. Restricted Stock Units The following table summarizes the Company’s restricted stock unit activity for the three months ended March 31, 2019 : Weighted-Average Number of Grant Date Fair Shares Value per Share (in thousands) Outstanding at December 31, 2018 324 $ 128.69 Granted 126 $ 182.30 Vested (123) $ 125.37 Forfeited/canceled (5) $ 135.24 Outstanding at March 31, 2019 322 $ 150.94 During 2018, the Board of Directors adopted a retirement policy applicable to all employees receiving equity as part of their compensation plan. This policy is effective January 1, 2019. Historically, all unvested outstanding equity awards were forfeited upon termination of employment and any options that were vested but unexercised would be forfeited 90 days after the termination of employment. The new retirement policy allows employees that meet certain conditions to vest or continue vesting in outstanding equity awards following retirement and extends the time the employee has to exercise vested and outstanding awards. As a result of this policy, stock compensation expense related to the adoption of the policy resulted in an acceleration of unrecognized stock compensation expense of approximately $11.2 million and $7.3 million in the first and second quarter of 2019, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 13. INCOME TAXES The primary reasons for the difference between the Company’s effective tax rate and the U.S. statutory rate are the Company’s REIT election and the Company’s full valuation allowance on the net deferred tax assets of the U.S. taxable REIT subsidiary (“TRS”). The Company has concluded that it is not more likely than not that its deferred tax assets will be realized and has recorded a full valuation allowance. A foreign tax provision is recognized because certain foreign subsidiaries of the Company have profitable operations or are in a net deferred tax liability position. The Company elected to be taxed as a REIT commencing with its taxable year ended December 31, 2016. As a REIT, the Company generally will be entitled to a deduction for dividends that it pays, and therefore, not subject to U.S. federal corporate income tax on that portion of its net income that it distributes to its shareholders. As a REIT, the Company will continue to pay U.S. federal income tax on earnings, if any, from assets and operations held through its TRSs. These assets and operations currently consist primarily of the Company’s site development services and its international operations. The Company’s international operations would continue to be subject, as applicable, to foreign taxes in the jurisdictions in which those operations are located. The Company may also be subject to a variety of taxes, including payroll taxes and state, local, and foreign income, property, and other taxes on its assets and operations. The Company’s determination as to the timing and amount of future dividend distributions will be based on a number of factors, including REIT distribution requirements, its existing federal net operating losses (“NOLs”) of approximately $755.4 million as of December 31, 2018, the Company’s financial condition, earnings, debt covenants, and other possible uses of such funds. The Company may use these NOLs to offset its REIT taxable income, and thus any required distributions to shareholders may be reduced or eliminated until such time as the NOLs have been fully utilized. |
Segment Data
Segment Data | 3 Months Ended |
Mar. 31, 2019 | |
Segment Data [Abstract] | |
Segment Data | 14. SEGMENT DATA The Company operates principally in two business segments: site leasing and site development. The Company’s site leasing business includes two reportable segments, domestic site leasing and international site leasing. The Company’s business segments are strategic business units that offer different services. They are managed separately based on the fundamental differences in their operations. The site leasing segment includes results of the managed and sublease businesses. The site development segment includes the results of both consulting and construction related activities. The Company’s Chief Operating Decision Maker utilizes segment operating profit and operating income as his two measures of segment profit in assessing performance and allocating resources at the reportable segment level. The Company has applied the aggregation criteria to operations within the international site leasing segment on a basis that is consistent with management’s review of information and performance evaluations of the individual markets in this region. Revenues, cost of revenues (exclusive of depreciation, accretion and amortization), capital expenditures (including assets acquired through the issuance of shares of the Company’s Class A common stock) and identifiable assets pertaining to the segments in which the Company continues to operate are presented below. Domestic Site Int'l Site Site Not Identified Leasing Leasing Development by Segment Total For the three months ended March 31, 2019 (in thousands) Revenues $ 362,838 $ 89,345 $ 41,110 $ — $ 493,293 Cost of revenues (2) 65,114 27,600 31,101 — 123,815 Operating profit 297,724 61,745 10,009 — 369,478 Selling, general, and administrative 28,893 5,688 5,706 10,672 50,959 Acquisition and new business initiatives related adjustments and expenses 708 1,729 — — 2,437 Asset impairment and decommission costs 3,634 2,137 — — 5,771 Depreciation, amortization and accretion 130,244 38,795 562 1,437 171,038 Operating income (loss) 134,245 13,396 3,741 (12,109) 139,273 Other expense (principally interest expense and other income (expense)) (103,077) (103,077) Income before income taxes 36,196 Cash capital expenditures (3) 61,509 29,517 925 575 92,526 For the three months ended March 31, 2018 Revenues $ 341,707 $ 88,835 $ 27,760 $ — $ 458,302 Cost of revenues (2) 65,015 27,802 22,520 — 115,337 Operating profit 276,692 61,033 5,240 — 342,965 Selling, general, and administrative 19,339 6,614 4,077 6,019 36,049 Acquisition and new business initiatives related adjustments and expenses 1,786 1,258 — — 3,044 Asset impairment and decommission costs 6,726 1,502 278 — 8,506 Depreciation, amortization and accretion 123,458 39,680 642 1,618 165,398 Operating income (loss) 125,383 11,979 243 (7,637) 129,968 Other expense (principally interest expense and other income (expense)) (89,841) (89,841) Income before income taxes 40,127 Cash capital expenditures (3) 71,019 77,056 267 636 148,978 Domestic Site Int'l Site Site Not Identified Leasing Leasing Development by Segment (1) Total Assets (in thousands) As of March 31, 2019 $ 6,507,029 $ 2,653,344 $ 67,784 $ 84,602 $ 9,312,759 As of December 31, 2018 $ 5,035,826 $ 2,042,800 $ 60,775 $ 74,306 $ 7,213,707 (1) Assets not identified by segment consist primarily of general corporate assets. (2) Excludes depreciation, amortization, and accretion. (3) Includes cash paid for capital expenditures and acquisitions and financing leases. Other than Brazil, no foreign country represented a material amount of the Company’s total revenues in any of the periods presented. Site leasing revenue in Brazil was $56.0 million and $61.2 million for the three months ended March 31, 2019 and 2018 , respectively. Total long-lived assets in Brazil were $1,005.6 million and $1,031.6 million as of March 31, 2019 and December 31, 2018 , respectively . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. EARNINGS PER SHARE Basic earnings per share was computed by dividing net income attributable to common shareholders by the weighted-average number of shares of Common Stock outstanding for each respective period. Diluted earnings per share was calculated by dividing net income attributable to common shareholders by the weighted-average number of shares of Common Stock outstanding adjusted for any dilutive Common Stock equivalents, including unvested restricted stock and shares issuable upon exercise of stock options as determined under the “If-Converted” method and also Common Stock warrants as determined under the “Treasury Stock” method. The following table sets forth basic and diluted net income per common share for the three months ended March 31, 2019 and 2018 (in thousands, except per share data): For the three months ended March 31, 2019 2018 Numerator: Net income $ 25,989 $ 31,545 Denominator: Basic weighted-average shares outstanding 112,708 116,494 Dilutive impact of stock options and restricted shares 1,636 1,799 Diluted weighted-average shares outstanding 114,344 118,293 Net income per common share: Basic $ 0.23 $ 0.27 Diluted $ 0.23 $ 0.27 For the three months ended March 31, 2019 and 2018 , the diluted weighted average number of common shares outstanding excluded an additional 0.4 million and 0.3 million shares issuable upon exercise of the Company’s stock options because the impact would be anti-dilutive . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 16. COMMITMENTS AND CONTINGENCIES The Company is obligated under various non-cancelable operating leases for land, office space, equipment and site leases . In addition, the Company is obligated under various non-cancelable financing leases for vehicles. The annual minimum lease payments, including fixed rate escalations, as of March 31, 2019 are as follows (in thousands): Finance Leases Operating Leases The remainder of 2019 $ 745 $ 177,031 2020 706 237,124 2021 527 238,369 2022 311 239,272 2023 40 238,827 Thereafter — 3,357,300 Total minimum lease payments 2,329 4,487,923 Less: amount representing interest (130) (1,978,543) Present value of future payments 2,199 2,509,380 Less: current obligations (957) (227,819) Long-term obligations $ 1,242 $ 2,281,561 Tenant (Operating) Leases The annual minimum tower lease income to be received for tower space rental under non-cancelable operating leases, including fixed rate escalations, as of March 31, 2019 is as follows: (in thousands) The remainder of 2019 $ 1,191,719 2020 1,402,778 2021 1,155,058 2022 895,119 2023 680,367 Thereafter 1,938,806 Total $ 7,263,847 |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements should be read in conjunction with the Annual Report on Form 10-K for the fiscal year ended December 31, 2018 for SBA Communications Corporation and its subsidiaries (the “Company”). These financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States. In the opinion of the Company’s management, all adjustments (consisting of normal recurring accruals) considered necessary for fair financial statement presentation have been made. The results of operations for an interim period may not give a true indication of the results for the year. Certain reclassifications have been made to prior year amounts or balances to conform to the presentation adopted in the current year. The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. While the Company believes that such estimates are fair when considered in conjunction with the consolidated financial statements and accompanying notes, the actual amounts, when known, may vary from these estimates. |
Foreign Currency Translation | Foreign Currency Translation All assets and liabilities of foreign subsidiaries that do not utilize the U.S. dollar as its functional currency are translated at period-end rates of exchange, while revenues and expenses are translated at monthly average rates of exchange prevailing during the period. Unrealized remeasurement gains and losses are reported as foreign currency translation adjustments through Accumulated Other Compre hensive Loss in the Consolidated Statement of Shareholders’ Deficit. For foreign subsidiaries where the U.S. dollar is the functional currency, monetary assets and liabilities of such subsidiaries, which are not denominated in U.S. dollars, are remeasured at exchange rates in effect at the balance sheet date, and revenues and expenses are remeasured at monthly average rates prevailing during the year. Unrealized translation gains and losses are reported as other income (expense), net in the Consolidated Statements of Operations. |
Intercompany Loans Subject to Remeasurement | Intercompany Loans Subject to Remeasurement In accordance with Accounting Standards Codification (ASC) 830, the Company remeasures foreign denominated intercompany loans with the corresponding change in the balance being recorded in Other income (expense), net in the Consolidated Statements of Operations as settlement is anticipated or planned in the foreseeable future. The Company recorded a $2.1 million loss and a $1.6 million gain on the remeasurement of intercompany loans for the three months ended March 31, 2019 and 2018 , respectively, due to changes in foreign exchange rates. As of March 31, 2019 and December 31, 2018 , the aggregate amount outstanding under the two intercompany loan agreements with the Company’s Brazilian subsidiary was $471.3 million and $536.9 million, respectively. |
Leases | Leases The Company ado pted ASU No. 2016-02, Leases ( “ Topic 842 ” ) using the modified retrospective adoption method with an effective date of January 1, 2019. The con solidated financial statements for 2019 are presented under the new standard, while the comparative periods presented are not adjusted and continue to be reported in accordance with the Company's historical accounting policy. This standard requires all lessees to recognize a right-of-use asset and a lease liability, initially measured at the prese nt value of the lease payments. The Company has elected not to separate non lease components from the associated lease component for all underlying class es of assets . The adoption of the new lease standard had a si gnificant impact on the Company’ s C on solidated B alance S heets resulting in the recognition of $2.6 billion of right-of-use assets , net , $226.0 million of current lease liabilities, and $2.3 billion of long-term lease liabilities . The right-of-use assets included $266.3 million of rent prepayments and financ ing lease right-of-use assets , net which were previously reported in Prepaid expenses and other current assets, Other assets , and Prop erty, Plant and Equipment, net on the Consolidated Balance Sheets. In addition, the Company recognized a $21.0 million cumulative effect adjustment, net of tax, to Accumulated deficit on the Consolidated Balance Sheet re late d to the unamortized deferred lease costs incurred in prior periods which do not meet the definition of init ial direct costs under Topic 842. The adoption of Topic 842 did not have a significant impact on the Company ’ s lease classification or a material impact on its Consolidated S tatements of O perations and liquidity. Additionally, the adoption of Topic 842 did not have a materi al impact on the Company’s debt covenant compliance under its current agreements. The components of the right-of-use assets and lease liabilities as of March 31, 2019 are as follows (in thousands): Operating lease right-of-use assets, net $ 2,549,143 Financing lease right-of-use assets, net 3,161 Right-of-use assets, net $ 2,552,304 Current operating lease liabilities $ 227,819 Current financing lease liabilities 957 Current lease liabilities $ 228,776 Long-term operating lease liabilities $ 2,281,561 Long-term financing lease liabilities 1,242 Long-term lease liabilities $ 2,282,803 Operating Leases Ground leases. The Company enters into long-term lease contracts for land that underlies its tower structures. Ground lease agreements generally include renewal options which can be exercised exclusively at the Company’s election. In making the determination of the period for which the Company is reasonably certain to remain on the site, the Company will assume optional renewals are reasonably certain of being exercised for the greater of: (1) a period sufficient to cover all tenants under their current committed term where the Company has provided rights to the tower not to exceed the contractual ground lease terms including renewals, and (2) a period sufficient to recover the investment of significant leasehold improvements located on the site. Substantially all leases provide for rent rate escalations. The most common provisions provide for fixed rent escalators which typically average 2 -3% annually. The Company also has ground leases that include consumer price index escalators, particularly in its South American operations. Increases or decreases in lease payments that result from subsequent changes in the index or r ate are accounted for as variable lease payments. Office leases. The Company’s office leases consist of long-term leases for international, regional, and certain site development office locations. Office leases include a single lease component, lease of the office space and sometimes nonlease components such as common a rea maintenance expenses . The lease term for office leases are generally considered to be the contractually committed term. Finance Leases Vehicle leases. The Company leases vehicles that are used in its site development business. These leases are accounted for as financing leases and have lease terms that are contractually committed and do not include optional renewal terms. Discount Rate When available, the Company uses the rate implicit in the lease to discount lease payments to present value. However, the Company ’ s ground leases generally do not provide a readily determinable implicit rate. Therefore, the Company estimates the incremental borrowing rate to discount lease payments based on information available at lease commencement. The Company uses publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates. Lease Cost Variable lease payments includ e escalations based on standard cost of living indexes and are initially recognized using the prevailing index at the date of initial measurement or upon reassessment of the lease term. Subsequent changes in standard cost of living increases are recognized as variable lease costs . Variable lease payments also include contingent rent provisions. The components of lease cost, lease term, and discount rate as of March 31, 2019 are as follows : (in thousands) Amortization of right-of-use assets $ 337 Interest on finance lease liabilities 28 Total finance lease cost 365 Operating lease cost (1) 68,299 Variable lease cost (1) 7,742 Total lease cost $ 76,406 Weighted Average Remaining Lease Term: Operating leases 18.4 years Finance leases 2.9 years Weighted Average Discount Rate: Operating leases 6.1% Finance leases 3.8% Other information: Cash paid for amounts included in measurement of lease liabilities: Cash flows from operating leases $ 59,458 Cash flows from finance leases $ 337 (1) F or the three months ended March 31, 2018 , operating lease cost and variable lease cost were $69.6 million and $6.8 million , respectively. Tenant (Operating) L eases The Company enters into long-term lease contracts with wireless service providers to lease antenna space on towers that it owns or operates. Each tenant lease relates to the lease or use of space at an individual site. Tenant leases are generally for an initial term of five to ten years with multiple 5 -year renewal periods at the option of the tenant. Tenant leases typically contain specific rent escalators, which can be fixed or escalate in accordance with a standard cost of living index, including the renewal option periods. Tenant lease agreements generally include renewal options which can be exercised exclusively at the tenant’s election. The only common exception is if the Company no longer has a right to the ground underlying the site, the lease agreements permit the Company to terminate the lease. Despite high frequency of renewal of options to extend the lease by its tenants, the Company has concluded that the exercise of a renewal option by a tenant is not reasonably certain of occurrence ; therefore , only the current committed term is included in the determination of the lease term. Certain tenant leases provide for a reimbursement of costs incurred by the Company. The Company pays these costs directly and is not relieved of the primary obligation for the expenses. These reimbursements are recorded as r evenue on the Statement s of Operations. Deferred Lease Costs Prior to the adoption of ASU 2016-02, the Company deferred certain initial direct costs associated with the origination of tenant leases and lease amendments and amortized these costs over the remaining lease term. These costs included an allocation of a portion of the employees’ total compensa tion and payroll related benefits related to time spent performing those activities. Such deferred costs were approximately $2.8 million for the three months ended March 31, 2018 . Amortization expense related to these deferred costs was $3.1 million for the three months ended March 31, 2018 and is included in cost of s ite leasing on the Consolidated Statements of Operations. As of December 31, 2018, unamortized deferred lease costs were $27.0 million. ASU 2016-02, defines initial direct costs as incremental costs that would not have been incurred if the lease had not been obtained. These costs, including commissions paid related to the origination of specific tenant leases, will continue to be deferred and amortized over the remaining lease term. Upon adoption, the Company recognized a $21.0 million cumulative effect adjustment, net of tax, to Accumulated deficit on the Consolidated Balance Sheet s . This adjustment reflects the recognition of unamortized deferred lease costs incurred in prior periods which do not meet the definition o f initial direct costs under Topic 842. Initial direct costs were approximately $0.6 million for the three months ended March 31, 2019 . Amortization e xpense related to these deferred costs was $0.4 million for the three months ended March 31, 2019 . As of March 31, 2019 , unamortized deferred lease costs were $4.1 million and were included in other assets on the Consolidated Balance Sheets . |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation [Abstract] | |
Schedule of Right-of-use Assets and Liabilities | Operating lease right-of-use assets, net $ 2,549,143 Financing lease right-of-use assets, net 3,161 Right-of-use assets, net $ 2,552,304 Current operating lease liabilities $ 227,819 Current financing lease liabilities 957 Current lease liabilities $ 228,776 Long-term operating lease liabilities $ 2,281,561 Long-term financing lease liabilities 1,242 Long-term lease liabilities $ 2,282,803 |
Components of Lease Cost, Lease Term, and Discount Rate | (in thousands) Amortization of right-of-use assets $ 337 Interest on finance lease liabilities 28 Total finance lease cost 365 Operating lease cost (1) 68,299 Variable lease cost (1) 7,742 Total lease cost $ 76,406 Weighted Average Remaining Lease Term: Operating leases 18.4 years Finance leases 2.9 years Weighted Average Discount Rate: Operating leases 6.1% Finance leases 3.8% Other information: Cash paid for amounts included in measurement of lease liabilities: Cash flows from operating leases $ 59,458 Cash flows from finance leases $ 337 (1) F or the three months ended March 31, 2018 , operating lease cost and variable lease cost were $69.6 million and $6.8 million , respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Summary of Asset Impairment and Decommission Costs | For the three months ended March 31, 2019 2018 Asset impairment (1) $ 3,303 $ 5,855 Write-off of carrying value of decommissioned towers 2,157 2,001 Other (including third party decommission costs) 311 650 Total asset impairment and decommission costs $ 5,771 $ 8,506 (1) Represents impairment charges resulting from the Company’s regular analysis of whether the future cash flows from certain towers are adequate to recover the carrying value of the investment in those towers. |
Restricted Cash (Tables)
Restricted Cash (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restricted Cash [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | As of As of March 31, 2019 December 31, 2018 Included on Balance Sheet (in thousands) Cash and cash equivalents $ 117,613 $ 143,444 Securitization escrow accounts 23,682 32,261 Restricted cash - current asset Payment and performance bonds 201 203 Restricted cash - current asset Surety bonds and workers compensation 2,375 2,392 Other assets - noncurrent Total cash, cash equivalents, and restricted cash $ 143,871 $ 178,300 |
Costs and Estimated Earnings _2
Costs and Estimated Earnings on Uncompleted Contracts (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Costs and Estimated Earnings on Uncompleted Contracts [Abstract] | |
Summary of Costs and Estimated Earnings on Uncompleted Contracts | As of As of March 31, 2019 December 31, 2018 (in thousands) Costs incurred on uncompleted contracts $ 44,842 $ 38,464 Estimated earnings 18,678 16,655 Billings to date (42,058) (31,952) $ 21,462 $ 23,167 |
Costs and Estimated Earnings on Uncompleted Contracts Accompanying Consolidated Balance Sheets | As of As of March 31, 2019 December 31, 2018 (in thousands) Costs and estimated earnings in excess of billings on uncompleted contracts $ 23,482 $ 23,785 Billings in excess of costs and estimated earnings on uncompleted contracts (included in Other current liabilities) (2,020) (618) $ 21,462 $ 23,167 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Acquisitions [Abstract] | |
Schedule of Acquisition Capital Expenditures | For the three months ended March 31, 2019 2018 (in thousands) Acquisitions of towers and related intangible assets (1) $ 42,148 $ 108,355 Land buyouts and other assets (2) 13,139 9,267 Total cash acquisition capital expenditures $ 55,287 $ 117,622 (1) The three months ended March 31, 2019 excludes $1.7 million of acquisition costs funded through the issuance of 10,000 shares of Class A common stock. (2) In addition, the Company paid $3.8 million and $6.6 million for ground lease extensions and term easements on land underlying the Company’s towers during the three months ended March 31, 2019 and 2018 , respectively. The Company recorded these amounts in prepaid rent on its Consolidated Balance Sheets. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets and Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Prepaid Expenses and Other Current Assets and Other Assets [Abstract] | |
Schedule of Prepaid Expense and Other Current Assets | As of As of March 31, 2019 December 31, 2018 (in thousands) Prepaid ground rent (1) $ 1,649 $ 34,276 Loan receivables — 11,178 Other 20,925 17,672 Total prepaid expenses and other current assets $ 22,574 $ 63,126 (1) Decrease is due to the adoption of ASU 2016-02. Prepaid ground rent was reclassified to Right-of-use assets, net on the Consolidated Balance Sheets in the first quarter of 2019. |
Schedule of Other Assets | As of As of March 31, 2019 December 31, 2018 (in thousands) Prepaid ground rent (1) $ — $ 263,694 Straight-line rent receivable 323,708 322,073 Loan receivables 54,490 49,255 Deferred lease costs, net (1) 4,054 27,020 Deferred tax asset - long term 15,830 18,330 Other 41,527 41,661 Total other assets $ 439,609 $ 722,033 (1) Decrease is due to the adoption of ASU 2016-02. Prepaid ground rent was reclassified from Other assets to Right-of-use assets, net on the Consolidated Balance Sheets in the first quarter of 2019. Deferred lease costs of $23.3 million were written off to Accumulated deficit on the Consolidated Balance Sheets in the first quarter of 2019. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment, Net (Including Assets Held Under Capital Leases) | As of As of March 31, 2019 December 31, 2018 (in thousands) Towers and related components $ 4,986,046 $ 4,951,321 Construction-in-process 33,943 35,756 Furniture, equipment, and vehicles (1) 46,450 54,814 Land, buildings, and improvements 679,823 668,459 Total property and equipment 5,746,262 5,710,350 Less: accumulated depreciation (1) (2,984,937) (2,923,995) Property and equipment, net $ 2,761,325 $ 2,786,355 (1) Financing lease right-of-use assets are included in the prior period but are included in Right-of-use assets, net on the Consolidated Balance Sheets for the current period. |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Intangible Assets, Net [Abstract] | |
Gross and Net Carrying Amounts for each Major Class of Intangible Assets | As of March 31, 2019 As of December 31, 2018 Gross carrying Accumulated Net book Gross carrying Accumulated Net book amount amortization value amount amortization value (in thousands) Current contract intangibles $ 4,417,240 $ (1,998,596) $ 2,418,644 $ 4,394,416 $ (1,928,030) $ 2,466,386 Network location intangibles 1,672,530 (832,222) 840,308 1,669,859 (804,780) 865,079 Intangible assets, net $ 6,089,770 $ (2,830,818) $ 3,258,952 $ 6,064,275 $ (2,732,810) $ 3,331,465 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accrued Expenses [Abstract] | |
Schedule of Accrued Expenses | As of As of March 31, 2019 December 31, 2018 (in thousands) Salaries and benefits $ 7,669 $ 16,015 Real estate and property taxes 7,768 7,928 Unpaid capital expenditures 8,435 12,387 Other 29,662 27,335 Total accrued expenses $ 53,534 $ 63,665 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt [Abstract] | |
Schedule of Principal Values, Fair Values, and Carrying Values of Debt | As of As of March 31, 2019 December 31, 2018 Maturity Date Principal Balance Fair Value Carrying Value Principal Balance Fair Value Carrying Value 2014 Senior Notes Jul. 15, 2022 $ 750,000 $ 761,250 $ 741,839 $ 750,000 $ 735,000 $ 741,273 2016 Senior Notes Sep. 1, 2024 1,100,000 1,108,250 1,084,315 1,100,000 1,034,000 1,083,689 2017 Senior Notes Oct. 1, 2022 750,000 751,875 743,525 750,000 712,500 743,099 2013-2C Tower Securities Apr. 11, 2023 575,000 572,591 569,999 575,000 569,164 569,715 2014-1C Tower Securities Oct. 8, 2019 920,000 916,348 918,442 920,000 914,241 917,728 2014-2C Tower Securities Oct. 8, 2024 620,000 630,112 614,534 620,000 609,665 614,315 2015-1C Tower Securities Oct. 8, 2020 500,000 498,850 496,317 500,000 496,640 495,737 2016-1C Tower Securities Jul. 9, 2021 700,000 693,714 695,474 700,000 691,432 694,994 2017-1C Tower Securities Apr. 11, 2022 760,000 752,856 753,529 760,000 744,496 753,028 2018-1C Tower Securities Mar. 9, 2023 640,000 644,922 633,118 640,000 641,478 632,725 Revolving Credit Facility Apr. 11, 2023 110,000 110,000 110,000 325,000 325,000 325,000 2018 Term Loan Apr. 11, 2025 2,382,000 2,340,315 2,361,956 2,388,000 2,262,630 2,367,250 Total debt $ 9,807,000 $ 9,781,083 $ 9,723,048 $ 10,028,000 $ 9,736,246 $ 9,938,553 Less: current maturities of long-term debt (942,442) (941,728) Total long-term debt, net of current maturities $ 8,780,606 $ 8,996,825 |
Schedule of Cash and Non-Cash Interest Expense | For the three months ended March 31, 2019 2018 Cash Non-cash Cash Non-cash Interest Interest Interest Interest (in thousands) 2014 Senior Notes $ 9,141 $ 196 $ 9,141 $ 187 2016 Senior Notes 13,406 259 13,406 246 2017 Senior Notes 7,500 — 7,500 — 2013 Tower Securities 5,396 — 9,475 — 2014 Tower Securities 12,785 — 12,785 — 2015-1C Tower Securities 3,985 — 3,985 — 2016-1C Tower Securities 5,090 — 5,090 — 2017-1C Tower Securities 6,085 — 6,085 — 2018-1C Tower Securities 5,570 — 1,362 — Revolving Credit Facility 2,836 — 1,601 — 2014 Term Loan — — 13,947 131 2015 Term Loan — — 4,697 169 2018 Term Loan 26,922 186 — — Other (49) — (151) — Total $ 98,667 $ 641 $ 88,923 $ 733 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Schedule of Assumptions Used to Estimate Fair Value of Stock Options | For the three months ended March 31, 2019 2018 Risk free interest rate 2.47% 2.57% Dividend yield 1.3% 0.7% Expected volatility 20% 22% Expected lives 4.6 years 4.6 years |
Summary of Stock Option Activity | Weighted- Weighted-Average Average Remaining Number Exercise Price Contractual Aggregate of Shares Per Share Life (in years) Intrinsic Value Outstanding at December 31, 2018 4,816 $ 114.48 Granted 1,035 $ 182.30 Exercised (663) $ 102.44 Forfeited/canceled (33) $ 127.79 Outstanding at March 31, 2019 5,155 $ 129.57 4.6 $ 361,222 Exercisable at March 31, 2019 2,550 $ 108.03 3.4 $ 233,659 Unvested at March 31, 2019 2,605 $ 150.67 5.9 $ 127,563 |
Summary of Restricted Stock Unit Activity | Weighted-Average Number of Grant Date Fair Shares Value per Share (in thousands) Outstanding at December 31, 2018 324 $ 128.69 Granted 126 $ 182.30 Vested (123) $ 125.37 Forfeited/canceled (5) $ 135.24 Outstanding at March 31, 2019 322 $ 150.94 |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Data [Abstract] | |
Schedule of Segment Reporting Information | Domestic Site Int'l Site Site Not Identified Leasing Leasing Development by Segment Total For the three months ended March 31, 2019 (in thousands) Revenues $ 362,838 $ 89,345 $ 41,110 $ — $ 493,293 Cost of revenues (2) 65,114 27,600 31,101 — 123,815 Operating profit 297,724 61,745 10,009 — 369,478 Selling, general, and administrative 28,893 5,688 5,706 10,672 50,959 Acquisition and new business initiatives related adjustments and expenses 708 1,729 — — 2,437 Asset impairment and decommission costs 3,634 2,137 — — 5,771 Depreciation, amortization and accretion 130,244 38,795 562 1,437 171,038 Operating income (loss) 134,245 13,396 3,741 (12,109) 139,273 Other expense (principally interest expense and other income (expense)) (103,077) (103,077) Income before income taxes 36,196 Cash capital expenditures (3) 61,509 29,517 925 575 92,526 For the three months ended March 31, 2018 Revenues $ 341,707 $ 88,835 $ 27,760 $ — $ 458,302 Cost of revenues (2) 65,015 27,802 22,520 — 115,337 Operating profit 276,692 61,033 5,240 — 342,965 Selling, general, and administrative 19,339 6,614 4,077 6,019 36,049 Acquisition and new business initiatives related adjustments and expenses 1,786 1,258 — — 3,044 Asset impairment and decommission costs 6,726 1,502 278 — 8,506 Depreciation, amortization and accretion 123,458 39,680 642 1,618 165,398 Operating income (loss) 125,383 11,979 243 (7,637) 129,968 Other expense (principally interest expense and other income (expense)) (89,841) (89,841) Income before income taxes 40,127 Cash capital expenditures (3) 71,019 77,056 267 636 148,978 Domestic Site Int'l Site Site Not Identified Leasing Leasing Development by Segment (1) Total Assets (in thousands) As of March 31, 2019 $ 6,507,029 $ 2,653,344 $ 67,784 $ 84,602 $ 9,312,759 As of December 31, 2018 $ 5,035,826 $ 2,042,800 $ 60,775 $ 74,306 $ 7,213,707 (1) Assets not identified by segment consist primarily of general corporate assets. (2) Excludes depreciation, amortization, and accretion. (3) Includes cash paid for capital expenditures and acquisitions and financing leases. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Weighted-Average Shares of Common Stock Outstanding used in Calculation of Basic and Diluted Earnings Per Share | For the three months ended March 31, 2019 2018 Numerator: Net income $ 25,989 $ 31,545 Denominator: Basic weighted-average shares outstanding 112,708 116,494 Dilutive impact of stock options and restricted shares 1,636 1,799 Diluted weighted-average shares outstanding 114,344 118,293 Net income per common share: Basic $ 0.23 $ 0.27 Diluted $ 0.23 $ 0.27 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Annual Minimum Lease Payments | Finance Leases Operating Leases The remainder of 2019 $ 745 $ 177,031 2020 706 237,124 2021 527 238,369 2022 311 239,272 2023 40 238,827 Thereafter — 3,357,300 Total minimum lease payments 2,329 4,487,923 Less: amount representing interest (130) (1,978,543) Present value of future payments 2,199 2,509,380 Less: current obligations (957) (227,819) Long-term obligations $ 1,242 $ 2,281,561 |
Annual Minimum Lease Income | (in thousands) The remainder of 2019 $ 1,191,719 2020 1,402,778 2021 1,155,058 2022 895,119 2023 680,367 Thereafter 1,938,806 Total $ 7,263,847 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Basis Of Presentation [Line Items] | |||||
Gain (loss) on remeasurement of U.S. dollar denominated intercompany loan | $ (2,100) | $ 1,600 | |||
Intercompany foreign currency outstanding balance | 471,300 | $ 536,900 | |||
Right-of-use assets, net | 2,552,304 | [1] | $ 2,600,000 | ||
Current lease liabilities | 228,776 | [1] | 226,000 | ||
Long-term lease liabilities | 2,282,803 | [1] | 2,300,000 | ||
Rent prepayments and financing lease right-of-use assets included in right-of-use assets | 266,300 | ||||
Cumulative effect of adoption | $ (20,968) | $ (21,000) | |||
Tenant leases, renewal term | 5 years | ||||
Deferred lease costs | $ 600 | 2,800 | |||
Amortization expense | 400 | $ 3,100 | |||
Unamortized deferred lease costs | $ 4,100 | $ 27,000 | |||
Minimum [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Fixed rent escalation | 2.00% | ||||
Tenant leases, lease term | 5 years | ||||
Maximum [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Fixed rent escalation | 3.00% | ||||
Tenant leases, lease term | 10 years | ||||
[1] | On January 1, 2019, the Company adopted ASU 2016-02 which requires lessees to recognize a right-of-use asset and a lease liability. Upon adoption, certain assets and liabilities were reclassified to Right-of-use assets, net and lease liabilities in accordance with provisions of ASU 2016-02. See Note 1 for further discussion. |
Basis of Presentation (Schedule
Basis of Presentation (Schedule of Right-of-use Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | |
Basis of Presentation [Abstract] | |||
Operating lease right-of-use assets, net | $ 2,549,143 | ||
Financing lease right-of-use assets, net | 3,161 | ||
Right-of-use assets, net | 2,552,304 | [1] | $ 2,600,000 |
Current operating lease liabilities | 227,819 | ||
Current financing lease liabilities | 957 | ||
Current lease liabilities | 228,776 | [1] | 226,000 |
Long-term operating lease liabilities | 2,281,561 | ||
Long-term financing lease liabilities | 1,242 | ||
Long-term lease liabilities | $ 2,282,803 | [1] | $ 2,300,000 |
[1] | On January 1, 2019, the Company adopted ASU 2016-02 which requires lessees to recognize a right-of-use asset and a lease liability. Upon adoption, certain assets and liabilities were reclassified to Right-of-use assets, net and lease liabilities in accordance with provisions of ASU 2016-02. See Note 1 for further discussion. |
Basis of Presentation (Componen
Basis of Presentation (Components of Lease Cost, Lease Term, and Discount Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basis of Presentation [Abstract] | ||
Amortization of right-of-use assets | $ 337 | |
Interest on finance lease liabilities | 28 | |
Total finance lease cost | 365 | |
Operating lease cost | 68,299 | $ 69,600 |
Variable lease cost | 7,742 | $ 6,800 |
Total lease cost | $ 76,406 | |
Weighted Average Remaining Lease Term: Operating leases | 18 years 4 months 24 days | |
Weighted Average Remaining Lease Term: Finance leases | 2 years 10 months 24 days | |
Weighted Average Discount Rate: Operating leases | 6.10% | |
Weighted Average Discount Rate: Finance leases | 3.80% | |
Cash paid for amounts included in measurement of lease liabilities: Cash flows from operating leases | $ 59,458 | |
Cash paid for amounts included in measurement of lease liabilities: Cash flows from finance leases | $ 337 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | Feb. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Accrued earnouts | $ 400 | $ 500 | ||
Performance targets, maximum potential obligation | 10,300 | 13,300 | ||
Treasury securities | 200 | 200 | ||
Held-to-maturity investments, carrying value | 200 | 200 | ||
Held-to-maturity investments, fair value | 200 | 200 | ||
Purchase of investments | 150,053 | $ 686 | ||
Proceeds from sale of investments | 150,557 | |||
Business Combinations and Asset Acquisitions [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Performance targets, maximum potential obligation | 600 | $ 700 | ||
2018 Term Loan [Member] | Interest Rate Swap [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loan period | 4 years | |||
Notional amount | $ 1,200,000 | |||
Derivative basis spread on variable interest rate | 2.00% | |||
Derivative fixed interest rate | 4.495% | |||
Liability fair value of swap | $ 15,300 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Asset Impairment and Decommission Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Asset impairment | $ 3,303 | $ 5,855 |
Other (including third party decommission costs) | 311 | 650 |
Total asset impairment and decommission costs | 5,771 | 8,506 |
Decommissioned Towers [Member] | ||
Write-off carrying value of decommissioned towers | $ 2,157 | $ 2,001 |
Restricted Cash (Narrative) (De
Restricted Cash (Narrative) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Surety, payment and performance bonds | $ 40,600,000 | $ 40,500,000 |
Collateral payment for performance bonds | 0 | 0 |
Workers Compensation Policy [Member] | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
Collateral | $ 2,300,000 | $ 2,200,000 |
Restricted Cash (Schedule of Ca
Restricted Cash (Schedule of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Restricted Cash And Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 117,613 | $ 143,444 | ||
Restricted cash - current asset | 23,883 | 32,464 | ||
Total cash, cash equivalents, and restricted cash | 143,871 | 178,300 | $ 164,820 | $ 104,295 |
Securitization Escrow Accounts [Member] | Restricted Cash - Current Asset [Member] | ||||
Restricted Cash And Cash Equivalents Items [Line Items] | ||||
Restricted cash - current asset | 23,682 | 32,261 | ||
Payment and Performance Bonds [Member] | Restricted Cash - Current Asset [Member] | ||||
Restricted Cash And Cash Equivalents Items [Line Items] | ||||
Restricted cash - current asset | 201 | 203 | ||
Surety Bonds and Workers Compensation [Member] | Other Assets - Noncurrent [Member] | ||||
Restricted Cash And Cash Equivalents Items [Line Items] | ||||
Restricted cash - noncurrent asset | $ 2,375 | $ 2,392 |
Costs and Estimated Earnings _3
Costs and Estimated Earnings on Uncompleted Contracts (Narrative) (Details) - customer | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Costs and Estimated Earnings on Uncompleted Contracts [Abstract] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts, net of billings in excess of costs and estimated earnings, percentage comprised by significant customers | 97.70% | 96.30% |
Number of significant customers | 8 | 8 |
Costs and Estimated Earnings _4
Costs and Estimated Earnings on Uncompleted Contracts (Summary of Costs and Estimated Earnings on Uncompleted Contracts) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Costs and Estimated Earnings on Uncompleted Contracts [Abstract] | ||
Costs incurred on uncompleted contracts | $ 44,842 | $ 38,464 |
Estimated earnings | 18,678 | 16,655 |
Billings to date | (42,058) | (31,952) |
Costs and estimated earnings on uncompleted contracts | $ 21,462 | $ 23,167 |
Costs and Estimated Earnings _5
Costs and Estimated Earnings on Uncompleted Contracts (Costs and Estimated Earnings on Uncompleted Contracts Accompanying Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Costs and Estimated Earnings on Uncompleted Contracts [Abstract] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ 23,482 | $ 23,785 |
Billings in excess of costs and estimated earnings on uncompleted contracts (included in Other current liabilities) | (2,020) | (618) |
Costs and estimated earnings on uncompleted contracts | $ 21,462 | $ 23,167 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)entityitem | |
Business Acquisition [Line Items] | |
Acquisition costs paid through the issuance of common stock | $ 1.7 |
Other Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Number of towers acquired | item | 54 |
Property and equipment | $ 6.6 |
Intangible assets | 33.6 |
Working capital adjustments | $ 1.9 |
Business Combination [Member] | |
Business Acquisition [Line Items] | |
Number of businesses acquired | entity | 1 |
Consideration transferred | $ 3 |
Acquisitions (Schedule of Acqui
Acquisitions (Schedule of Acquisition Capital Expenditures) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Acquisitions [Abstract] | ||
Acquisitions of towers and related intangible assets | $ 42,148 | $ 108,355 |
Land buyouts and other assets | 13,139 | 9,267 |
Total cash acquisition capital expenditures | 55,287 | 117,622 |
Acquisition costs paid through the issuance of common stock | $ 1,700 | |
Common stock issued for acquisition costs | 10,000 | |
Ground lease extensions | $ 3,800 | $ 6,600 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets and Other Assets (Schedule of Prepaid Expense and Other Current Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Prepaid Expenses and Other Current Assets and Other Assets [Abstract] | |||
Prepaid ground rent | $ 1,649 | $ 34,276 | |
Loan receivables | 11,178 | ||
Other | 20,925 | 17,672 | |
Total prepaid expenses and other current assets | [1] | $ 22,574 | $ 63,126 |
[1] | On January 1, 2019, the Company adopted ASU 2016-02 which requires lessees to recognize a right-of-use asset and a lease liability. Upon adoption, certain assets and liabilities were reclassified to Right-of-use assets, net and lease liabilities in accordance with provisions of ASU 2016-02. See Note 1 for further discussion. |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets and Other Assets (Schedule Of Other Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other Assets, Noncurrent [Line Items] | ||
Prepaid ground rent | $ 263,694 | |
Straight-line rent receivable | $ 323,708 | 322,073 |
Loan receivables | 54,490 | 49,255 |
Deferred lease costs, net | 4,054 | 27,020 |
Deferred tax asset - long term | 15,830 | 18,330 |
Other | 41,527 | 41,661 |
Total other assets | 439,609 | 722,033 |
Accumulated deficit | 5,131,347 | $ 5,136,368 |
Accounting Standards Update 2016-02 [Member] | ||
Other Assets, Noncurrent [Line Items] | ||
Accumulated deficit | $ 23,300 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Property and Equipment, Net [Abstract] | |||
Depreciation expense | $ 69,200 | $ 65,000 | |
Unpaid capital expenditures | $ 8,435 | $ 12,387 |
Property and Equipment, Net (Pr
Property and Equipment, Net (Property and Equipment, Net (Including Assets Held Under Capital Leases)) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 5,746,262 | $ 5,710,350 | |
Less: accumulated depreciation | (2,984,937) | (2,923,995) | |
Property and equipment, net | [1] | 2,761,325 | 2,786,355 |
Towers and Related Components [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 4,986,046 | 4,951,321 | |
Construction-In-Process [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 33,943 | 35,756 | |
Furniture, Equipment and Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 46,450 | 54,814 | |
Land, Buildings and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 679,823 | $ 668,459 | |
[1] | On January 1, 2019, the Company adopted ASU 2016-02 which requires lessees to recognize a right-of-use asset and a lease liability. Upon adoption, certain assets and liabilities were reclassified to Right-of-use assets, net and lease liabilities in accordance with provisions of ASU 2016-02. See Note 1 for further discussion. |
Intangible Assets, Net (Narrati
Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Intangible Assets, Net [Abstract] | ||
Amortization expense | $ 101.8 | $ 100.3 |
Intangible Assets, Net (Gross a
Intangible Assets, Net (Gross and Net Carrying Amounts for each Major Class of Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 6,089,770 | $ 6,064,275 |
Accumulated amortization | (2,830,818) | (2,732,810) |
Net book value | 3,258,952 | 3,331,465 |
Current Contract Intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 4,417,240 | 4,394,416 |
Accumulated amortization | (1,998,596) | (1,928,030) |
Net book value | 2,418,644 | 2,466,386 |
Network Location Intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,672,530 | 1,669,859 |
Accumulated amortization | (832,222) | (804,780) |
Net book value | $ 840,308 | $ 865,079 |
Accrued Expenses (Schedule of A
Accrued Expenses (Schedule of Accrued Expenses) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accrued Expenses [Abstract] | ||
Salaries and benefits | $ 7,669 | $ 16,015 |
Real estate and property taxes | 7,768 | 7,928 |
Unpaid capital expenditures | 8,435 | 12,387 |
Other | 29,662 | 27,335 |
Total accrued expenses | $ 53,534 | $ 63,665 |
Debt (Revolving Credit Facility
Debt (Revolving Credit Facility under the Senior Credit Agreement) (Narrative) (Details) - USD ($) | Oct. 13, 2017 | Apr. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | May 08, 2019 |
Line of Credit Facility [Line Items] | |||||
Repayments of revolving credit facility | $ 215,000,000 | $ 70,000,000 | |||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,250,000,000 | ||||
Line of credit facility, commitment fee | 0.25% | ||||
Revolving credit facility, maturity date | Apr. 11, 2023 | ||||
Line of credit facility, outstanding | $ 110,000,000 | ||||
Repayments of revolving credit facility | $ 460,000,000 | $ 215,000,000 | |||
Revolving credit facility, effective interest rate | 4.16% | ||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, outstanding | $ 50,000,000 | ||||
Repayments of revolving credit facility | $ 60,000,000 | ||||
Minimum [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate | 1.125% | ||||
Line of credit facility, commitment fee | 0.20% | ||||
Minimum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate | 0.125% | ||||
Maximum [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate | 1.75% | ||||
Line of credit facility, commitment fee | 0.25% | ||||
Maximum [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable interest rate | 0.75% |
Debt (Term Loans under the Seni
Debt (Term Loans under the Senior Credit Agreement) (Narrative) (Details) - USD ($) | Feb. 01, 2019 | Apr. 11, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||||
Debt instrument, principal balance | $ 9,807,000,000 | $ 10,028,000,000 | |||
2014 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 1,500,000,000 | ||||
Debt instrument, maturity date | Mar. 24, 2021 | ||||
Term Loan, percentage of par value | 99.75% | ||||
Quarterly payments | $ 3,800,000 | ||||
Financing fees | 14,100,000 | ||||
Repayment of term loans | $ 1,443,800,000 | $ 3,800,000 | |||
Write-off of deferred financing fees | 5,800,000 | ||||
Discount related to debt | 1,700,000 | ||||
2015 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 500,000,000 | ||||
Debt instrument, maturity date | Jun. 10, 2022 | ||||
Term Loan, percentage of par value | 99.00% | ||||
Quarterly payments | $ 1,300,000 | ||||
Financing fees | $ 5,500,000 | ||||
Repayment of term loans | 486,300,000 | $ 1,300,000 | |||
Write-off of deferred financing fees | 3,200,000 | ||||
Discount related to debt | 3,100,000 | ||||
2018 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 2,400,000,000 | ||||
Debt instrument, maturity date | Apr. 11, 2025 | ||||
Term Loan, percentage of par value | 99.75% | ||||
Quarterly payments | $ 6,000,000 | ||||
Accruing interest rate during the period | 4.50% | ||||
Debt instrument, principal balance | $ 2,382,000,000 | $ 2,388,000,000 | |||
Financing fees | 16,800,000 | ||||
Repayment of term loans | $ 6,000,000 | ||||
2018 Term Loan [Member] | Interest Rate Swap [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan period | 4 years | ||||
Notional amount | $ 1,200,000,000 | ||||
Derivative basis spread on variable interest rate | 2.00% | ||||
Derivative fixed interest rate | 4.495% | ||||
2014 and 2015 Term Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayment of term loans | $ 1,930,000,000 | ||||
Base Rate [Member] | 2014 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 1.25% | ||||
Base Rate [Member] | 2015 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 1.25% | ||||
Base Rate [Member] | 2018 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 1.00% | ||||
Eurodollar [Member] | 2014 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 2.25% | ||||
Eurodollar [Member] | 2015 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 2.25% | ||||
Eurodollar [Member] | 2018 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 2.00% | ||||
Minimum [Member] | Base Rate [Member] | 2014 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 0.00% | ||||
Minimum [Member] | Base Rate [Member] | 2015 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 0.00% | ||||
Minimum [Member] | Base Rate [Member] | 2018 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 0.00% | ||||
Minimum [Member] | Eurodollar [Member] | 2014 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 0.00% | ||||
Minimum [Member] | Eurodollar [Member] | 2015 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 0.00% | ||||
Minimum [Member] | Eurodollar [Member] | 2018 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 0.00% |
Debt (Secured Tower Revenue Sec
Debt (Secured Tower Revenue Securities) (Narrative) (Details) - USD ($) | Mar. 09, 2018 | Apr. 17, 2017 | Jul. 07, 2016 | Oct. 14, 2015 | Oct. 15, 2014 | Apr. 18, 2013 | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||||||
Debt instrument, principal balance | $ 9,807,000,000 | $ 10,028,000,000 | ||||||
2012-1C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of long-term debt | $ 610,000,000 | |||||||
2013 Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,330,000,000 | |||||||
Financing fees | $ 25,500,000 | |||||||
Debt instrument, weighted average interest rate | 3.218% | |||||||
2013-1C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 425,000,000 | |||||||
Debt instrument, interest rate, stated percentage | 2.24% | |||||||
Repayment date of debt instrument | Apr. 10, 2018 | |||||||
Debt instrument, maturity date | Apr. 9, 2043 | |||||||
Repayments of long-term debt | $ 425,000,000 | |||||||
2013-2C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 575,000,000 | |||||||
Debt instrument, interest rate, stated percentage | 3.722% | |||||||
Repayment date of debt instrument | Apr. 11, 2023 | |||||||
Debt instrument, maturity date | Apr. 9, 2048 | Apr. 11, 2023 | ||||||
Debt instrument, principal balance | $ 575,000,000 | 575,000,000 | ||||||
2013-1D Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 330,000,000 | |||||||
Debt instrument, interest rate, stated percentage | 3.598% | |||||||
Repayment date of debt instrument | Apr. 10, 2018 | |||||||
Debt instrument, maturity date | Apr. 9, 2043 | |||||||
Repayments of long-term debt | 330,000,000 | |||||||
2014 Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,540,000,000 | |||||||
Financing fees | $ 22,500,000 | |||||||
Debt instrument, weighted average interest rate | 3.289% | |||||||
2014-1C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 920,000,000 | |||||||
Debt instrument, interest rate, stated percentage | 2.898% | |||||||
Repayment date of debt instrument | Oct. 8, 2019 | |||||||
Debt instrument, maturity date | Oct. 11, 2044 | Oct. 8, 2019 | ||||||
Debt instrument, principal balance | $ 920,000,000 | 920,000,000 | ||||||
2014-2C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 620,000,000 | |||||||
Debt instrument, interest rate, stated percentage | 3.869% | |||||||
Repayment date of debt instrument | Oct. 8, 2024 | |||||||
Debt instrument, maturity date | Oct. 8, 2049 | Oct. 8, 2024 | ||||||
Debt instrument, principal balance | $ 620,000,000 | 620,000,000 | ||||||
2015-1C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||
Debt instrument, interest rate, stated percentage | 3.156% | |||||||
Repayment date of debt instrument | Oct. 8, 2020 | |||||||
Debt instrument, maturity date | Oct. 10, 2045 | Oct. 8, 2020 | ||||||
Financing fees | $ 11,200,000 | |||||||
Debt instrument, principal balance | $ 500,000,000 | 500,000,000 | ||||||
2016-1C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 700,000,000 | |||||||
Debt instrument, interest rate, stated percentage | 2.877% | |||||||
Repayment date of debt instrument | Jul. 9, 2021 | |||||||
Debt instrument, maturity date | Jul. 10, 2046 | Jul. 9, 2021 | ||||||
Financing fees | $ 9,500,000 | |||||||
Debt instrument, principal balance | $ 700,000,000 | 700,000,000 | ||||||
2017-1C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 760,000,000 | |||||||
Debt instrument, interest rate, stated percentage | 3.168% | |||||||
Repayment date of debt instrument | Apr. 11, 2022 | |||||||
Debt instrument, maturity date | Apr. 9, 2047 | Apr. 11, 2022 | ||||||
Financing fees | $ 10,200,000 | |||||||
Debt instrument, principal balance | $ 760,000,000 | 760,000,000 | ||||||
2017-1R Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 40,000,000 | |||||||
Debt instrument, interest rate, stated percentage | 4.459% | |||||||
Repayment date of debt instrument | Apr. 11, 2022 | |||||||
Debt instrument, maturity date | Apr. 9, 2047 | |||||||
2018-1C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 640,000,000 | |||||||
Debt instrument, interest rate, stated percentage | 3.448% | |||||||
Repayment date of debt instrument | Mar. 9, 2023 | |||||||
Debt instrument, maturity date | Mar. 9, 2048 | Mar. 9, 2023 | ||||||
Financing fees | $ 8,500,000 | |||||||
Debt instrument, principal balance | $ 640,000,000 | $ 640,000,000 | ||||||
2018-1R Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 33,700,000 | |||||||
Debt instrument, interest rate, stated percentage | 4.949% | |||||||
Repayment date of debt instrument | Mar. 9, 2023 | |||||||
Debt instrument, maturity date | Mar. 9, 2048 | |||||||
Mortgage Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, increase | $ 673,700,000 | |||||||
Debt instrument, decrease after giving effect to prepayment of loan components | $ 81,300,000 |
Debt (Senior Notes) (Narrative)
Debt (Senior Notes) (Narrative) (Details) - USD ($) $ in Thousands | Oct. 13, 2017 | Aug. 15, 2016 | Jul. 01, 2014 | Mar. 31, 2019 | Mar. 31, 2018 |
Debt Instrument [Line Items] | |||||
Repayments of revolving credit facility | $ 215,000 | $ 70,000 | |||
5.75% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.75% | ||||
Repayments of unsecured debt | $ 800,000 | ||||
5.625% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.625% | ||||
Repayments of unsecured debt | $ 250,000 | ||||
2014 Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Unsecured senior notes | $ 750,000 | ||||
Debt instrument, maturity date | Jul. 15, 2022 | ||||
Debt instrument, interest rate, stated percentage | 4.875% | ||||
Percentage of face value price for issuance of senior notes | 99.178% | ||||
Interest payable dates | January 15 and July 15 | ||||
Financing fees | $ 11,600 | ||||
2014 Senior Notes [Member] | Redemption, Period Three [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage | 101.219% | ||||
2014 Senior Notes [Member] | Redemption, Period Four [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage | 100.00% | ||||
2016 Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Unsecured senior notes | $ 1,100,000 | ||||
Debt instrument, maturity date | Sep. 1, 2024 | ||||
Debt instrument, interest rate, stated percentage | 4.875% | ||||
Percentage of face value price for issuance of senior notes | 99.178% | ||||
Interest payable dates | March 1 and September 1 | ||||
Financing fees | $ 12,800 | ||||
Redemption price, percentage | 104.875% | ||||
2016 Senior Notes [Member] | Redemption, Period One [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage | 103.656% | ||||
2016 Senior Notes [Member] | Redemption, Period Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage | 102.438% | ||||
2016 Senior Notes [Member] | Redemption, Period Three [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage | 101.219% | ||||
2016 Senior Notes [Member] | Redemption, Period Four [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage | 100.00% | ||||
2017 Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Unsecured senior notes | $ 750,000 | ||||
Debt instrument, maturity date | Oct. 1, 2022 | ||||
Debt instrument, interest rate, stated percentage | 4.00% | ||||
Interest payable dates | April 1 and October 1 | ||||
Financing fees | $ 8,900 | ||||
Redemption price, percentage | 104.00% | ||||
2017 Senior Notes [Member] | Redemption, Period One [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage | 102.00% | ||||
2017 Senior Notes [Member] | Redemption, Period Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage | 101.00% | ||||
2017 Senior Notes [Member] | Redemption, Period Three [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage | 100.00% | ||||
Maximum [Member] | 2016 Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate redemption price, percentage | 35.00% | ||||
Maximum [Member] | 2017 Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate redemption price, percentage | 35.00% | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity date | Apr. 11, 2023 | ||||
Repayments of revolving credit facility | $ 460,000 | $ 215,000 |
Debt (Schedule of Principal Val
Debt (Schedule of Principal Values, Fair Values, and Carrying Values of Debt) (Details) - USD ($) $ in Thousands | Mar. 09, 2018 | Apr. 17, 2017 | Jul. 07, 2016 | Oct. 14, 2015 | Oct. 15, 2014 | Apr. 18, 2013 | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||||||
Principal Balance | $ 9,807,000 | $ 10,028,000 | ||||||
Fair Value | 9,781,083 | 9,736,246 | ||||||
Carrying Value | 9,723,048 | 9,938,553 | ||||||
Less: current maturities of long-term debt | (942,442) | (941,728) | ||||||
Total long-term debt, net of current maturities | $ 8,780,606 | 8,996,825 | ||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Apr. 11, 2023 | |||||||
Principal Balance | $ 110,000 | 325,000 | ||||||
Fair Value | 110,000 | 325,000 | ||||||
Carrying Value | $ 110,000 | 325,000 | ||||||
2014 Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Jul. 15, 2022 | |||||||
Principal Balance | $ 750,000 | 750,000 | ||||||
Fair Value | 761,250 | 735,000 | ||||||
Carrying Value | $ 741,839 | 741,273 | ||||||
2016 Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Sep. 1, 2024 | |||||||
Principal Balance | $ 1,100,000 | 1,100,000 | ||||||
Fair Value | 1,108,250 | 1,034,000 | ||||||
Carrying Value | $ 1,084,315 | 1,083,689 | ||||||
2017 Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Oct. 1, 2022 | |||||||
Principal Balance | $ 750,000 | 750,000 | ||||||
Fair Value | 751,875 | 712,500 | ||||||
Carrying Value | $ 743,525 | 743,099 | ||||||
2013-2C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Apr. 9, 2048 | Apr. 11, 2023 | ||||||
Principal Balance | $ 575,000 | 575,000 | ||||||
Fair Value | 572,591 | 569,164 | ||||||
Carrying Value | $ 569,999 | 569,715 | ||||||
2014-1C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Oct. 11, 2044 | Oct. 8, 2019 | ||||||
Principal Balance | $ 920,000 | 920,000 | ||||||
Fair Value | 916,348 | 914,241 | ||||||
Carrying Value | $ 918,442 | 917,728 | ||||||
2014-2C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Oct. 8, 2049 | Oct. 8, 2024 | ||||||
Principal Balance | $ 620,000 | 620,000 | ||||||
Fair Value | 630,112 | 609,665 | ||||||
Carrying Value | $ 614,534 | 614,315 | ||||||
2015-1C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Oct. 10, 2045 | Oct. 8, 2020 | ||||||
Principal Balance | $ 500,000 | 500,000 | ||||||
Fair Value | 498,850 | 496,640 | ||||||
Carrying Value | $ 496,317 | 495,737 | ||||||
2016-1C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Jul. 10, 2046 | Jul. 9, 2021 | ||||||
Principal Balance | $ 700,000 | 700,000 | ||||||
Fair Value | 693,714 | 691,432 | ||||||
Carrying Value | $ 695,474 | 694,994 | ||||||
2017-1C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Apr. 9, 2047 | Apr. 11, 2022 | ||||||
Principal Balance | $ 760,000 | 760,000 | ||||||
Fair Value | 752,856 | 744,496 | ||||||
Carrying Value | $ 753,529 | 753,028 | ||||||
2018-1C Tower Securities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Mar. 9, 2048 | Mar. 9, 2023 | ||||||
Principal Balance | $ 640,000 | 640,000 | ||||||
Fair Value | 644,922 | 641,478 | ||||||
Carrying Value | $ 633,118 | 632,725 | ||||||
2018 Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Apr. 11, 2025 | |||||||
Principal Balance | $ 2,382,000 | 2,388,000 | ||||||
Fair Value | 2,340,315 | 2,262,630 | ||||||
Carrying Value | $ 2,361,956 | $ 2,367,250 |
Debt (Schedule of Cash and Non-
Debt (Schedule of Cash and Non-Cash Interest Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | ||
Cash Interest | $ 98,667 | $ 88,923 |
Non-cash Interest | 641 | 733 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Cash Interest | 2,836 | 1,601 |
2014 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Cash Interest | 9,141 | 9,141 |
Non-cash Interest | 196 | 187 |
2016 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Cash Interest | 13,406 | 13,406 |
Non-cash Interest | 259 | 246 |
2017 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Cash Interest | 7,500 | 7,500 |
2013 Tower Securities [Member] | ||
Debt Instrument [Line Items] | ||
Cash Interest | 5,396 | 9,475 |
2014 Tower Securities [Member] | ||
Debt Instrument [Line Items] | ||
Cash Interest | 12,785 | 12,785 |
2015-1C Tower Securities [Member] | ||
Debt Instrument [Line Items] | ||
Cash Interest | 3,985 | 3,985 |
2016-1C Tower Securities [Member] | ||
Debt Instrument [Line Items] | ||
Cash Interest | 5,090 | 5,090 |
2017-1C Tower Securities [Member] | ||
Debt Instrument [Line Items] | ||
Cash Interest | 6,085 | 6,085 |
2018-1C Tower Securities [Member] | ||
Debt Instrument [Line Items] | ||
Cash Interest | 5,570 | 1,362 |
2014 Term Loan [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Cash Interest | 13,947 | |
Non-cash Interest | 131 | |
2015 Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Cash Interest | 4,697 | |
Non-cash Interest | 169 | |
2018 Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Cash Interest | 26,922 | |
Non-cash Interest | 186 | |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Cash Interest | $ (49) | $ (151) |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | May 08, 2019 | Feb. 16, 2018 | |
Class of Stock [Line Items] | |||
Stock repurchase program, authorized | $ 1,000 | ||
Class A Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Stock repurchased, shares | 0 | ||
Class A Common Stock [Member] | Subsequent Event [Member] | |||
Class of Stock [Line Items] | |||
Stock repurchase program, remaining authorization | $ 204.5 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Accelerated compensation cost | $ 11.2 | |
Weighted-average fair value of options granted | $ 33.84 | |
Total intrinsic value for options exercised | $ 54.1 | |
Scenario, Forecast [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Accelerated compensation cost | $ 7.3 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Assumptions used to Estimate Fair Value of Stock Options) (Details) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock-Based Compensation [Abstract] | ||
Risk free interest rate | 2.47% | 2.57% |
Dividend yield | 1.30% | 0.70% |
Expected volatility | 20.00% | 22.00% |
Expected lives | 4 years 7 months 6 days | 4 years 7 months 6 days |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Stock-Based Compensation [Abstract] | |
Number of Shares, Outstanding at December 31, 2018 | shares | 4,816 |
Number of Shares, Granted | shares | 1,035 |
Number of Shares, Exercised | shares | (663) |
Number of Shares, Forfeited/canceled | shares | (33) |
Number of Shares,Outstanding at March 31, 2019 | shares | 5,155 |
Number of Shares, Exercisable at March 31, 2019 | shares | 2,550 |
Number of Shares, Unvested at March 31, 2019 | shares | 2,605 |
Weighted-Average Exercise Price Per Share, Outstanding at December 31, 2018 | $ / shares | $ 114.48 |
Weighted-Average Exercise Price Per Share, Granted | $ / shares | 182.30 |
Weighted-Average Exercise Price Per Share, Exercised | $ / shares | 102.44 |
Weighted-Average Exercise Price Per Share, Forfeited/canceled | $ / shares | 127.79 |
Weighted-Average Exercise Price Per Share, Outstanding at March 31, 2019 | $ / shares | 129.57 |
Weighted-Average Exercise Price Per Share, Exercisable at March 31, 2019 | $ / shares | 108.03 |
Weighted-Average Exercise Price Per Share, Unvested at March 31, 2019 | $ / shares | $ 150.67 |
Weighted-Average Remaining Contractual Life (in years), Outstanding at March 31, 2019 | 4 years 7 months 6 days |
Weighted-Average Remaining Contractual Life (in years), Exercisable at March 31, 2019 | 3 years 4 months 24 days |
Weighted-Average Remaining Contractual Life (in years), Unvested at March 31, 2019 | 5 years 10 months 24 days |
Aggregate Intrinsic Value, Outstanding at March 31, 2019 | $ | $ 361,222 |
Aggregate Intrinsic Value, Exercisable at March 31, 2019 | $ | 233,659 |
Aggregate Intrinsic Value, Unvested at March 31, 2019 | $ | $ 127,563 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Restricted Stock Unit Activity) (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Stock-Based Compensation [Abstract] | |
Number of Shares, Outstanding at December 31, 2018 | shares | 324 |
Number of Shares, Granted | shares | 126 |
Number of Shares, Vested | shares | (123) |
Number of Shares, Forfeited/canceled | shares | (5) |
Number of Shares, Outstanding at March 31, 2019 | shares | 322 |
Weighted-Average Grant Date Fair Value per Share, Outstanding at December 31, 2018 | $ / shares | $ 128.69 |
Weighted-Average Grant Date Fair Value per Share, Granted | $ / shares | 182.30 |
Weighted-Average Grant Date Fair Value per Share, Vested | $ / shares | 125.37 |
Weighted-Average Grant Date Fair Value per Share, Forfeited/canceled | $ / shares | 135.24 |
Weighted-Average Grant Date Fair Value per Share, Outstanding at March 31, 2019 | $ / shares | $ 150.94 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Income Taxes [Abstract] | |
Net federal operating tax loss carry-forward | $ 755.4 |
Segment Data (Narrative) (Detai
Segment Data (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of business segments | segment | 2 | ||
Site leasing | $ 452,183 | $ 430,542 | |
Total assets | 9,312,759 | $ 7,213,707 | |
Brazil [Member] | |||
Segment Reporting Information [Line Items] | |||
Site leasing | 56,000 | $ 61,200 | |
Total assets | $ 1,005,600 | $ 1,031,600 |
Segment Data (Schedule of Segme
Segment Data (Schedule of Segment Reporting Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 493,293 | $ 458,302 | ||
Cost of revenues | 123,815 | 115,337 | ||
Operating profit | 369,478 | 342,965 | ||
Selling, general, and administrative | [1],[2] | 50,959 | 36,049 | |
Acquisition and new business initiatives related adjustments and expenses | 2,437 | 3,044 | ||
Asset impairment and decommission costs | 5,771 | 8,506 | ||
Depreciation, amortization and accretion | 171,038 | 165,398 | ||
Operating income | 139,273 | 129,968 | ||
Other expense (principally interest expense and other income (expense)) | (103,077) | (89,841) | ||
Income before income taxes | 36,196 | 40,127 | ||
Cash capital expenditures | 92,526 | 148,978 | ||
Assets | 9,312,759 | $ 7,213,707 | ||
Domestic Site Leasing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 362,838 | 341,707 | ||
Cost of revenues | 65,114 | 65,015 | ||
Operating profit | 297,724 | 276,692 | ||
Selling, general, and administrative | 28,893 | 19,339 | ||
Acquisition and new business initiatives related adjustments and expenses | 708 | 1,786 | ||
Asset impairment and decommission costs | 3,634 | 6,726 | ||
Depreciation, amortization and accretion | 130,244 | 123,458 | ||
Operating income | 134,245 | 125,383 | ||
Cash capital expenditures | 61,509 | 71,019 | ||
Assets | 6,507,029 | 5,035,826 | ||
International Site Leasing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 89,345 | 88,835 | ||
Cost of revenues | 27,600 | 27,802 | ||
Operating profit | 61,745 | 61,033 | ||
Selling, general, and administrative | 5,688 | 6,614 | ||
Acquisition and new business initiatives related adjustments and expenses | 1,729 | 1,258 | ||
Asset impairment and decommission costs | 2,137 | 1,502 | ||
Depreciation, amortization and accretion | 38,795 | 39,680 | ||
Operating income | 13,396 | 11,979 | ||
Cash capital expenditures | 29,517 | 77,056 | ||
Assets | 2,653,344 | 2,042,800 | ||
Site Development [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 41,110 | 27,760 | ||
Cost of revenues | 31,101 | 22,520 | ||
Operating profit | 10,009 | 5,240 | ||
Selling, general, and administrative | 5,706 | 4,077 | ||
Asset impairment and decommission costs | 278 | |||
Depreciation, amortization and accretion | 562 | 642 | ||
Operating income | 3,741 | 243 | ||
Cash capital expenditures | 925 | 267 | ||
Assets | 67,784 | 60,775 | ||
Not Identified by Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Selling, general, and administrative | 10,672 | 6,019 | ||
Depreciation, amortization and accretion | 1,437 | 1,618 | ||
Operating income | (12,109) | (7,637) | ||
Other expense (principally interest expense and other income (expense)) | (103,077) | (89,841) | ||
Cash capital expenditures | 575 | $ 636 | ||
Assets | $ 84,602 | $ 74,306 | ||
[1] | Includes non-cash compensation of $22,605 and $9,893 for the three months ended March 31, 2019 and 2018, respectively. | |||
[2] | Includes the impact of a partial recovery of $2.3 million of Oi prepetition obligations received during the three months ended March 31, 2019. |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded from earnings per share calculation | 0.4 | 0.3 |
Earnings Per Share (Weighted-Av
Earnings Per Share (Weighted-Average Shares of Common Stock Outstanding used in Calculation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 25,989 | $ 31,545 |
Basic weighted-average shares outstanding | 112,708 | 116,494 |
Dilutive impact of stock options and restricted shares | 1,636 | 1,799 |
Diluted weighted-average shares outstanding | 114,344 | 118,293 |
Net income per common share | ||
Basic | $ 0.23 | $ 0.27 |
Diluted | $ 0.23 | $ 0.27 |
Commitments and Contingencies_2
Commitments and Contingencies (Annual Minimum Lease Payments) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Finance Leases | |
2019 | $ 745 |
2020 | 706 |
2021 | 527 |
2022 | 311 |
2023 | 40 |
Thereafter | |
Total minimum lease payments | 2,329 |
Less: amount representing interest | (130) |
Present value of future payments | 2,199 |
Less: current obligations | (957) |
Long-term obligations | 1,242 |
Operating Leases | |
2019 | 177,031 |
2020 | 237,124 |
2021 | 238,369 |
2022 | 239,272 |
2023 | 238,827 |
Thereafter | 3,357,300 |
Total minimum lease payments | 4,487,923 |
Less: amount representing interest | (1,978,543) |
Present value of future payments | 2,509,380 |
Less: current obligations | (227,819) |
Long-term obligations | $ 2,281,561 |
Commitments and Contingencies_3
Commitments and Contingencies (Annual Minimum Lease Income) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Commitments and Contingencies [Abstract] | |
2019 | $ 1,191,719 |
2020 | 1,402,778 |
2021 | 1,155,058 |
2022 | 895,119 |
2023 | 680,367 |
Thereafter | 1,938,806 |
Total | $ 7,263,847 |