| Document and Entity Information | ||
| 3 Months Ended
Mar. 31, 2010 | Apr. 30, 2010
| |
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | 2010-03-31 | |
| Document Fiscal Year Focus | 2,010 | |
| Document Fiscal Period Focus | Q1 | |
| Entity Registrant Name | CROWN CASTLE INTERNATIONAL CORP | |
| Entity Central Index Key | 0001051470 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Well-known Seasoned Issuer | Yes | |
| Entity Voluntary Filers | No | |
| Entity Current Reporting Status | Yes | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 290,439,491 |
| CONDENSED CONSOLIDATED BALANCE SHEET (USD $) | ||
| In Thousands | 3 Months Ended
Mar. 31, 2010 | 12 Months Ended
Dec. 31, 2009 |
| ASSETS | ||
| Cash and cash equivalents | $397,496 | $766,146 |
| Restricted cash | 174,722 | 213,514 |
| Receivables net of allowance of $5,517 and $5,497, respectively | 41,265 | 44,431 |
| Prepaid expenses | 65,788 | 68,551 |
| Deferred income tax assets | 110,529 | 76,089 |
| Other current assets | 24,269 | 27,302 |
| Total current assets | 814,069 | 1,196,033 |
| Restricted cash | 5,000 | 5,000 |
| Property and equipment, net of accumulated depreciation of $3,141,869 and $3,040,572, respectively | 4,842,394 | 4,895,983 |
| Goodwill | 1,984,823 | 1,984,804 |
| Other intangible assets, net of accumulated amortization of $514,743 and $476,895, respectively | 2,385,930 | 2,405,422 |
| Other assets, net | 528,293 | 469,364 |
| Total assets | 10,560,509 | 10,956,606 |
| LIABILITIES AND EQUITY | ||
| Accounts payable | 24,771 | 33,053 |
| Accrued interest | 54,989 | 69,476 |
| Deferred revenues | 171,710 | 179,649 |
| Interest rate swaps | 279,102 | 160,121 |
| Other accrued liabilities | 77,251 | 94,610 |
| Short-term debt, current maturities of debt and other obligations | 19,553 | 217,196 |
| Total current liabilities | 627,376 | 754,105 |
| Debt and other long-term obligations | 6,368,763 | 6,361,954 |
| Deferred ground lease payables | 244,806 | 236,444 |
| Deferred income tax liabilities | 107,139 | 74,117 |
| Interest rate swaps | 73,165 | 140,481 |
| Other liabilities | 136,265 | 137,766 |
| Total liabilities | 7,557,514 | 7,704,867 |
| Commitments and contingencies (note 8) | ||
| Redeemable preferred stock, $0.1 par value; 20,000,000 shares authorized; shares issued and outstanding: March 31, 2010 and December 31, 2009 - 6,361,000; stated net of unamortized issue costs; mandatory redemption and aggregate liquidation value of $318,050 | 315,886 | 315,654 |
| CCIC stockholders' equity: | ||
| Common stock, $.01 par value; 600,000,000 shares authorized; shares issued and outstanding: March 31, 2010 - 291,230,613 and December 31, 2009 - 292,729,684 | 2,912 | 2,927 |
| Additional paid-in capital | 5,592,251 | 5,685,874 |
| Accumulated other comprehensive income (loss) | (155,112) | (124,224) |
| Accumulated deficit | (2,752,812) | (2,628,336) |
| Total CCIC stockholders' equity | 2,687,239 | 2,936,241 |
| Noncontrolling interest | (130) | (156) |
| Total equity | 2,687,109 | 2,936,085 |
| Total liablities and equity | $10,560,509 | $10,956,606 |
| CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | ||
| In Thousands, except Share data | Mar. 31, 2010
| Dec. 31, 2009
|
| Allowance for doubtful accounts receivable, current | $5,517 | $5,497 |
| Property, Plant and Equipment, Accumulated Depreciation | 3,141,869 | 3,040,572 |
| Intangible Assets, Accumulated Amortization | 514,743 | 476,895 |
| Par value. redeemable preferred stock | 0.1 | 0.1 |
| Shares authorized, redeemable preferred stock | 20,000,000 | 20,000,000 |
| Shares issued, redeemable preferred stock | 6,361,000 | 6,361,000 |
| Shares outstanding, redeemable preferred stock | 6,361,000 | 6,361,000 |
| Mandatory redemption and aggregate liquidation value, redeemable preferred stock | $318,050 | $318,050 |
| Par value, common stock | 0.01 | 0.01 |
| Shares authorized, common stock | 600,000,000 | 600,000,000 |
| Shares issued, common stock | 291,230,613 | 292,729,684 |
| Shares outstanding, common stock | 291,230,613 | 292,729,684 |
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | |||||||||||||||||||
| In Thousands, except Per Share data | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 | |||||||||||||||||
| Net revenues: | |||||||||||||||||||
| Site rental | $406,872 | $367,667 | |||||||||||||||||
| Network services and other | 37,455 | 35,243 | |||||||||||||||||
| Net revenues | 444,327 | 402,910 | |||||||||||||||||
| Costs of operations: | |||||||||||||||||||
| Site rental | 113,755 | [1] | 109,698 | [1] | |||||||||||||||
| Network services and other | 26,296 | [1] | 22,061 | [1] | |||||||||||||||
| General and administrative | 39,473 | 36,637 | |||||||||||||||||
| Asset write-down charges | 1,562 | 4,091 | |||||||||||||||||
| Depreciation, amortization and accretion | 132,868 | 133,176 | |||||||||||||||||
| Total operating expenses | 313,954 | 305,663 | |||||||||||||||||
| Operating income (loss) | 130,373 | 97,247 | |||||||||||||||||
| Interest expense and amortization of deferred financing costs | (120,781) | (105,587) | |||||||||||||||||
| Gains (losses) on purchases and redemptions of debt | (66,434) | 13,350 | |||||||||||||||||
| Net gain (loss) on interest rate swaps | (73,276) | 3,795 | |||||||||||||||||
| Interest and other income (expense) | 379 | (246) | |||||||||||||||||
| Income (loss) before income taxes | (129,739) | 8,559 | |||||||||||||||||
| Benefit (provision) for income taxes | 10,339 | 1,491 | |||||||||||||||||
| Net income (loss) | (119,400) | 10,050 | |||||||||||||||||
| Less: Net income (loss) attributable to the noncontrolling interest | (125) | (527) | |||||||||||||||||
| Net income (loss) attributable to CCIC stockholders | (119,275) | 10,577 | |||||||||||||||||
| Dividends on preferred stock | (5,201) | (5,201) | |||||||||||||||||
| Net income (loss) attributable to CCIC stockholders after deduction of dividends on preferred stock | (124,476) | 5,376 | |||||||||||||||||
| Net income (loss) | (119,400) | 10,050 | |||||||||||||||||
| Available-for-sale securities, net of taxes of $0 and $0, respectively: | |||||||||||||||||||
| Unrealized gains (losses) on available-for-sale securities, net of taxes | 1,239 | 922 | |||||||||||||||||
| Derivative instruments, net of taxes of $(12,349) and $(5,107), respectively: | |||||||||||||||||||
| Net change in fair value of cash flow hedging instruments, net of taxes | (48,933) | 48,234 | |||||||||||||||||
| Amounts reclassified into results of operations, net of taxes | 11,196 | 893 | |||||||||||||||||
| Foreign currency translation adjustments | 5,761 | (5,012) | |||||||||||||||||
| Comprehensive income (loss) | (150,137) | 55,087 | |||||||||||||||||
| Less: Comprehensive income (loss) attributable to the noncontrolling interest | 26 | (539) | |||||||||||||||||
| Comprehensive income (loss) attributable to CCIC stockholders | ($150,163) | $55,626 | |||||||||||||||||
| Net income (loss) attributable to CCIC common stockholders, after deduction of dividends on preferred stock, per common share: | |||||||||||||||||||
| Basic | -0.43 | 0.02 | |||||||||||||||||
| Diluted | -0.43 | 0.02 | |||||||||||||||||
| Weighted-average common shares outstanding (in thousands): | |||||||||||||||||||
| Basic | 288,451 | 285,913 | |||||||||||||||||
| Diluted | 288,451 | 287,608 | |||||||||||||||||
| [1]Exclusive of depreciation, amortization and accretion shown separately. | |||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | ||
| In Thousands | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
| Tax effect on available-for-sale securities | $0 | $0 |
| Tax effect on derivative instruments | ($12,349) | ($5,107) |
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | ||
| In Thousands | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
| Cash flows from operating activities: | ||
| Net income (loss) | ($119,400) | $10,050 |
| Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
| Depreciation, amortization and accretion | 132,868 | 133,176 |
| Gains (losses) on purchases and redemptions of long-term debt | 66,434 | (13,350) |
| Amortization of deferred financing costs and other non-cash interest | 18,871 | 10,404 |
| Stock-based compensation expense | 8,263 | 6,976 |
| Asset write-down charges | 1,562 | 4,091 |
| Deferred income tax benefit (provision) | (13,767) | (3,234) |
| Income (expense) from forward-starting interest rate swaps | 73,276 | (3,795) |
| Other adjustments | 839 | 821 |
| Changes in assets and liabilities, excluding the effects of acquistions: | ||
| Increase (decrease) in accrued interest | (14,487) | 14,575 |
| Increase (decrease) in accounts payable | (8,379) | (8,056) |
| Increase (decrease) in deferred revenues, deferred ground lease payables, other accrued liablilites and other liabilities | (24,263) | (29,331) |
| Decrease (increase) in receivables | 3,482 | 4,078 |
| Decrease (increase) in prepaid expenses, deferred site rental receivables, restricted cash and other assets | (41,042) | (8,347) |
| Net cash provided by (used for) operating activities | 84,257 | 118,058 |
| Cash flows from investing activities: | ||
| Proceeds from disposition of property and equipment | 1,742 | 2,431 |
| Capital expenditures | (36,863) | (39,284) |
| Payments for investments | (21,800) | 0 |
| Net cash provided by (used for) investing activities | (56,921) | (36,853) |
| Cash flows from financing activities: | ||
| Proceeds from issuance of long-term debt | 1,900,000 | 813,744 |
| Proceeds from issuance of capital stock | 6,825 | 4,074 |
| Principal payments on long-term debt and other long-term obligations | (4,231) | (1,625) |
| Purchases and redemptions of long-term debt | (2,149,653) | (226,707) |
| Purchases of capital stock | (108,726) | (1,052) |
| Payments under revolving credit agreements | 0 | (169,400) |
| Payments for financing costs | (31,358) | (28,550) |
| Payments for forward-starting interest rate swap settlements | (55,900) | 0 |
| Net (increase) decrease in restricted cash | 51,976 | (11,167) |
| Dividends on preferred stock | (4,969) | (4,969) |
| Net cash provided by (used for) financing activities | (396,036) | 374,348 |
| Effect of exchange rate changes on cash | 50 | (1,435) |
| Net increase (decrease) in cash and cash equivalents | (368,650) | 454,118 |
| Cash and cash equivalents at beginning of period | 766,146 | 155,219 |
| Cash and cash equivalents at end period | $397,496 | $609,337 |
| General | |
| 3 Months Ended
Mar. 31, 2010 | |
| General | 1. General The information contained in the following notes to the consolidated financial statements is condensed from that which would appear in the annual consolidated financial statements; accordingly, the consolidated financial statements included herein should be reviewed in conjunction with the consolidated financial statements for the fiscal year ended December 31, 2009, and related notes thereto, included in the 2009 Form 10-K filed by Crown Castle International Corp. ("CCIC") with the Securities and Exchange Commission ("SEC"). All references to the "Company" include CCIC and its subsidiary companies unless otherwise indicated or the context indicates otherwise. The Company owns, operates and leases towers and other communications structures (collectively, "towers"). The Company's primary business is the renting of antenna space to wireless communication companies under long-term contracts. To a lesser extent, the Company performs network services primarily consisting of antenna installations and subsequent augmentations, as well as site acquisition services, engineering services, permitting, other construction services, and other services related to network development. The Company conducts its operations in the U.S. and Canada (collectively referred to as "CCUSA") and Australia (referred to as "CCAL"). Basis of Presentation The consolidated financial statements included herein are unaudited; however, they include all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the consolidated financial position of the Company at March 31, 2010, and the consolidated results of operations and the consolidated cash flows for the three months ended March 31, 2010 and 2009. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the entire year. Certain reclassifications have been made to the financial statements for prior periods in order to conform to the presentation for the three months ended March 31, 2010. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Summary of Significant Accounting Policies The significant accounting policies used in the preparation of the Company's consolidated financial statements are disclosed in the Company's 2009 Form 10-K. New Accounting Pronouncements No accounting pronouncements adopted during the three months ended March 31, 2010 had a material impact on the Company's consolidated financial statements. No new accounting pronouncements issued during the three months ended March 31, 2010 but not yet adopted are expected to have a material imp |
| Debt and Other Obligations | |
| 3 Months Ended
Mar. 31, 2010 | |
| Debt and Other Obligations | 2. Debt and Other Obligations The Company's indebtedness consists of the following: OriginalIssue Date ContractualMaturityDate OutstandingBalance as ofMarch31,2010 OutstandingBalance asofDecember31,2009 StatedInterestRate as ofMarch31,2010(a) Bank debtvariable rate: Revolver Jan.2007 Sept. 2013 $ (b) $ N/A (c) 2007 Term Loans Jan./March2007 March2014 630,500 632,125 1.8 %(c) Total bank debt 630,500 632,125 Securitized debtfixed rate: 2005 Tower Revenue Notes June 2005 June 2035 1,638,616 2006 Tower Revenue Notes Nov. 2006 Nov.2036 (d) 1,325,993 1,550,000 5.7 %(d) 2010 Tower Revenue Notes Jan. 2010 20352040 (d) 1,900,000 5.8 %(d) 2009 Securitized Notes July 2009 2019/2029 (i) 242,394 250,000 7.0 % Total securitized debt 3,468,387 3,438,616 High yield bondsfixed rate: 9% Senior Notes Jan. 2009 Jan. 2015 796,247 823,809 9.0 %(e) 7.75% Secured Notes April 2009 May 2017 973,769 1,167,225 7.8 %(f) 7.125% Senior Notes Oct. 2009 Nov. 2019 497,576 497,533 7.1 %(g) 7.5% Senior Notes Dec. 2003 Dec. 2013 51 51 7.5 % Total high yield bonds 2,267,643 2,488,618 Other: Capital leases and other obligations Various Various (h) 21,786 19,791 Various (h) Total debt and other obligations 6,388,316 6,579,150 Less: current maturities and short-termdebt and other current obligations 19,553 (j) 217,196 (j) Non-current portion of long-term debtand other long-term obligations $ 6,368,763 $ 6,361,954 (a) Represents the weighted-average stated interest rate. (b) The availability is $400.0 million. (c) The Revolver currently bears interest at a rate per annum, at the election of CCOC, equal to the prime rate of The Royal Bank of Scotland plc plus a credit spread ranging from 1.0% to 1.4% or LIBOR plus a credit spread ranging from 2.0% to 2.4%, in each case based on the Company's consolidated leverage ratio. The 2007 Term Loans bear interest at a rate per annum, at CCOC's election, equal to the prime rate of The Royal Bank of Scotland plc plus 0.50% or LIBOR plus 1.50%. See note 3. (d) If the 2006 Tower Revenue Notes are not paid in full on or prior to November 2011 or the 2010 Tower Revenue Notes are not paid in full on or prior to 2015, 2017 and 2020, as applicable, then Excess Cash Flow (as defined in the indenture) of the Issuers (as defined in the indenture) will be used to repay principal of the Tower Revenue Notes, and additional inte |
| Interest Rate Swaps | |
| 3 Months Ended
Mar. 31, 2010 | |
| Interest Rate Swaps | 3. Interest Rate Swaps The Company only enters into interest rate swaps to manage and reduce its interest rate risk, including the use of (1) forward starting interest rate swaps to hedge its exposure to variability in future cash flows attributable to changes in LIBOR on anticipated financing, including refinancings and potential future borrowings and (2) interest rate swaps to hedge the interest rate variability on a portion of the Company's floating rate debt. The Company does not enter into interest rate swaps for speculative or trading purposes. The forward starting interest rate swaps call for the Company to pay interest at a fixed rate in exchange for receiving interest at a variable rate equal to LIBOR. The forward starting interest rate swaps are exclusive of any credit spread that would be incremental to the fixed rate in determining the all-in interest rate of the anticipated financing. The Company is exposed to non-performance risk from the counterparties to its interest rate swaps; however, the Company generally uses master netting arrangements to mitigate such non-performance risk. The Company does not require collateral as security for its interest rate swaps. The Company's interest rate swaps are with Morgan Stanley, the Royal Bank of Scotland plc and Credit Agricole each of which have credit ratings of "A2" or better from Moody's. The following is a summary of the outstanding interest rate swaps as of March 31, 2010: Hedged Item(a) CombinedNotional StartDate(b) EndDate PayFixedRate(c) ReceiveVariableRate Variable to fixedforward starting: Non-economic hedge(d) 1,400,523 June2010 June2015 5.2 % LIBOR Non-economic hedge(e) 1,550,000 Feb. 2011 Feb. 2016 5.3 % LIBOR 2006 Tower Revenue Notes anticipated refinancing 1,550,000 Nov.2011 Nov.2016 5.1 % LIBOR Variable to fixed: 2007 Term Loans(f) 600,000 Jan. 2010 Dec. 2011 1.3 % LIBOR Total $ 5,100,523 (a) Inclusive of interest rate swaps not designated as hedging instruments. (b) On the respective effective dates (start dates), the Company is contractually obligated to terminate and settle in cash the forward-starting interest rate swaps. (c) Exclusive of any applicable credit spreads. (d) This interest rate swap previously hedged the anticipated refinancing of the 2005 Tower Revenue Notes. See the discussion below regarding discontinuation of the hedge accounting. (e) This interest rate swap previously hedged the anticipated refinancing of the 2006 Mortgage Loan. See the discussion below regarding discontinuation of hedge accounting. (f) The Company has effectively fixed LIBOR for two years on $600.0 million of the 2007 Term Loans at a combined rate of approximately 1.3% (exclusive of the applicable credit spread). The Company refinanced the 2005 Tower Revenue Notes via the issuance of the 2010 Tower Revenue Notes in January 2010, which qualified as the hedged forecasted transaction and resulted i |
| Equity | |
| 3 Months Ended
Mar. 31, 2010 | |
| Equity | 4. Equity The following table provides a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to the CCIC stockholders and equity attributable to the noncontrolling interest. CCIC Stockholders CommonStock AdditionalPaid-InCapital AccumulatedOtherComprehensiveIncome (Loss) AccumulatedDeficit NoncontrollingInterest Total Balance, January1, 2010 $ 2,927 $ 5,685,874 $ (124,224 ) $ (2,628,336 ) $ (156 ) $ 2,936,085 Issuances of capital stock, net of forfeitures 13 6,812 6,825 Purchases and retirement of capital stock (28 ) (108,698 ) (108,726 ) Stock-based compensation 8,263 8,263 Other comprehensive income(a) (30,888 ) 151 (30,737 ) Dividends on preferred stock (5,201 ) (5,201 ) Net income (loss) (119,275 ) (125 ) (119,400 ) Balance, March31, 2010 $ 2,912 $ 5,592,251 $ (155,112 ) $ (2,752,812 ) $ (130 ) $ 2,687,109 CCIC Stockholders CommonStock AdditionalPaid-InCapital AccumulatedOtherComprehensiveIncome (Loss) AccumulatedDeficit NoncontrollingInterest Total Balance January1, 2009 $ 2,885 $ 5,614,507 $ (408,329 ) $ (2,493,198 ) $ $ 2,715,865 Issuances of capital stock, net of forfeitures 21 4,053 4,074 Purchases and retirement of capital stock (1 ) (1,051 ) (1,052 ) Stock-based compensation 6,976 6,976 Other comprehensive income(a) 45,049 (12 ) 45,037 Dividends on preferred stock (5,201 ) (5,201 ) Net income (loss) 10,577 (527 ) 10,050 Balance, March31, 2009 $ 2,905 $ 5,624,485 $ (363,280 ) $ (2,487,822 ) $ (539 ) $ 2,775,749 (a) See the statement of operations and other comprehensive income (loss) for the allocation of the components of "other comprehensive income (loss)." See note 10 for information regarding stock-based compensation. |
| Income Tax | |
| 3 Months Ended
Mar. 31, 2010 | |
| Income Tax | 5. Income Tax As a result of the Company's tax benefits recorded on losses during the first quarter of 2010, its net tax position as of March 31, 2010 prevents it from recognizing additional federal deferred tax benefits because any such benefits are expected to have a full valuation allowance. These benefits have a full valuation allowance because the Company's history of tax operating losses prevent it from determining that it is more likely than not that it will realize such benefits. For the three months ended March 31, 2010, the effective tax rate differed from the federal statutory rate predominately due to the Company's deferred tax valuation allowances. |
| Fair Value Disclosures | |
| 3 Months Ended
Mar. 31, 2010 | |
| Fair Value Disclosures | 6. Fair Value Disclosures The following is the estimated fair values of the Company's financial instruments, along with the carrying amounts of the related assets (liabilities). March31, 2010 December31, 2009 CarryingAmount FairValue CarryingAmount FairValue Assets: Cash and cash equivalents $ 397,496 $ 397,496 $ 766,146 $ 766,146 Restricted cash 179,722 179,722 218,514 218,514 Liabilities: Long-term debt and other obligations 6,388,316 6,807,717 6,579,150 6,870,979 Interest rate swaps(a) 352,267 352,267 300,602 300,602 (a) See note 3. The fair value of cash and cash equivalents and restricted cash approximate the carrying value. The estimated fair value of the Company's debt securities is based on indicative quotes (that is 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 or quotes from active markets if available. The fair value of interest rate swaps is determined using the income approach and is predominately based on observable interest rates and yield curves and, to a lesser extent, the Company's and the contract counterparty's credit risk. The credit risk (the Company's non-performance risk) assumption for interest rate swap fair values is primarily based on implied spreads from indicative quotes on the Company's outstanding debt and management's knowledge of current credit spreads in the debt market. There were no changes since December 31, 2009 in the Company's valuation techniques used to measure fair values. The following table presents information about the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2010 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Assets at Fair Value as of March31, 2010 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 397,496 $ 397,496 Restricted cash 179,722 179,722 $ 577,218 $ 577,218 Liabilities at Fair Value as of March 31, 2010 Level 1 Level2 Level 3 Total Interest rate swaps $ $ $ 352,267 (a) $ 352,267 (a) As of March31, 2010, the liability on a cash settlement basis of $364.2 million has been reduced by $12.0 million, related to credit risk to reflect the interest rate swaps at fair value. The following is a summary of the activity for liabilities classified as level 3 fair value measurements during the three months ended March 31, 2010: FairValueMeasurements UsingSignificantUnobservableInputs(Level3) Interest Rate Swaps, Net Three Months EndedMarch31, 2010 Beginning balance $ 300,040 Settlements (57,426 ) Less: Total gains (losses): Included in earnings(a) 72,704 Included in othe |
| Per Share Information | |
| 3 Months Ended
Mar. 31, 2010 | |
| Per Share Information | 7. Per Share Information Basic net income (loss) attributable to CCIC common stockholders, after deduction of dividends on preferred stock, per common share excludes dilution and is computed by dividing net income (loss) attributable to CCIC stockholders after deduction of dividends on preferred stock by the weighted-average number of common shares outstanding in the period. Diluted income (loss) attributable to CCIC common stockholders, after deduction of dividends on preferred stock, per common share is computed by dividing net income (loss) attributable to CCIC stockholders after deduction of dividends on preferred stock by the weighted-average number of common shares outstanding during the period plus any potential dilutive common share equivalents, including shares issuable (1) upon exercise of stock options and warrants and the vesting of restricted stock awards as determined under the treasury stock method and (2) upon conversion of the Company's convertible notes and preferred stock, as determined under the if-converted method. The Company's restricted stock awards are considered participating securities and may be included in the computation pursuant to the two-class method. However, the Company does not present the two-class method when there is no difference in the per share amount from the if-converted method. The following is a reconciliation of the numerators and denominators of the basic and diluted per share computations. See note 12. Three Months EndedMarch31, 2010 2009 Net income (loss) attributable to CCIC stockholders $ (119,275 ) $ 10,577 Dividends on preferred stock (5,201 ) (5,201 ) Net income (loss) attributable to CCIC common stockholders after deduction of dividends on preferred stock for basic and diluted computations $ (124,476 ) $ 5,376 Weighted average number of common shares outstanding (in thousands): Basic weighted-average number of commonshares outstanding 288,451 285,913 Effect of assumed dilution from potential common shares: Options to purchase shares of common stock 1,193 Shares of restricted stock awards 502 Diluted weighted-average number of common shares outstanding 288,451 287,608 Net income (loss) attributable to CCIC common stockholders per common share: Basic net income (loss) attributable to CCIC common stockholders per common share (0.43 ) 0.02 Diluted net income (loss) attributable to CCIC common stockholders per common share (0.43 ) 0.02 For the three months ended March 31, 2010, all CCIC stock options and unvested restricted stock awards are excluded from dilutive common shares because the net impact is anti-dilutive. For the three months ended March 31, 2009, 1.4 million options and 2.4 million restricted stock awards were excluded from the dilutive common shares because the net impact under the treasury stock method is anti-dilutive. 8.6 million shares related to the 6.25% convertible preferred stock are excluded from dilutive |
| Commitments and Contingencies | |
| 3 Months Ended
Mar. 31, 2010 | |
| Commitments and Contingencies | 8. Commitments and Contingencies The Company is involved in various claims, lawsuits and proceedings arising in the ordinary course of business. While there are uncertainties inherent in the ultimate outcome of such matters and it is impossible to presently determine the ultimate costs or losses that may be incurred, if any, management believes the resolution of such uncertainties and the incurrence of such costs should not have a material adverse effect on the Company's consolidated financial position or results of operations. |
| Operating Segments | |
| 3 Months Ended
Mar. 31, 2010 | |
| Operating Segments | 9. Operating Segments The Company's reportable operating segments for the three months ended March 31, 2010 are (1) CCUSA, primarily consisting of the Company's U.S. (including Puerto Rico) tower operations and (2) CCAL, the Company's Australian tower operations. Financial results for the Company are reported to management and the board of directors in this manner. The measurement of profit or loss currently used by management to evaluate the results of operations for the Company and its operating segments is earnings before interest, taxes, depreciation, amortization and accretion, as adjusted ("Adjusted EBITDA"). The Company defines Adjusted EBITDA as net income (loss) plus restructuring charges (credits), asset write-down charges, acquisition and integration costs, depreciation, amortization and accretion, interest expense and amortization of deferred financing costs, gains (losses) on purchases and redemptions of debt, net gain (loss) on interest rate swaps, impairment of available-for-sale securities, interest and other income (expense), benefit (provision) for income taxes, cumulative effect of change in accounting principle, income (loss) from discontinued operations and stock-based compensation expense. Adjusted EBITDA is not intended as an alternative measure of operating results or cash flow from operations (as determined in accordance with U.S. generally accepted accounting principles), and the Company's measure of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. There are no significant revenues resulting from transactions between the Company's operating segments. Inter-company borrowings and related interest between segments are eliminated to reconcile segment results and assets to the consolidated basis. The financial results for the Company's operating segments are as follows: Three Months Ended March31, 2010 Three Months Ended March31, 2009 CCUSA CCAL Eliminations ConsolidatedTotal CCUSA CCAL Eliminations ConsolidatedTotal Net revenues: Site rental $ 384,041 $ 22,831 $ $ 406,872 $ 350,695 $ 16,972 $ $ 367,667 Network services and other 34,847 2,608 37,455 33,451 1,792 35,243 418,888 25,439 444,327 384,146 18,764 402,910 Costs of operations:(a) Site rental 107,023 6,732 113,755 104,979 4,719 109,698 Network services and other 24,281 2,015 26,296 20,919 1,142 22,061 General and administrative 34,965 4,508 39,473 33,309 3,328 36,637 Asset write-down charges 1,562 1,562 4,046 45 4,091 Depreciation, amortization and accretion 125,692 |
| Stock-Based Compensation | |
| 3 Months Ended
Mar. 31, 2010 | |
| Stock-Based Compensation | 10. Stock-Based Compensation Restricted Stock Awards A summary of restricted stock award activity for the three months ended March 31, 2010 is as follows: NumberofShares (Inthousandsofshares) Shares outstanding at December31, 2009 4,154 Shares granted(a) 969 Shares vested (664 ) Shares forfeited (3 ) Shares outstanding at March31, 2010 4,456 (a) Weighted-average grant-date fair value of $30.18 per share and a weighted-average requisite service period of 2.5 years. The awards with market conditions included an expected volatility of 49% in the Monte Carlo simulation used to measure grant date fair value. During the three months ended March 31, 2010, the Company granted 0.5 million shares of restricted stock awards that time vest over a three-year period. During the three months ended March 31, 2010, the Company granted 0.5 million shares of restricted stock awards ("2010 Performance Awards") to the Company's executives and certain other employees which may vest on the third anniversary of the grant date subject to a market condition. The number of 2010 Performance Awards that may cliff vest on the third anniversary of the grant date is based upon achieving a price appreciation hurdle along a price range continuum using the highest average closing price per share of common stock for 20 consecutive trading days during the last 180 days of the performance period. To the extent that the requisite service period is rendered, compensation cost for accounting purposes is not reversed; rather, it is recognized regardless of whether or not the market performance target is achieved. The Company recognized stock-based compensation expense related to restricted stock awards of $6.9 million and $6.0 million for the three months ended March 31, 2010 and 2009, respectively. The unrecognized compensation expense (net of estimated forfeitures) related to restricted stock awards as of March 31, 2010 is $45.1 million. |
| Supplemental Cash Flow Information | |
| 3 Months Ended
Mar. 31, 2010 | |
| Supplemental Cash Flow Information | 11. Supplemental Cash Flow Information Supplemental disclosures of cash flow information and non-cash investing and financing activities are as follows: Three Months EndedMarch31, 2010 2009 Supplemental disclosure of cash flow information: Interest paid $ 116,397 $ 80,578 Income taxes paid 1,397 2,207 Supplemental disclosure of non-cashfinancing activities: Increase (decrease) in the fair value of forward-starting interest rate swaps (note 3) (31,612 ) (43,279 ) |
| Subsequent Events | |
| 3 Months Ended
Mar. 31, 2010 | |
| Subsequent Events | 12. Subsequent Events Common Stock During April 2010, the Company purchased 0.8 million shares of common stock in open market purchases utilizing $30.0 million in cash. Interest Rate Swaps During April 2010, the Company paid $67.0 million in cash to settle $610.5 million of notional value of the interest rate swaps that previously hedged the 2005 Tower Revenue Notes. |
