XML 30 R16.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Operating Segments
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Operating Segments Operating Segments
The Company's operating segments consist of (1) Towers and (2) Fiber. The Towers segment provides access, including space or capacity, to the Company's more than 40,000 towers geographically dispersed throughout the U.S. The Towers segment also reflects certain ancillary services relating to the Company's towers, predominately consisting of site development services and installation services. See note 12 for a discussion of the Company's restructuring Plan, which included discontinuing installation services as a Towers product offering. The Fiber segment provides access, including space or capacity, to the Company's approximately (1) 115,000 small cells on air or under contract and (2) 90,000 route miles of fiber primarily supporting small cells and fiber solutions geographically dispersed throughout the U.S.
The measurement of profit or loss used by the Company's chief operating decision maker ("CODM") to evaluate the performance of its operating segments is segment operating profit (loss). Additionally, the Company CODM also reviews segment site rental gross margin and segment services and other gross margin. The Company defines segment operating profit (loss) as segment site rental gross margin plus segment services and other gross margin, and segment other operating (income) expense, less segment selling, general and administrative expenses. The Company defines segment site rental gross margin as segment site rental revenues less segment site rental costs of operations, excluding stock-based compensation expense, net and amortization of prepaid lease purchase price adjustments recorded in consolidated site rental costs of operations. The Company defines segment services and other gross margin as segment services and other revenues less segment services and other costs of operations, excluding stock-based compensation expense, net recorded in consolidated services and other costs of operations. All of these measurements are exclusive of depreciation, amortization and accretion, which are shown separately.
The following tables set forth the Company's segment operating results for the three months ended March 31, 2024 and 2023. Costs that are directly attributable to Towers and Fiber are assigned to those respective segments. Additionally, certain
costs are shared across segments and are reflected in the Company's segment measures through allocations that management believes to be reasonable. The "Other" column (1) represents amounts excluded from specific segments, such as restructuring charges (credits), asset write-down charges, acquisition and integration costs, depreciation, amortization and accretion, amortization of prepaid lease purchase price adjustments, interest expense and amortization of deferred financing costs, net, gains (losses) on retirement of long-term obligations, interest income, other income (expense), stock-based compensation expense, net and certain selling, general and administrative expenses, and (2) reconciles segment operating profit (loss) to income (loss) before income taxes, as the amounts are not utilized in assessing each segment’s performance. The "Other" total assets balance includes corporate assets such as cash and cash equivalents and restricted cash and cash equivalents which have not been allocated to specific segments. There are no significant revenues resulting from transactions between the Company's operating segments.
Three Months Ended March 31, 2024
Three Months Ended March 31, 2023
TowersFiberOther

Total
TowersFiberOther

Total
Segment site rental revenues$1,068 $520 $1,588 $1,081 $543 $1,624 
Segment services and other revenues46 7 53 146 3 149 
Segment revenues1,114 527 1,641 1,227 546 1,773 
Segment site rental costs of operations239 182 421 234 172 406 
Segment services and other costs of operations28 4 32 99 2 101 
Segment costs of operations(a)(b)
267 186 453 333 174 507 
Segment site rental gross margin829 338 1,167 847 371 1,218 
Segment services and other gross margin18 3 21 47 1 48 
Segment selling, general and administrative expenses(b)
21 47 68 31 49 80 
Segment operating profit (loss)826 294 1,120 863 323 1,186 
Other selling, general and administrative expenses(b)
$84 84 $82 82 
Stock-based compensation expense, net38 38 41 41 
Depreciation, amortization and accretion439 439 431 431 
Restructuring charges
11 11 — — 
Interest expense and amortization of deferred financing costs, net226 226 202 202 
Other (income) expenses to reconcile to income (loss) before income taxes(c)
4 4 5 5 
Income (loss) before income taxes$318 $425 
Capital expenditures$35 $273 $12 $320 $50 $279 $12 $341 
Total assets (at period end)$21,270 $16,281 $680 $38,231 $22,185 $16,091 $778 $39,054 
(a)Exclusive of depreciation, amortization and accretion shown separately.
(b)Segment costs of operations excludes (1) stock-based compensation expense, net of $7 million and $8 million for the three months ended March 31, 2024 and 2023, respectively and (2) prepaid lease purchase price adjustments of $4 million for each of the three months ended March 31, 2024 and 2023. Segment selling, general and administrative expenses and other selling, general and administrative expenses exclude stock-based compensation expense, net of $31 million and $33 million for the three months ended March 31, 2024 and 2023, respectively.
(c)See condensed consolidated statement of operations and comprehensive income (loss) for further information.