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Operating Segments and Concentrations of Credit Risk
 12 Months Ended
Dec. 31, 2024
Operating Segments and Concentrations of Credit Risk [Abstract]  
Operating Segments and Concentrations of Credit Risks Operating Segments and Concentrations of Credit Risk
Reportable Segments
The Company's operating segments, which are also its reportable 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 16 to the Company's consolidated financial statements for a discussion of the Company's 2023 Restructuring Plan, which included discontinuing installation services as a Towers product offering and note 17 for a discussion of the sale of the Fiber segment which is expected to close in the first half of 2026. The Fiber segment provides access, including space or capacity, to the Company's approximately (1)
105,000 small cells either currently generating revenue 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 primarily used by the CODM to evaluate the performance of the Company's operating segments is segment operating profit (loss). The CODM uses segment operating profit (loss) to evaluate budget-to-actual variances to assist in deciding whether to (1) reinvest capital into the Company's operating segments by constructing new assets, acquire new assets or land interests (which primarily relate to land assets under towers), or make improvements and structural enhancements to our existing infrastructure, (2) return cash generated to stockholders in the form of dividends, (3) purchase shares of our common stock, or (4) repurchase, repay, or redeem the Company's debt. The CODM also uses segment operating profit (loss) in the evaluation of pricing of new projects and new tenant agreements. Additionally, the Company CODM reviews segment adjusted site rental gross margin and segment adjusted services and other gross margin. The CODM uses segment adjusted site rental gross margin and segment adjusted services and other gross margin to (1) evaluate the economic productivity of the Company's operating segments, (2) identify underlying business trends that are impacting the Company's segment performance, (3) assist in making resource allocation decisions and (4) aid in the preparation of the annual operating budget for the Company's operating segments.
The Company defines segment operating profit (loss) as segment site rental revenues plus segment services and other revenues, less segment site rental costs of operations, segment services and other costs of operations, and segment selling, general and administrative expenses, each of which excludes stock-based compensation, net, and prepaid lease purchase price adjustments, which are recorded in the respective consolidated figures. The Company defines segment adjusted 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 adjusted 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.
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 Non-Segment Items" column, which does not meet the criteria to be classified as a reportable segment, (1) represents amounts excluded from specific segments, such as restructuring charges (credits), asset write-down charges, goodwill impairment, 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 Non-Segment Items" 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. For both the Towers and Fiber segments, other segment costs of operations primarily consists of (1) utilities, (2) property taxes, (3) third-party costs related to ancillary services performed and (4) various other insignificant expenses. Other segment selling, general and administrative expenses primarily contains an allocation of corporate facilities expense relating to employees operating for each respective segment and external selling costs in the Fiber segment. There are no significant revenues resulting from transactions between the Company's operating segments.
2024 Segment Results and Significant Segment Expenses
Year Ended December 31, 2024
TowersFiber
Other Non-Segment Items
Total
Segment site rental revenues$4,266 $2,092 $6,358 
Segment services and other revenues192 18 210 
Segment revenues4,458 2,110 6,568 
Segment site rental costs of operations959 734 1,693 
Segment services and other costs of operations101 12 113 
Segment costs of operations(a)(b)
1,060 746 1,806 
Segment adjusted site rental gross margin
3,307 1,358 4,665 
Segment adjusted services and other gross margin
91 6 97 
Segment selling, general and administrative expenses(b)
76 176 252 
Segment operating profit (loss)3,322 1,188 4,510 
Other selling, general and administrative expenses(b)
$348 348 
Stock-based compensation expense, net131 131 
Depreciation, amortization and accretion
1,738 1,738 
Restructuring charges
109 109 
Interest expense and amortization of deferred financing costs, net932 932 
Goodwill impairment
4,958 4,958 
Other (income) expenses to reconcile to income (loss) before income taxes(c)
173 173 
Income (loss) before income taxes
$(3,879)
Capital expenditures$133 $1,045 $44 $1,222 
Total assets (at year end)$20,814 $11,283 $639 $32,736 
Total goodwill (at year end)$5,127 $— $— $5,127 
Year Ended December 31, 2024
TowersFiber
Other Non-Segment Items
Total
Segment costs of operations:
Lease expense
$745 $369 $— $1,114 
Employee compensation expense
90 95 — 185 
Repairs and maintenance expense
54 120 — 174 
Other segment costs of operations expense
171 162 — 333 
Total segment costs of operations(a)(b)
1,060 746 — 1,806 
Segment selling, general and administrative expenses:
Employee compensation expense63 102 160 325 
Other segment selling, general and administrative expenses13 74 188 275 
Total segment selling, general and administrative expenses(b)
$76 $176 $348 $600 
(a)Exclusive of depreciation, amortization and accretion shown separately.
(b)Segment costs of operations for the year ended December 31, 2024 excludes (1) stock-based compensation expense, net of $25 million and (2) prepaid lease purchase price adjustments of $16 million. For the year ended December 31, 2024, segment selling, general and administrative expenses and other selling, general and administrative expenses exclude stock-based compensation expense, net of $106 million.
(c)See consolidated statement of operations and comprehensive income (loss) for further information.
2023 Segment Results and Significant Segment Expenses
Year Ended December 31, 2023
TowersFiber
Other Non-Segment Items
Total
Segment site rental revenues$4,313 $2,219 $6,532 
Segment services and other revenues421 28 449 
Segment revenues4,734 2,247 6,981 
Segment site rental costs of operations943 686 1,629 
Segment services and other costs of operations294 12 306 
Segment costs of operations(a)(b)
1,237 698 1,935 
Segment adjusted site rental gross margin
3,370 1,533 4,903 
Segment adjusted services and other gross margin
127 16 143 
Segment selling, general and administrative expenses(b)
104 194 298 
Segment operating profit (loss)3,393 1,355 4,748 
Other selling, general and administrative expenses(b)
$333 333 
Stock-based compensation expense, net157 157 
Depreciation, amortization and accretion
1,754 1,754 
Restructuring charges
85 85 
Interest expense and amortization of deferred financing costs, net850 850 
Other (income) expenses to reconcile to income (loss) before income taxes(c)
41 41 
Income (loss) before income taxes
$1,528 
Capital expenditures$194 $1,175 $55 $1,424 
Total assets (at year end)$21,550 $16,308 $669 $38,527 
Total goodwill (at year end)$5,127 $4,958 $— $10,085 
Year Ended December 31, 2023
TowersFiber
Other Non-Segment Items
Total
Segment costs of operations:
Lease expense
$732 $347 $— $1,079 
Employee compensation expense
122 98 — 220 
Repairs and maintenance expense
58 107 — 165 
Other segment costs of operations expense
325 146 — 471 
Total segment costs of operations(a)(b)
1,237 698 — 1,935 
Segment selling, general and administrative expenses:
Employee compensation expense82 117 171 370 
Other segment selling, general and administrative expenses22 77 162 261 
Total segment selling, general and administrative expenses(b)
$104 $194 $333 $631 
(a)Exclusive of depreciation, amortization and accretion shown separately.
(b)Segment costs of operations for the year ended December 31, 2023 excludes (1) stock-based compensation expense, net of $29 million and (2) prepaid lease purchase price adjustments of $16 million. For the year ended December 31, 2023, segment selling, general and administrative expenses and other selling, general and administrative expenses exclude stock-based compensation expense, net of $128 million.
(c)See consolidated statement of operations and comprehensive income (loss) for further information.
2022 Segment Results and Significant Segment Expenses
Year Ended December 31, 2022
TowersFiber
Other Non-Segment Items
Total
Segment site rental revenues$4,322 $1,967 $6,289 
Segment services and other revenues685 12 697 
Segment revenues5,007 1,979 6,986 
Segment site rental costs of operations918 650 1,568 
Segment services and other costs of operations447 9 456 
Segment costs of operations(a)(b)
1,365 659 2,024 
Segment adjusted site rental gross margin
3,404 1,317 4,721 
Segment adjusted services and other gross margin
238 3 241 
Segment selling, general and administrative expenses(b)
115 190 305 
Segment operating profit (loss)3,527 1,130 4,657 
Other selling, general and administrative expenses(b)
$317 317 
Stock-based compensation expense, net156 156 
Depreciation, amortization and accretion
1,707 1,707 
Interest expense and amortization of deferred financing costs, net699 699 
Other (income) expenses to reconcile to income (loss) before income taxes(c)
87 87 
Income (loss) before income taxes
$1,691 
Capital expenditures$185 $1,058 $67 $1,310 
Total assets (at year end)$22,210 $16,010 $701 $38,921 
Total goodwill (at year end)$5,127 $4,958 $— $10,085 
Year Ended December 31, 2022
TowersFiber
Other Non-Segment Items
Total
Segment costs of operations:
Lease expense
$707 $321 $— $1,028 
Employee compensation expense
159 100 — 259 
Repairs and maintenance expense
56 97 — 153 
Other segment costs of operations expense
443 141 — 584 
Total segment costs of operations(a)(b)
1,365 659 — 2,024 
Segment selling, general and administrative expenses:
Employee compensation expense93 118 183 394 
Other segment selling, general and administrative expenses22 72 134 228 
Total segment selling, general and administrative expenses(b)
$115 $190 $317 $622 
(a)Exclusive of depreciation, amortization and accretion shown separately.
(b)Segment costs of operations for the year ended December 31, 2022 excludes (1) stock-based compensation expense, net of $28 million and (2) prepaid lease purchase price adjustments of $16 million. For the year ended December 31, 2022, segment selling, general and administrative expenses and other selling, general and administrative expenses exclude stock-based compensation expense, net of $128 million.
(c)See consolidated statement of operations and comprehensive income (loss) for further information.
Major Tenants
The following table summarizes the percentage of the consolidated revenues for those tenants accounting for more than 10% of the Company's consolidated revenues.
 Years Ended December 31,
 
2024
2023
2022
T-Mobile 35 %38 %38 %
AT&T 19 %19 %18 %
Verizon Wireless19 %19 %18 %
Total73 %76 %74 %
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents, restricted cash and cash equivalents and trade receivables. The Company mitigates its risk with respect to cash and cash equivalents by maintaining such deposits at high credit quality financial institutions and monitoring the credit ratings of those institutions. The Company's restricted cash and cash equivalents are predominately held and directed by a trustee (see note 2).
The Company derives the largest portion of its revenues from tenants in the wireless industry. The Company also has a concentration in its volume of business with T-Mobile, AT&T and Verizon Wireless or their agents that accounts for a significant portion of the Company's revenues, receivables and deferred site rental receivables. The Company mitigates its concentrations of credit risk with respect to trade receivables by actively monitoring the creditworthiness of its tenants, the use of tenant leases with contractually determinable payment terms or proactive management of past due balances.