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 American Tower Corporation Reports Fourth Quarter and Full Year 2016 Financial Results
   Monday, February 27, 2017 7:00:03 AM ET

--Fourth Quarter 2016

--Total revenue increased 20.3% to $1,540 million

--Property revenue increased 21.6% to $1,521 million

--Net income increased 5.1% to $233 million

--Adjusted EBITDA increased 16.7% to $936 million

--Consolidated AFFO increased 20.9% to $655 million

--Full Year 2016

--Total revenue increased 21.3% to $5,786 million

--Property revenue increased 22.1% to $5,713 million

--Net income increased 44.4% to $970 million

--Adjusted EBITDA increased 15.9% to $3,553 million

--Consolidated AFFO increased 15.8% to $2,490 million

American Tower Corporation (AMT ) today reported financial results for the quarter and full year ended December 31, 2016.



Jim Taiclet, American Tower’s Chief Executive Officer stated, "In 2016, we once again generated double digit growth in our property revenue, Adjusted EBITDA and Consolidated AFFO per Share. At the same time, we continued to expand our asset base through our active tower construction program and accretive acquisitions like the Viom transaction in India and ended the year with nearly 145,000 towers and small cell systems.

In all of these markets, consumers are driving increases in smartphone penetration and monthly data consumption, including in the U.S., where the average smartphone user now consumes over 4.4 gigabytes of data per month. We expect that these trends will in turn result in continued network investment and underpin our expectations for 2017, which include Organic Tenant Billings Growth of over 7% and Consolidated AFFO growth of over 10%. Further, we continue to target annual dividend per share growth of at least 20%, remain committed to our target net leverage range and expect to evaluate both accretive acquisition opportunities and a reinstatement of our share repurchase program during the course of the year."

CONSOLIDATED OPERATING RESULTS OVERVIEW

American Tower generated the following operating results for the quarter and year ended December 31, 2016 (unless otherwise indicated, all comparative information is presented against the quarter and year ended December 31, 2015), as applicable.

                                                                                                                                                                                                   
($ in millions, except per share amounts)                                                                                                 Q4 2016                                           Growth Rate                                           FY 2016                                               Growth Rate
                                                                                                                  -------------------- --------------------------------------------------                     ------------                     --------------------------------------------------                     ---------------------
Total revenue                                                                                                                          $   1,540                                            20.3 %                          $   5,786                                                 21.3 %
Total property revenue                                                                                                                 $                      1,521                                            21.6 %                          $                      5,713                                                 22.1 %
Total Tenant Billings Growth                                                                                                           $                        215                                            20.8 %                          $                        881                                                 22.4 %
Organic Tenant Billings Growth                                                                                                         $                         81                                             7.8 %                          $                        308                                                  7.8 %
Property Gross Margin                                                                                                                  $                      1,042                                            14.7 %                          $                      3,963                                                 16.0 %
Property Gross Margin %                                                                                                                                        68.5 %                                                                                                  69.4 %
Net income(1)                                                                                                                          $                        233                                             5.1 %                          $                        970                                                 44.4 %
Net income attributable to AMT common stockholders(1)                                                                                  $                        202                                            (1.7 )%                         $                        849                                                 42.8 %
Net income attributable to AMT common stockholders per diluted share(1)                                                                $                       0.47                                            (2.1 )%                         $                       1.98                                                 40.4 %
Adjusted EBITDA                                                                                                                        $                        936                                            16.7 %                          $                      3,553                                                 15.9 %
Adjusted EBITDA Margin %                                                                                                                                       60.8 %                                                                                                  61.4 %
                                                                                                                                                                                                                                                                                                                       
NAREIT Funds From Operations (FFO) attributable to AMT common                                                                          $                        557                                             5.2 %                          $                      2,188                                                 26.3 %
stockholders(1)
Consolidated AFFO                                                                                                                      $                        655                                            20.9 %                          $                      2,490                                                 15.8 %
Consolidated AFFO per Share                                                                                                            $                       1.52                                            19.7 %                          $                       5.80                                                 14.2 %
AFFO attributable to AMT common stockholders                                                                                           $                        631                                            17.0 %                          $                      2,400                                                 13.4 %
AFFO attributable to AMT common stockholders per Share                                                                                 $                       1.47                                            16.7 %                          $                       5.59                                                 11.8 %
                                                                                                                                                                                                                                                                                                                       
Cash provided by operating activities                                                                                                  $                        725                                            13.4 %                          $                      2,704                                                 23.8 %
Less: total cash capital expenditures(2)                                                                                               $     212                          0.8 %                          $     701                              (3.8 )%
                                                                                                                                       - -------------------- ----- --------------------                                                       - -------------------- ----- --------------------
Free Cash Flow                                                                                                                         $                        513                                            19.6 %                          $                      2,002                                                 37.7 %
                                                                                                                                                                                                                                                                                                                       
(1)     FY 2016 growth rate includes the impact of a one-time cash tax
                                              charge of approximately $93 million recorded in Q3 2015 as part of a
                                              tax election pursuant to which GTP REIT no longer operates as a
                                              separate REIT for federal and state income tax purposes.
(2)                                           Cash capital expenditures for Q4 2016 and FY 2016 include $5.1
                                              million and $18.9 million, respectively, of payments on capital
                                              leases of property and equipment, which are presented in the
                                              condensed consolidated statements of cash flows included herein
                                              under Repayments of notes payable, credit facilities, term loan,
                                              senior notes and capital leases.
                                               

Please refer to "Non-GAAP and Defined Financial Measures" below for definitions and other information regarding the Company’s use of non-GAAP measures. For financial information and reconciliations to GAAP measures, please refer to the "Unaudited Selected Consolidated Financial Information" and "Unaudited Reconciliations to GAAP Measures and the Calculation of Defined Financial Measures" below.

CAPITAL ALLOCATION OVERVIEW

Distributions - During the quarter and full year ended December 31, 2016, the Company declared the following regular cash distributions to its common stockholders:

                                                    
Common Stock Distributions                                                   Q4 2016(1)                         FY 2016
                                                                          -------------------- -------------                     -----------
Distribution per share                                                                           $ 0.58                           $ 2.17
Aggregate amount (in millions)                                                                   $  248                           $  924
Year-over-year per share growth                                                                      18 %                             20 %
_______________
(1)     The dividend declared was paid in the first quarter of 2017 to
                                              stockholders of record as of the close of business on December 28,
                                              2016.
                                               

In addition, the Company paid approximately $27 million in preferred stock dividends during the fourth quarter of 2016 and $107 million during the year ended December 31,2016.

Capital Expenditures - During the fourth quarter of 2016, total capital expenditures were $212 million, of which approximately $47 million was for non-discretionary capital improvements and corporate capital expenditures. For the full year, total capital expenditures were $701 million, of which approximately $127 million was for non-discretionary capital improvements and corporate capital expenditures. For additional capital expenditure details, please refer to the supplemental disclosure package available on the Company’s website.

Acquisitions and Other Transactions - During the fourth quarter of 2016, the Company spent approximately $106 million to acquire 108 sites, primarily in its existing international markets, and Comunicaciones y Consumos, S.A. (CyCSA) in Argentina, a new market for the Company. In December 2016, the Company finalized its entry into a joint venture ("ATC Europe") with PGGM. In addition, during the fourth quarter of 2016, ATC Europe entered into a definitive agreement to acquire FPS Towers ("FPS") in France, which is also a new market for the Company. The FPS acquisition closed on February 15, 2017. As a result, the Company now operates in 15 countries. For the full year, the Company spent $1.4 billion to acquire over 43,000 communications sites, primarily in the Company’s international markets.

LEVERAGE AND FINANCING OVERVIEW

Leverage - For the quarter ended December 31, 2016, the Company’s Net Leverage Ratio was approximately 4.7x net debt (total debt less cash and cash equivalents) to fourth quarter 2016 annualized Adjusted EBITDA.

                                                            
Calculation of Net Leverage Ratio
($ in millions)                                                                                         As of December 31, 2016
                                                                                                   ---------------------------------
Total debt                                                                                         $                         18,533
Less: Cash and cash equivalents                                                                                                 787
Net Debt                                                                                                  17,746
                                                                                                   -------------------- -----------
Divided By: Fourth quarter annualized Adjusted EBITDA(1)                                                   3,743
                                                                                                   -------------------- -----------
Net Leverage Ratio                                                                                                             4.7x
                                                                                                   =================================
_______________
(1)     Q4 2016 Adjusted EBITDA multiplied by four.
                                               

Liquidity - As of December 31, 2016, the Company had approximately $3.6 billion of total liquidity, consisting of approximately $0.8 billion in cash and cash equivalents plus the ability to borrow an aggregate of approximately $2.8 billion under its revolving credit facilities, net of any outstanding letters of credit.

Subsequent to the end of the fourth quarter of 2016, the Company borrowed an aggregate of $1.0 billion under its credit facilities. These borrowings were used to fund the Company’s FPS acquisition in France, the redemption of all outstanding 7.25% senior unsecured notes, the repayment of all amounts outstanding under certain securitized notes assumed in connection with prior acquisitions and for general corporate purposes.

FULL YEAR 2017 OUTLOOK

The following estimates are based on a number of assumptions that management believes to be reasonable and reflect the Company’s expectations as of February 27, 2017. Actual results may differ materially from these estimates as a result of various factors, and the Company refers you to the cautionary language regarding "forward-looking" statements included in this press release when considering this information.

The Company’s outlook includes the impact of its recently closed acquisition of FPS and is based on the following average foreign currency exchange rates to 1.00 U.S. Dollar for the remainder of 2017: (a) 16.70 Argentinean Pesos; (b) 3.35 Brazilian Reais; (c) 675 Chilean Pesos; (d) 3,060 Colombian Pesos; (e) 0.95 Euros; (f) 4.45 Ghanaian Cedi; (g) 68.60 Indian Rupees; (h) 21.50 Mexican Pesos; (i) 320.00 Nigerian Naira; (j) 3.40 Peruvian Soles; (k) 14.40 South African Rand; and (l) 3,650 Ugandan Shillings.

Additional information pertaining to the impact of foreign currency and London Interbank Offered Rate (LIBOR) fluctuations on the Company’s outlook has been provided in the supplemental disclosure package available on its website. The impact of foreign currency fluctuations on net income is not provided, as the impact on all components of the net income measure cannot be calculated without unreasonable effort.

                                                                                                 
2017 Outlook ($ in millions)                                                                   Full Year 2017                                               Midpoint
                                                                                                                                                             Growth
                                                                       --------------------------------------------------------                            --------
Total property revenue(1)                                               $ 6,210   to    $ 6,390                      10.3 %
Net income                                                                1,175                      to                         1,245                      24.7 %
Adjusted EBITDA                                                           3,810                      to                         3,910                       8.6 %
Consolidated AFFO                                                         2,700                      to                         2,800                      10.4 %
_______________
(1)     Includes U.S. property revenue of $3,445 to $3,505 and international
                                              property revenue of $2,765 to $2,885 reflecting midpoint growth
                                              rates of 3.1% and 20.6%, respectively. The U.S. growth rate reflects
                                              a negative impact of 1.2% from the non-recurrence of approximately
                                              $39 million in decommissioning revenue from 2016 and 1.8% associated
                                              with a decrease in non-cash straight-line revenue recognition.
                                              International property revenue reflects the Company’s Latin America,
                                              EMEA and Asia segments.
                                               
                                                                                             
                                                                                                                                                                           
2017 Outlook for Total Property revenue, at the midpoint,                                            U.S. Property                      International                         Total Property
includes the following components(1):                                                                                                    Property(2)
($ in millions, totals may not add due to rounding.)
                                                                                                    ------------                       ------------                       --------------------
International pass-through revenue                                                                       $    N/A                           $    890                               $        890
Straight-line revenue                                                                                          18                                 40                                         58
_______________
(1)     For additional discussion regarding these components, please refer
                                              to "Revenue Components" below.
(2)                                           International property revenue reflects the Company’s Latin America,
                                              EMEA and Asia segments.
                                               
                                                                                                          
2017 Outlook growth, at the midpoint, includes the following                                                  Total Property                          Adjusted                           Consolidated
components(1):                                                                                                    Revenue                              EBITDA                                AFFO
                                                                                                              --------------                      ---------------                      ---------------
Outlook midpoint growth                                                                                            10.3%                                8.6%                                 10.4%
Estimated impact of fluctuations in foreign currency exchange rates                                               (0.9)%                               (0.7)%                               (0.7)%
Estimated impact of straight-line revenue and expense recognition                                                 (1.6)%                               (2.2)%                           --%
Estimated impact of international pass-through revenue                                                             1.6%                            --%                      --%
_______________
(1)     Growth components for net income are not provided, as the impact of
                                              each of the line items on the measure cannot be calculated without
                                              unreasonable effort.
                                               
                                                                                                
2017 Outlook growth, at the midpoint, includes the following                                            U.S. Property                      International                       Total
components(1):                                                                                                                              Property(2)                      Property
(Totals
may not add due to rounding.)
                                                                                                       -------------                      -------------                      --------
Organic Tenant Billings                                                                                       6%                                10%                             7-8%
New Site Tenant Billings                                                                                     0.1%                               16%                             5-6%
                                                                                                       -------------                      -------------                      --------
Total Tenant Billings Growth                                                                                 >6%                               >25%                            >12%
_______________
(1)     For additional discussion regarding the component growth rates,
                                              please refer to "Revenue Components" below.
(2)                                           International property revenue reflects the Company’s Latin America,
                                              EMEA and Asia segments.
                                               
                                                                                       
Outlook for Capital Expenditures:
($ in millions)
(Totals may not add due to rounding.)                                                                                           Full Year 2017
                                                                                ---------------------------------------------------------------------------------------------------------------
Discretionary capital projects(1)                                               $   145                            to                            $   175
Ground lease purchases                                                                                 150                            to                                                   160
Start-up capital projects                                                                              165                            to                                                   185
Redevelopment                                                                                          185                            to                                                   215
Capital improvement                                                                                    140                            to                                                   150
Corporate                                                                                               15                      --                                              15
                                                                                ---------------------------                                                         ---------------------------
     Total                                                                      $   800                            to                            $   900
                                                                                - -------------------- ---                                                          - -------------------- ---
_______________
(1)     Includes the construction of approximately 2,500 to 3,500
                                              communications sites globally.
                                               
 
Reconciliation of Outlook for Adjusted EBITDA to Net income:
($ in millions)                                                     
(Totals may not add due to rounding.)                                                                                                                                    Full Year 2017
                                                                                                           ------------------------------------------------------------------------------------------------------------------------------------------
Net income                                                                                                     $   1,175         to             $                  1,245
Interest expense                                                                                                                        750                            to                                                                        770
Depreciation, amortization and accretion                                                                                              1,535                            to                                                                      1,565
Income tax provision                                                                                                                    143                            to                                                                        133
Stock-based compensation expense                                                                                                         91                      --                                                                   91
Other, including other operating expenses, interest income, gain
(loss) on retirement of long-term
                                                                                                                                        116                            to                                                                        106
  obligations and other income (expense)
                                                                                                           ------------------------------                                                            ---------------------------------------------
     Adjusted EBITDA                                                                                           $   3,810                            to                                $                  3,910
                                                                                                           ----- -------------------- -----                                                          ----- -------------------- --------------------
                                                                                                                                                                                                                                 
 
Reconciliation of Outlook for Consolidated AFFO to Net income:
($ in millions)                                                       
(Totals may not add due to rounding.)                                                                                                                                                  Full Year 2017
                                                                                                             -------------------------------------------------------------------------------------------------------------------------------------------------------------------
Net income                                                                                                      $   1,175                                    to      $   1,245
Straight-line revenue                                                                                                                    (58 )                                         --                                                  (58 )
Straight-line expense                                                                                                                     66                                           --                                                   66
Depreciation, amortization and accretion                                                                                               1,535                                                 to                                                      1,565
Stock-based compensation expense                                                                                                          91                                           --                                                   91
Deferred portion of income tax                                                                                                             7                                                 to                                                         23
Other, including other operating expenses, amortization of
deferred financing costs, capitalized
  interest, debt discounts and premiums, gain (loss) on retirement
  of long-term obligations, other
                                                                                                                                          39                                                 to                                                         33
  income (expense), long-term deferred interest charges and
  dividends on preferred stock
Capital improvement capital expenditures                                                                                                (140 )                                               to                                                       (150 )
Corporate capital expenditures                                                                                                           (15 )                                         --                                                  (15 )
                                                                                                             ----------------------------------------------------                                                          ----------------------------------------------------
     Consolidated AFFO                                                                                          $   2,700                              to                               $   2,800  
                                                                                                             ---- -------------------- ----- --------------------                                                          ---- -------------------- ----- --------------------
                                                                                                                                                                                                                                                            

Conference Call Information

American Tower will host a conference call today at 8:30 a.m. ET to discuss its financial results for the fourth quarter and full year ended December 31, 2016 and its outlook for 2017. Supplemental materials for the call will be available on the Company’s website, www.americantower.com. The conference call dial-in numbers are as follows:

U.S./Canada dial-in: (800) 260-0702 International dial-in: (612) 288-0318 Passcode: 416147

When available, a replay of the call can be accessed until 11:59 p.m. ET on March 13, 2017. The replay dial-in numbers are as follows:

U.S./Canada dial-in: (800) 475-6701 International dial-in: (320) 365-3844 Passcode: 416147

American Tower will also sponsor a live simulcast and replay of the call on its website, www.americantower.com.

About American Tower

American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 147,000 communications sites. For more information about American Tower, please visit the "Earnings Materials" and "Company & Industry Resources" sections of our investor relations website at www.americantower.com.

Non-GAAP and Defined Financial Measures

In addition to the results prepared in accordance with generally accepted accounting principles in the United States (GAAP) provided throughout this press release, the Company has presented the following non-GAAP and defined financial measures: Gross Margin, Operating Profit, Operating Profit Margin, Adjusted EBITDA, Adjusted EBITDA Margin, NAREIT Funds From Operations (FFO) attributable to American Tower Corporation common stockholders, Consolidated Adjusted Funds From Operations (AFFO), AFFO attributable to American Tower Corporation common stockholders, Consolidated AFFO per Share, AFFO attributable to American Tower Corporation common stockholders per Share, Free Cash Flow, Net Debt and Net Leverage Ratio. In addition, the Company presents: Tenant Billings, Tenant Billings Growth, Organic Tenant Billings Growth and New Site Tenant Billings Growth.

These measures are not intended to replace financial performance measures determined in accordance with GAAP. Rather, they are presented as additional information because management believes they are useful indicators of the current financial performance of the Company’s core businesses and are commonly used across its industry peer group. As outlined in detail below, the Company believes that these measures can assist in comparing company performance on a consistent basis irrespective of depreciation and amortization or capital structure, while also providing valuable incremental insight into the underlying operating trends of its business.

Depreciation and amortization can vary significantly among companies depending on accounting methods, particularly where acquisitions or non-operating factors, including historical cost basis, are involved. Notwithstanding the foregoing, the Company’s Non-GAAP and Defined Financial measures may not be comparable to similarly titled measures used by other companies.

Revenue Components

In addition to reporting total revenue, the Company believes that providing transparency around the components of its revenue provides investors with insight into the indicators of the underlying demand for, and operating performance of, its real estate portfolio. Accordingly, the Company has provided disclosure of the following revenue components: (i) Tenant Billings, (ii) New Site Tenant Billings; (iii) Organic Tenant Billings; (iv) International pass-through revenue; (v) Straight-line revenue; (vi) Pre-paid amortization revenue; and (vii) Other revenue.

Tenant Billings: The majority of the Company’s revenue is generated from non-cancellable, long-term tenant leases. Revenue from Tenant Billings reflects several key aspects of the Company’s real estate business: (i) "colocations/amendments" reflects new tenant leases for space on existing towers and amendments to existing leases to add additional tenant equipment; (ii) "escalations" reflects contractual increases in billing rates, which are typically tied to fixed percentages or a variable percentage based on a consumer price index; (iii) "cancellations" reflects the impact of tenant lease terminations or non-renewals or, in limited circumstances, when the lease rates on existing leases are reduced; and (iv) "new sites" reflects the impact of new property construction and acquisitions.

New Site Tenant Billings: Day-one Tenant Billings associated with sites that have been built or acquired since the beginning of the prior-year period. Incremental colocations/amendments, escalations or cancellations that occur on these sites after the date of their initial addition to our portfolio are not included in New Site Tenant Billings. The Company believes providing New Site Tenant Billings enhances an investor’s ability to analyze our existing real estate portfolio growth as well as our development program growth, as the Company’s construction and acquisition activities can drive variability in growth rates from period to period.

Organic Tenant Billings: Tenant Billings on sites that the Company has owned since the beginning of the prior-year period, as well as Tenant Billings activity on new sites that occurred after the date of their initial addition to the Company’s portfolio.

International pass-through revenue: A portion of the Company’s pass-through revenue is based on power and fuel expense reimbursements and therefore subject to fluctuations in fuel prices. As a result, revenue growth rates may fluctuate depending on the market price for fuel in any given period, which is not representative of the Company’s real estate business and its economic exposure to power and fuel costs. Furthermore, this expense reimbursement mitigates the economic impact associated with fluctuations in operating expenses, such as power and fuel costs and land rents in certain of the Company’s markets. As a result, the Company believes that it is appropriate to provide insight into the impact of pass-through revenue on certain revenue growth rates.

Straight-line revenue: Under GAAP, the Company recognizes revenue on a straight-line basis over the term of the contract for certain of its tenant leases. Due to the Company’s significant base of non-cancellable, long-term tenant leases, this can result in significant fluctuations in growth rates upon tenant lease signings and renewals (typically increases), when amounts billed or received upfront upon these events are initially deferred. These signings and renewals are only a portion of the Company’s underlying business growth and can distort the underlying performance of our Tenant Billings Growth. As a result, the Company believes that it is appropriate to provide insight into the impact of straight-line revenue on certain growth rates in revenue and select other measures.

Pre-paid amortization revenue: The Company recovers a portion of the costs it incurs for the redevelopment and development of its properties from its tenants. These upfront payments are then amortized over the initial term of the corresponding tenant lease. Given this amortization is not necessarily directly representative of underlying leasing activity on our real estate portfolio, (i.e.: does not have a renewal option or escalation as our tenant leases do) the Company believes that it is appropriate to provide insight into the impact of pre-paid amortization revenue on certain revenue growth rates to provide transparency into the underlying performance of our real estate business.

Foreign currency exchange impact: The majority of the Company’s international revenue and operating expenses are denominated in each respective country’s local currency. As a result, foreign currency fluctuations may distort the underlying performance of our real estate business from period to period, depending on the movement of foreign currency exchange rates versus the U.S. Dollar. The Company believes it is appropriate to quantify the impact of foreign currency exchange fluctuations to its reported growth to provide transparency into the underlying performance of its real estate business.

Other revenue: Typically an immaterial portion of the Company’s total revenue, Other revenue represents revenue not captured by the above listed terms and can include items such as tenant settlements.

Non-GAAP and Defined Financial Measure Definitions

Tenant Billings Growth: The increase or decrease resulting from a comparison of Tenant Billings for a current period with Tenant Billings for the corresponding prior-year period, in each case adjusted for foreign currency exchange fluctuations. The Company believes this measure provides valuable insight into the growth in recurring Tenant Billings and underlying demand for its real estate portfolio.

Organic Tenant Billings Growth: The portion of Tenant Billings Growth attributable to Organic Tenant Billings. The Company believes that organic growth is a useful measure of its ability to add tenancy and incremental revenue to its assets for the reported period, which enables investors and analysts to gain additional insight into the relative attractiveness, and therefore the value, of the Company’s property assets.

New Site Tenant Billings Growth: The portion of Tenant Billings Growth attributable to New Site Tenant Billings. The Company believes this measure provides valuable insight into the growth attributable to Tenant Billings from recently acquired or constructed properties.

Gross Margin: Revenues less operating expenses, excluding stock-based compensation expense recorded in costs of operations, depreciation, amortization and accretion, selling, general, administrative and development expense and other operating expenses. The Company believes this measure provides valuable insight into the site-level profitability of its assets.

Operating Profit: Gross Margin less selling, general, administrative and development expense, excluding stock-based compensation expense and corporate expenses. The Company believes this measure provides valuable insight into the site-level profitability of its assets while also taking into account the overhead expenses required to manage each of its operating segments.

For segment reporting purposes, the Latin America property segment Operating Profit and Gross Margin also include interest income, TV Azteca, net. Operating Profit and Gross Margin are before interest income, interest expense, gain (loss) on retirement of long-term obligations, other income (expense), net income (loss) attributable to noncontrolling interest and income tax benefit (provision).

Operating Profit Margin: The percentage that results from dividing Operating Profit by revenue.

Adjusted EBITDA: Net income before income (loss) from equity method investments, income tax benefit (provision), other income (expense), gain (loss) on retirement of long-term obligations, interest expense, interest income, other operating income (expense), depreciation, amortization and accretion and stock-based compensation expense. The Company believes this measure provides valuable insight into the profitability of its operations while at the same time taking into account the central overhead expenses required to manage its global operations. In addition, it is a widely used performance measure across our telecommunications real estate sector.

Adjusted EBITDA Margin: The percentage that results from dividing Adjusted EBITDA by total revenue.

NAREIT Funds From Operations (FFO), as defined by the National Association of Real Estate Investment Trusts (NAREIT), attributable to American Tower Corporation common stockholders: Net income before gains or losses from the sale or disposal of real estate, real estate related impairment charges, real estate related depreciation, amortization and accretion and dividends on preferred stock, and including adjustments for (i) unconsolidated affiliates and (ii) noncontrolling interests. The Company believes this measure provides valuable insight into the operating performance of its property assets by excluding the charges described above, particularly depreciation expenses, given the high initial, up-front capital intensity of the Company’s operating model. In addition, it is a widely used performance measure across our telecommunications real estate sector.

Consolidated Adjusted Funds From Operations (AFFO): NAREIT FFO attributable to American Tower Corporation common stockholders before (i) straight-line revenue and expense, (ii) stock-based compensation expense, (iii) the deferred portion of income tax, (iv) non-real estate related depreciation, amortization and accretion, (v) amortization of deferred financing costs, capitalized interest, debt discounts and premiums and long-term deferred interest charges, (vi) other income (expense), (vii) gain (loss) on retirement of long-term obligations, (viii) other operating income (expense), and adjustments for (ix) unconsolidated affiliates and (x) noncontrolling interests, less cash payments related to capital improvements and cash payments related to corporate capital expenditures. The Company believes this measure provides valuable insight into the operating performance of its property assets by further adjusting the NAREIT FFO attributable to American Tower Corporation common stockholders metric to exclude the factors outlined above, which if unadjusted, may cause material fluctuations in NAREIT FFO attributable to American Tower Corporation common stockholders growth from period to period that would not be representative of the underlying performance of our property assets in those periods. In addition, it is a widely used performance measure across our telecommunications real estate sector.

Adjusted Funds From Operations (AFFO) attributable to American Tower Corporation common stockholders: Consolidated AFFO, excluding the impact of noncontrolling interests on both NAREIT FFO attributable to American Tower Corporation common stockholders as well as the other line items included in the calculation of Consolidated AFFO. The Company believes that providing this additional metric enhances transparency, given a significantly larger minority interest component of its business as a result of the Company’s Viom transaction and European joint venture with PGGM, which both closed in 2016.

Consolidated AFFO per Share: Consolidated AFFO divided by the diluted weighted average common shares outstanding.

AFFO attributable to American Tower Corporation common stockholders per Share: AFFO attributable to American Tower Corporation common stockholders divided by the diluted weighted average common shares outstanding.

Free Cash Flow: Cash provided by operating activities less total cash capital expenditures, including payments on capital leases of property and equipment. The Company believes that Free Cash Flow is useful to investors as the basis for comparing our performance and coverage ratios with other companies in its industry.

Net Debt: Total long-term debt less cash and cash equivalents.

Net Leverage Ratio: Net Debt divided by the quarter’s annualized Adjusted EBITDA (the quarter’s Adjusted EBITDA multiplied by four). The Company believes that including this calculation is important for investors and analysts given it is a critical component underlying its credit agency ratings.

Cautionary Language Regarding Forward-Looking Statements

This press release contains "forward-looking statements" concerning our goals, beliefs, expectations, strategies, objectives, plans, future operating results and underlying assumptions, and other statements that are not necessarily based on historical facts. Examples of these statements include, but are not limited to, statements regarding our full year 2017 outlook and other targets, foreign currency exchange rates, our expectation regarding the leasing demand for communications real estate and potential reinstatement of our share repurchase program. Actual results may differ materially from those indicated in our forward-looking statements as a result of various important factors, including: (1) decrease in demand for our communications infrastructure would materially and adversely affect our operating results, and we cannot control that demand; (2) increasing competition for tenants in the tower industry may materially and adversely affect our revenue; (3) if our tenants share site infrastructure to a significant degree or consolidate or merge, our growth, revenue and ability to generate positive cash flows could be materially and adversely affected; (4) our business is subject to government and tax regulations and changes in current or future laws or regulations could restrict our ability to operate our business as we currently do; (5) our foreign operations are subject to economic, political and other risks that could materially and adversely affect our revenues or financial position, including risks associated with fluctuations in foreign currency exchange rates; (6) our expansion initiatives involve a number of risks and uncertainties, including those related to integrating acquired or leased assets, that could adversely affect our operating results, disrupt our operations or expose us to additional risk; (7) competition for assets could adversely affect our ability to achieve our return on investment criteria; (8) new technologies or changes in a tenant’s business model could make our tower leasing business less desirable and result in decreasing revenues; (9) our leverage and debt service obligations may materially and adversely affect our ability to raise additional financing to fund capital expenditures, future growth and expansion initiatives and to satisfy our distribution requirements; (10) a substantial portion of our revenue is derived from a small number of tenants, and we are sensitive to changes in the creditworthiness and financial strength of our tenants; (11) if we fail to remain qualified for taxation as a REIT, we will be subject to tax at corporate income tax rates, which may substantially reduce funds otherwise available, and even if we qualify for taxation as a REIT, we may face tax liabilities that impact earnings and available cash flow; (12) complying with REIT requirements may limit our flexibility or cause us to forego otherwise attractive opportunities; (13) restrictive covenants in the agreements related to our securitization transactions, our credit facilities and our debt securities and the terms of our preferred stock could materially and adversely affect our business by limiting flexibility, and we may be prohibited from paying dividends on our common stock, which may jeopardize our qualification for taxation as a REIT; (14) if we are unable to protect our rights to the land under our towers, it could adversely affect our business and operating results; (15) if we are unable or choose not to exercise our rights to purchase towers that are subject to lease and sublease agreements at the end of the applicable period, our cash flows derived from such towers will be eliminated; (16) our costs could increase and our revenues could decrease due to perceived health risks from radio emissions, especially if these perceived risks are substantiated; (17) we could have liability under environmental and occupational safety and health laws; and (18) our towers, data centers or computer systems may be affected by natural disasters and other unforeseen events for which our insurance may not provide adequate coverage. For additional information regarding factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the information contained in Item 1A of our Form 10-K for the year ended December 31, 2015, under the caption "Risk Factors". We undertake no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.

                                                                                         
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
                                                                                                                                                    
                                                                                                   December 31, 2016                                           December 31, 2015
                                                                                        --------------------------------------                     ----------------------------------------
ASSETS
CURRENT ASSETS:
   Cash and cash equivalents                                                                $    787,161                                                 $    320,686
   Restricted cash                                                                               149,281                                                      142,193
   Short-term investments                                                                          4,026                                               --
   Accounts receivable, net                                                                      308,369                                                      227,354
   Prepaid and other current assets                                                              441,033                                   306,235  
                                                                                        -------------------------------------                      ---------------------------------------
      Total current assets                                                                     1,689,870                                   996,468  
                                                                                        -------------------------------------                      ---------------------------------------
PROPERTY AND EQUIPMENT, net                                                                   10,517,258                                                    9,866,424
GOODWILL                                                                                       5,070,680                                                    4,091,805
OTHER INTANGIBLE ASSETS, net                                                                  11,274,611                                                    9,837,876
DEFERRED TAX ASSET                                                                               195,678                                                      212,041
DEFERRED RENT ASSET                                                                            1,289,530                                                    1,166,755
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS                                                    841,523                                   732,903  
                                                                                        -------------------------------------                      ---------------------------------------
TOTAL                                                                                       $ 30,879,150                              $ 26,904,272  
                                                                                        ===== ========== ====================                      ======= ========== ====================
LIABILITIES
CURRENT LIABILITIES:
   Accounts payable                                                                         $    118,666                                                 $     96,714
   Accrued expenses                                                                              620,563                                                      516,413
   Distributions payable                                                                         250,550                                                      210,027
   Accrued interest                                                                              157,297                                                      115,672
   Current portion of long-term obligations                                                      238,806                                                       50,202
   Unearned revenue                                                                              245,387                                   211,001  
                                                                                        -------------------------------------                      ---------------------------------------
      Total current liabilities                                                                1,631,269                                 1,200,029  
                                                                                        -------------------------------------                      ---------------------------------------
LONG-TERM OBLIGATIONS                                                                         18,294,659                                                   17,068,807
ASSET RETIREMENT OBLIGATIONS                                                                     965,507                                                      856,936
DEFERRED TAX LIABILITY                                                                           777,572                                                      106,333
OTHER NON-CURRENT LIABILITIES                                                                  1,142,723                                   959,349  
                                                                                        -------------------------------------                      ---------------------------------------
      Total liabilities                                                                       22,811,730                                20,191,454  
                                                                                        -------------------------------------                      ---------------------------------------
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NONCONTROLLING INTERESTS                                                            1,091,220                                               --
EQUITY:
   Preferred stock, Series A                                                                          60                                                           60
   Preferred stock, Series B                                                                          14                                                           14
   Common stock                                                                                    4,299                                                        4,267
   Additional paid-in capital                                                                 10,043,559                                                    9,690,609
   Distributions in excess of earnings                                                        (1,076,965 )                                                   (998,535 )
   Accumulated other comprehensive loss                                                       (1,999,332 )                                                 (1,836,996 )
   Treasury stock                                                                               (207,740 )                                                   (207,740 )
                                                                                        -------------------------------------                      ---------------------------------------
      Total American Tower Corporation equity                                                  6,763,895                                                    6,651,679
   Noncontrolling interests                                                                      212,305                                    61,139  
                                                                                        -------------------------------------                      ---------------------------------------
      Total equity                                                                             6,976,200                                 6,712,818  
                                                                                        -------------------------------------                      ---------------------------------------
TOTAL                                                                                       $ 30,879,150                              $ 26,904,272  
                                                                                        ===== ========== ====================                      ======= ========== ====================
                                                                                                                                                                       
                                                                                                                                                                            
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In
thousands, except per share data)
                                                                                                                                                                                                                                       
                                                                                                                                                         Three Months Ended                                                                                                Twelve Months Ended
                                                                                                                                                            December 31,                                                                                                      December 31,
                                                                                                                    --------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------
                                                                                                                                    2016                                  2015                                                     2016                                  2015
                                                                                                                    ------------------------------------                     ------------------------------------                     ------------------------------------                     ------------------------------------
REVENUES:
   Property                                                                                                            $ 1,521,347                                              $ 1,251,124                                              $ 5,713,126                                              $ 4,680,388
   Services                                                                                                                 18,202                                28,917                                72,542                                91,128  
                                                                                                                    -----------------------------------                      -----------------------------------                      -----------------------------------                      -----------------------------------
       Total operating revenues                                                                                          1,539,549                             1,280,041                             5,785,668                             4,771,516  
                                                                                                                    -----------------------------------                      -----------------------------------                      -----------------------------------                      -----------------------------------
OPERATING EXPENSES:
   Costs of operations (exclusive of items shown separately below):
      Property (including stock-based compensation expense of $425, $396,
                                                                                                                           482,308                                                  345,812                                                1,762,694                                                1,275,436
        $1,750 and $1,614, respectively)
      Services (including stock-based compensation expense of $110, $103,
                                                                                                                             5,688                                                   10,569                                                   27,695                                                   33,432
        $688 and $439, respectively)
   Depreciation, amortization and accretion                                                                                388,237                                                  352,356                                                1,525,635                                                1,285,328
   Selling, general, administrative and development expense
   (including stock-based
                                                                                                                           138,309                                                  143,375                                                  543,395                                                  497,835
     compensation expense of $19,151, $17,787, $87,460 and $88,484,
     respectively)
   Other operating expenses                                                                                                 35,711                                25,805                                73,220                                66,696  
                                                                                                                    -----------------------------------                      -----------------------------------                      -----------------------------------                      -----------------------------------
        Total operating expenses                                                                                         1,050,253                               877,917                             3,932,639                             3,158,727  
                                                                                                                    -----------------------------------                      -----------------------------------                      -----------------------------------                      -----------------------------------
OPERATING INCOME                                                                                                           489,296                               402,124                             1,853,029                             1,612,789  
                                                                                                                    -----------------------------------                      -----------------------------------                      -----------------------------------                      -----------------------------------
OTHER INCOME (EXPENSE):
   Interest income, TV Azteca, net of interest expense of $317, $40,                                                         2,754                                                    2,958                                                   10,960                                                   11,209
   $1,163 and $820, respectively
   Interest income                                                                                                           9,240                                                    4,608                                                   25,618                                                   16,479
   Interest expense                                                                                                       (186,049 )                                               (149,721 )                                               (717,125 )                                               (595,949 )
   Gain (loss) on retirement of long-term obligations                                                                          338                                                     (813 )                                                  1,168                                                  (79,606 )
   Other expense (including unrealized foreign currency losses
   (gains) of $19,895,
                                                                                                                           (21,896 )                                                (11,669 )                                                (47,790 )                                               (134,960 )
     ($36,398), $23,439 and $71,473, respectively)
                                                                                                                    -------------  --------------------                      -------------  --------------------                      -------------  --------------------                      -------------  --------------------
       Total other expense                                                                                                (195,613 )                                               (154,637 )                                               (727,169 )                                               (782,827 )
                                                                                                                    -----------------------------------                      -----------------------------------                      -----------------------------------                      -----------------------------------
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES                                                                      293,683                                                  247,487                                                1,125,860                                                  829,962
   Income tax provision(1)                                                                                                 (60,830 )                                                (25,892 )                                               (155,501 )                                               (157,955 )
                                                                                                                    -----------------------------------                      -----------------------------------                      -----------------------------------                      -----------------------------------
NET INCOME                                                                                                                 232,853                                                  221,595                                                  970,359                                                  672,007
   Net (income) loss attributable to noncontrolling interests                                                               (3,646 )                                                 11,107                               (13,934 )                                                 13,067  
                                                                                                                    -----------------------------------                      -----------------------------------                      -----------------------------------                      -----------------------------------
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION STOCKHOLDERS                                                         229,207                                                  232,702                                                  956,425                                                  685,074
Dividends on preferred stock                                                                                               (26,781 )                                                (26,781 )                                               (107,125 )                                                (90,163 )
                                                                                                                    -----------------------------------                      -----------------------------------                      -----------------------------------                      -----------------------------------
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON                                                           $   202,426                           $   205,921                           $   849,300                           $   594,911  
STOCKHOLDERS
                                                                                                                    ==== ========= ====================                      ==== ========= ====================                      ==== ========= ====================                      ==== ========= ====================
NET INCOME PER COMMON SHARE AMOUNTS:
   Basic net income attributable to American Tower Corporation common                                                  $      0.48                           $      0.49                           $      2.00                           $      1.42  
   stockholders
                                                                                                                    ==== ========= ====================                      ==== ========= ====================                      ==== ========= ====================                      ==== ========= ====================
   Diluted net income attributable to American Tower Corporation common                                                $      0.47                           $      0.48                           $      1.98                           $      1.41  
   stockholders
                                                                                                                    ==== ========= ====================                      ==== ========= ====================                      ==== ========= ====================                      ==== ========= ====================
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
   BASIC                                                                                                                   426,071                               423,736                               425,143                               418,907  
                                                                                                                    ===================================                      ===================================                      ===================================                      ===================================
   DILUTED                                                                                                                 429,896                               427,802                               429,283                               423,015  
                                                                                                                    ===================================                      ===================================                      ===================================                      ===================================
_______________
(1)     Full year 2015 amount includes the impact of a one-time cash tax
                                              charge of approximately $93 million as part of the tax election
                                              related to the GTP REIT recorded in the third quarter of 2015.
                                               
                                                                           
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
                                                                                                                   
                                                                                                                                                Twelve Months Ended December 31,
                                                                                                                  ---------------------------------------------------------------------------------------------
                                                                                                                                  2016                                  2015
                                                                                                                  -------------------------------------                     -----------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net income                                                                                                         $ 970,359                                               $ 672,007
     Adjustments to reconcile net income to cash provided by operating
     activities:
        Depreciation, amortization and accretion                                                                        1,525,635                                               1,285,328
        Stock-based compensation expense                                                                                   89,898                                                  90,537
        (Gain) loss on early retirement of long-term obligations                                                           (1,168 )                                                79,750
        Other non-cash items reflected in statements of operations                                                        222,689                                                 190,718
        Decrease in restricted cash                                                                                         5,256                                                  16,112
        Increase in net deferred rent balances                                                                            (63,896 )                                               (98,883 )
        Increase in assets                                                                                                (71,877 )                                              (147,425 )
        Increase in liabilities                                                                                            26,708                               94,908  
                                                                                                                  ------------------------------------                      ----------------------------------
Cash provided by operating activities                                                                                   2,703,604                            2,183,052  
                                                                                                                  ------------------------------------                      ----------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
    Payments for purchase of property and equipment and construction                                                     (682,505 )                                              (728,753 )
    activities
    Payments for acquisitions, net of cash acquired                                                                    (1,416,373 )                                            (1,961,056 )
    Payment for Verizon transaction                                                                                        (4,748 )                                            (5,059,462 )
    Proceeds from sales of short-term investments and other non-current                                                    13,056                                               1,032,320
    assets
    Payments for short-term investments                                                                                      (750 )                                            (1,022,816 )
    Deposits, restricted cash and other                                                                                   (16,126 )                                                (1,968 )
                                                                                                                  ------------------------------------                      ----------------------------------
Cash used for investing activities                                                                                     (2,107,446 )                                            (7,741,735 )
                                                                                                                  ------------------------------------                      ----------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from short-term borrowings, net                                                                       --                                                   9,043
    Borrowings under credit facilities                                                                                  2,446,845                                               6,126,618
    Proceeds from issuance of senior notes, net                                                                         3,236,383                                               1,492,298
    Proceeds from term loan                                                                                        --                                                 500,000
    Proceeds from other borrowings                                                                                 --                                                  54,549
    Proceeds from issuance of securities in securitization transaction                                             --                                                 875,000
    Repayments of notes payable, credit facilities, term loan, senior                                                  (5,093,747 )                                            (6,393,405 )
    notes and capital leases(1)
    Contributions from noncontrolling interest holders, net                                                               238,480                                                   7,201
    Proceeds from stock options and stock purchase plan                                                                    92,473                                                  50,716
    Distributions paid on preferred stock                                                                                (107,125 )                                               (84,647 )
    Distributions paid on common stock                                                                                   (886,116 )                                              (710,852 )
    Proceeds from the issuance of common stock, net                                                                --                                               2,440,327
    Proceeds from the issuance of preferred stock, net                                                             --                                               1,337,946
    Payment for early retirement of long-term obligations                                                                     (86 )                                               (85,672 )
    Deferred financing costs and other financing activities                                                               (26,401 )                                               (30,021 )
                                                                                                                  ------------------------------------                      ----------------------------------
Cash (used for) provided by financing activities                                                                          (99,294 )                                             5,589,101  
                                                                                                                  ------------------------------------                      ----------------------------------
Net effect of changes in foreign currency exchange rates on cash and                                                      (30,389 )                                               (23,224 )
cash equivalents
                                                                                                                  --------------  --------------------                      ------------  --------------------
NET INCREASE IN CASH AND CASH EQUIVALENTS                                                                                 466,475                                                   7,194
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                                                            320,686                              313,492  
                                                                                                                  ------------------------------------                      ----------------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                                                                $ 787,161                            $ 320,686  
                                                                                                                  ======= ======= ====================                      ===== ======= ====================
CASH PAID FOR INCOME TAXES, NET                                                                                         $  96,241                            $ 157,058  
                                                                                                                  ======= ======= ====================                      ===== ======= ====================
CASH PAID FOR INTEREST                                                                                                  $ 645,092                            $ 577,952  
                                                                                                                  ======= ======= ====================                      ===== ======= ====================
_______________
(1)     Twelve months ended December 31, 2016 includes $18.9 million of
                                              payments on capital leases of property and equipment.
                                               
                                           
UNAUDITED CONSOLIDATED RESULTS FROM OPERATIONS, BY SEGMENT
($
in millions. Totals may not add due to rounding.)
                                                                                   
                                                                                                                                                                                                                                                                                 Three Months Ended December 31, 2016
                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                      Property                                                                                                                                                                     Services                                Total
                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  U.S.                               Latin                             Asia                                   EMEA                                Total                            Total
                                                                                                                                                       America                                                                                                                                                            International                                         Property
                                                                                  ----------------------------------                        -------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------                        ---------------------------
Segment revenues                                                                        $     852                                            $ 265                                                 $     270                                                 $     134                                              $  670                                            $ 1,521                                                 $      18                                                $  1,540
Segment operating expenses(1)                                                                 185                                               91                                                       151                                                        56                                                 297                                                482                                                         6                                                     487
Interest income, TV Azteca, net                                                    --                             3                         --                         --                                3                               3                         --                                    3  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------                      -----------------------------                      ------------------------------------                      ----------------------------------
Segment Gross Margin                                                                    $     667                         $ 177                              $     119                              $      79                           $  375                         $ 1,042                              $      13                             $  1,055  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ---- --------------------                      -- ----- --------------------                      ------- ------- --------------------                      ------ ------ --------------------
Segment SG&A(1)                                                                                40                            16                                     12                                     15                               43                              83                                      4                                   86  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------                      -----------------------------                      ------------------------------------                      ----------------------------------
Segment Operating Profit                                                                $     627                         $ 162                              $     107                              $      64                           $  333                         $   960                              $       9                             $    969  
                                                                                  ======= ======= ====================                      == === ====================                      ======= ======= ====================                      ======= ======= ====================                      ==== ==== ====================                      == ===== ====================                      ======= ======= ====================                      ====== ====== ====================
Segment Operating Profit Margin                                                                74                    %                          61 %                                                      40                    %                                   47                    %                             50 %                                               63 %                                                      50 %                                                    63 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Revenue Growth                                                                                2.8                    %                        13.2 %                                                   324.9                    %                                  8.1                    %                           58.6 %                                             21.6 %                                                   (37.1 )%                                                 20.3 %
Total Tenant Billings Growth                                                                  6.0                    %                        17.6 %                                                   347.1                    %                                 16.0                    %                           61.0 %                                             20.8 %
Organic Tenant Billings Growth                                                                5.8                    %                        13.1 %                                                    19.1                    %                                 11.2                    %                           13.3 %                                              7.8 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Revenue Components(2)
Prior-Year Tenant Billings                                                              $     755                                            $ 150                                                 $      37                                                 $      91                                              $  279                                            $ 1,034
Colocations/Amendments                                                                         34                                                9                                                         8                                                         5                                                  22                                                 57
Escalations                                                                                    22                                               11                                                         3                                                         5                                                  19                                                 41
Cancellations                                                                                 (14 )                                             (1 )                                                      (3 )                                                      (1 )                                                (5 )                                              (19 )
Other                                                                                           2                             0                                     (0 )                                                       1                                1                               3  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------                      -----------------------------
Organic Tenant Billings                                                                 $     799                         $ 170                              $      44                              $     102                           $  316                         $ 1,115  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ---- --------------------                      -- ----- --------------------
New Site Tenant Billings                                                                        1                             7                                    122                                      4                              133                             134  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------                      -----------------------------
Total Tenant Billings                                                                   $     800                         $ 177                              $     166                              $     106                           $  449                         $ 1,249  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ---- --------------------                      -- ----- --------------------
Foreign Currency Exchange Impact(3)                                                --                             4                                     (4 )                                                      (6 )                                                (6 )                                               (6 )
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------                      -----------------------------
Total Tenant Billings (Current Period)                                                  $     800                         $ 181                              $     163                              $     100                           $  444                         $ 1,243  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ---- --------------------                      -- ----- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Straight-Line Revenue                                                                          17                                                8                                                         5                                                         1                                                  14                                                 31
Prepaid Amortization Revenue                                                                   25                                                1                                            --                                                         0                                                   1                                                 26
Other Revenue                                                                                  10                                                7                                                        (5 )                                                      (2 )                                                 0                                                 10
International Pass-Through Revenue                                                 --                                               66                                                       110                                                        46                                                 222                                                222
Foreign Currency Exchange Impact(4)                                                --                             3                                     (3 )                                                     (11 )                                               (10 )                                              (10 )
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------                      -----------------------------
Total Property Revenue (Current Period)                                                 $     852                         $ 265                              $     270                              $     134                           $  670                         $ 1,521  
                                                                                  ======= ======= ====================                      == === ====================                      ======= ======= ====================                      ======= ======= ====================                      ==== ==== ====================                      == ===== ====================
_______________
(1)     Excludes stock-based compensation expense.
(2)                                           All components of revenue, except those labeled current period, have
                                              been translated at prior period foreign exchange rates.
(3)                                           Reflects foreign currency exchange impact on all components of Total
                                              Tenant Billings.
(4)                                           Reflects foreign currency exchange impact on components of revenue,
                                              other than Total Tenant Billings.
                                               
                                           
UNAUDITED CONSOLIDATED RESULTS FROM OPERATIONS, BY SEGMENT
(CONTINUED)
($ in millions. Totals may not add due to
rounding.)
                                                                                   
                                                                                                                                                                                                                                                                                 Three Months Ended December 31, 2015
                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                      Property                                                                                                                                                                     Services                                Total
                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  U.S.                               Latin                             Asia                                   EMEA                                Total                            Total
                                                                                                                                                       America                                                                                                                                                            International                                         Property
                                                                                  ----------------------------------                        -------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------                        ---------------------------
Segment revenues                                                                        $     829                                            $ 234                                                 $      64                                                 $     124                                              $  422                                            $ 1,251                                                 $      29                                                $  1,280
Segment operating expenses(1)                                                                 176                                               83                                                        33                                                        54                                                 169                                                345                                                        10                                                     356
Interest income, TV Azteca, net                                                    --                             3                         --                         --                                3                               3                         --                                    3  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------                      -----------------------------                      ------------------------------------                      ----------------------------------
Segment Gross Margin                                                                    $     653                         $ 155                              $      31                              $      71                           $  256                         $   909                              $      18                             $    927  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ---- --------------------                      -- ----- --------------------                      ------- ------- --------------------                      ------ ------ --------------------
Segment SG&A(1)                                                                                49                            18                                      6                                     15                               38                              87                                      5                                   92  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------                      -----------------------------                      ------------------------------------                      ----------------------------------
Segment Operating Profit                                                                $     604                         $ 137                              $      25                              $      56                           $  218                         $   821                              $      13                             $    835  
                                                                                  ======= ======= ====================                      == === ====================                      ======= ======= ====================                      ======= ======= ====================                      ==== ==== ====================                      == ===== ====================                      ======= ======= ====================                      ====== ====== ====================
Segment Operating Profit Margin                                                                73                    %                          58 %                                                      39                    %                                   45                    %                             52 %                                               66 %                                                      46 %                                                    65 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Revenue Growth                                                                               21.8                    %                        10.0 %                                                    11.4                    %                                 57.5                    %                           21.0 %                                             21.5 %                                                    75.7 %                                                  22.3 %
Total Tenant Billings Growth                                                                 21.1                    %                        32.5 %                                                    22.5                    %                                 85.7                    %                           43.3 %                                             27.3 %
Organic Tenant Billings Growth                                                                6.1                    %                        12.4 %                                                    12.4                    %                                 16.0                    %                           13.2 %                                              8.1 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Revenue Components(2)
Prior-Year Tenant Billings                                                              $     623                                            $ 156                                                 $      32                                                 $      55                                              $  243                                            $   867
Colocations/Amendments                                                                         33                                               11                                                         4                                                         5                                                  20                                                 53
Escalations                                                                                    19                                                9                                                         1                                                         4                                                  14                                                 33
Cancellations                                                                                 (14 )                                             (2 )                                                      (1 )                                                      (0 )                                                (2 )                                              (17 )
Other                                                                                          (0 )                                              1                                      0                                     (0 )                                                 1                               1  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------                      -----------------------------
Organic Tenant Billings                                                                 $     661                         $ 175                              $      36                              $      64                           $  276                         $   937  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ---- --------------------                      -- ----- --------------------
New Site Tenant Billings                                                                       93                            31                                      3                                     39                               73                             167  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------                      -----------------------------
Total Tenant Billings                                                                   $     755                         $ 206                              $      40                              $     103                           $  349                         $ 1,104  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ---- --------------------                      -- ----- --------------------
Foreign Currency Exchange Impact(3)                                                --                           (56 )                                                      (2 )                                                     (11 )                                               (70 )                                              (70 )
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------                      -----------------------------
Total Tenant Billings (Current Period)                                                  $     755                         $ 150                              $      37                              $      91                           $  279                         $ 1,034  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ---- --------------------                      -- ----- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Straight-Line Revenue                                                                          30                                               19                                                         0                                                         2                                                  21                                                 51
Prepaid Amortization Revenue                                                                   22                                                0                                            --                                                         0                                                   0                                                 23
Other Revenue                                                                                  22                                                7                                                         0                                                         1                                                   8                                                 31
International Pass-Through Revenue                                                 --                                               85                                                        27                                                        34                                                 147                                                147
Foreign Currency Exchange Impact(4)                                                --                           (28 )                                                      (2 )                                                      (4 )                                               (33 )                                              (33 )
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------                      -----------------------------
Total Property Revenue (Current Period)                                                 $     829                         $ 234                              $      64                              $     124                           $  422                         $ 1,251  
                                                                                  ======= ======= ====================                      == === ====================                      ======= ======= ====================                      ======= ======= ====================                      ==== ==== ====================                      == ===== ====================
_______________
(1)     Excludes stock-based compensation expense.
(2)                                           All components of revenue, except those labeled current period, have
                                              been translated at prior period foreign exchange rates.
(3)                                           Reflects foreign currency exchange impact on all components of Total
                                              Tenant Billings.
(4)                                           Reflects foreign currency exchange impact on components of revenue,
                                              other than Total Tenant Billings.
                                               
                                           
UNAUDITED CONSOLIDATED RESULTS FROM OPERATIONS, BY SEGMENT
(CONTINUED)
($ in millions. Totals may not add due to
rounding.)
                                                                                   
                                                                                                                                                                                                                                                                                  Twelve Months Ended December 31, 2016
                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                       Property                                                                                                                                                                     Services                                Total
                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  U.S.                               Latin                             Asia                                   EMEA                                 Total                            Total
                                                                                                                                                       America                                                                                                                                                             International                                         Property
                                                                                  ----------------------------------                        -------------------------                        ----------------------------------                        ----------------------------------                        -----------------------------                        ---------------------------
Segment revenues                                                                        $   3,370                                            $ 986                                                 $     828                                                 $     530                                              $ 2,343                                            $ 5,713                                                 $      73                                                $  5,786
Segment operating expenses(1)                                                                 733                                              338                                                       466                                                       224                                                1,028                                              1,761                                                        27                                                   1,788
Interest income, TV Azteca, net                                                    --                            11                         --                         --                                11                              11                         --                                   11  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      -------------------------------                      -----------------------------                      ------------------------------------                      ----------------------------------
Segment Gross Margin                                                                    $   2,637                         $ 659                              $     362                              $     306                           $ 1,327                         $ 3,963                              $      46                             $  4,009  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ----- --------------------                      -- ----- --------------------                      ------- ------- --------------------                      ------ ------ --------------------
Segment SG&A(1)                                                                               148                            61                                     48                                     61                               170                             317                                     13                                  330  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      -------------------------------                      -----------------------------                      ------------------------------------                      ----------------------------------
Segment Operating Profit                                                                $   2,489                         $ 598                              $     313                              $     245                           $ 1,157                         $ 3,646                              $      33                             $  3,679  
                                                                                  ======= ======= ====================                      == === ====================                      ======= ======= ====================                      ======= ======= ====================                      ==== ===== ====================                      == ===== ====================                      ======= ======= ====================                      ====== ====== ====================
Segment Operating Profit Margin                                                                74                    %                          61 %                                                      38                    %                                   46                    %                              49 %                                               64 %                                                      46 %                                                    64 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Revenue Growth                                                                                6.7                    %                        11.3 %                                                   241.7                    %                                 34.0                    %                            53.9 %                                             22.1 %                                                   (20.4 )%                                                 21.3 %
Total Tenant Billings Growth                                                                  8.9                    %                        21.2 %                                                   259.4                    %                                 42.4                    %                            59.2 %                                             22.4 %
Organic Tenant Billings Growth                                                                5.8                    %                        13.2 %                                                    13.4                    %                                 14.1                    %                            13.5 %                                              7.8 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Revenue Components(2)
Prior-Year Tenant Billings                                                              $   2,881                                            $ 620                                                 $     142                                                 $     292                                              $ 1,055                                            $ 3,936
Colocations/Amendments                                                                        129                                               37                                                        22                                                        22                                                   81                                                210
Escalations                                                                                    83                                               47                                                         7                                                        19                                                   73                                                155
Cancellations                                                                                 (49 )                                             (4 )                                                      (9 )                                                      (2 )                                                (15 )                                              (64 )
Other                                                                                           3                             2                                     (1 )                                                       2                                 3                               6  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      -------------------------------                      -----------------------------
Organic Tenant Billings                                                                 $   3,046                         $ 702                              $     161                              $     334                           $ 1,197                         $ 4,243  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ----- --------------------                      -- ----- --------------------
New Site Tenant Billings                                                                       91                            50                                    350                                     83                               482                             573  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      -------------------------------                      -----------------------------
Total Tenant Billings                                                                   $   3,138                         $ 751                              $     511                              $     417                           $ 1,679                         $ 4,817  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ----- --------------------                      -- ----- --------------------
Foreign Currency Exchange Impact(3)                                                --                           (69 )                                                     (20 )                                                     (27 )                                               (117 )                                             (117 )
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      -------------------------------                      -----------------------------
Total Tenant Billings (Current Period)                                                  $   3,138                         $ 682                              $     491                              $     389                           $ 1,563                         $ 4,700  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ----- --------------------                      -- ----- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Straight-Line Revenue                                                                          79                                               40                                                        14                                                         4                                                   59                                                138
Prepaid Amortization Revenue                                                                   94                                                2                                            --                                                         0                                                    2                                                 97
Other Revenue                                                                                  59                                                9                                                        (6 )                                                      (1 )                                                  2                                                 61
International Pass-Through Revenue                                                 --                                              281                                                       343                                                       159                                                  783                                                783
Foreign Currency Exchange Impact(4)                                                --                           (28 )                                                     (14 )                                                     (23 )                                                (65 )                                              (65 )
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      -------------------------------                      -----------------------------
Total Property Revenue (Current Period)                                                 $   3,370                         $ 986                              $     828                              $     530                           $ 2,343                         $ 5,713  
                                                                                  ======= ======= ====================                      == === ====================                      ======= ======= ====================                      ======= ======= ====================                      ==== ===== ====================                      == ===== ====================
_______________
(1)     Excludes stock-based compensation expense.
(2)                                           All components of revenue, except those labeled current period, have
                                              been translated at prior period foreign exchange rates.
(3)                                           Reflects foreign currency exchange impact on all components of Total
                                              Tenant Billings.
(4)                                           Reflects foreign currency exchange impact on components of revenue,
                                              other than Total Tenant Billings.
                                               
                                           
UNAUDITED CONSOLIDATED RESULTS FROM OPERATIONS, BY SEGMENT
(CONTINUED)
($ in millions. Totals may not add due to
rounding.)
                                                                                   
                                                                                                                                                                                                                                                                                  Twelve Months Ended December 31, 2015
                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                       Property                                                                                                                                                                     Services                                Total
                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  U.S.                               Latin                             Asia                                   EMEA                                 Total                            Total
                                                                                                                                                       America                                                                                                                                                             International                                         Property
                                                                                  ----------------------------------                        -------------------------                        ----------------------------------                        ----------------------------------                        -----------------------------                        ---------------------------
Segment revenues                                                                        $   3,158                                            $ 886                                                 $     242                                                 $     395                                              $ 1,523                                            $ 4,680                                                 $      91                                                $  4,772
Segment operating expenses(1)                                                                 678                                              305                                                       127                                                       164                                                  595                                              1,274                                                        33                                                   1,307
Interest income, TV Azteca, net                                                    --                            11                         --                         --                                11                              11                         --                                   11  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      -------------------------------                      -----------------------------                      ------------------------------------                      ----------------------------------
Segment Gross Margin                                                                    $   2,479                         $ 592                              $     115                              $     231                           $   939                         $ 3,418                              $      58                             $  3,476  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ----- --------------------                      -- ----- --------------------                      ------- ------- --------------------                      ------ ------ --------------------
Segment SG&A(1)                                                                               139                            62                                     23                                     49                               134                             272                                     16                                  288  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      -------------------------------                      -----------------------------                      ------------------------------------                      ----------------------------------
Segment Operating Profit                                                                $   2,340                         $ 530                              $      93                              $     183                           $   805                         $ 3,146                              $      42                             $  3,188  
                                                                                  ======= ======= ====================                      == === ====================                      ======= ======= ====================                      ======= ======= ====================                      ==== ===== ====================                      == ===== ====================                      ======= ======= ====================                      ====== ====== ====================
Segment Operating Profit Margin                                                                74                    %                          60 %                                                      38                    %                                   46                    %                              53 %                                               67 %                                                      47 %                                                    67 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Revenue Growth                                                                               19.6                    %                         6.4 %                                                    10.3                    %                                 25.4                    %                            11.4 %                                             16.8 %                                                    (2.2 )%                                                 16.4 %
Total Tenant Billings Growth                                                                 18.9                    %                        33.7 %                                                    20.8                    %                                 50.6                    %                            36.0 %                                             23.8 %
Organic Tenant Billings Growth                                                                6.4                    %                        11.5 %                                                    11.8                    %                                 14.8                    %                            12.3 %                                              8.1 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Revenue Components(2)
Prior-Year Tenant Billings                                                              $   2,422                                            $ 606                                                 $     124                                                 $     225                                              $   955                                            $ 3,377
Colocations/Amendments                                                                        141                                               42                                                        17                                                        17                                                   76                                                217
Escalations                                                                                    75                                               32                                                         3                                                        17                                                   51                                                126
Cancellations                                                                                 (56 )                                             (7 )                                                      (6 )                                                      (0 )                                                (13 )                                              (69 )
Other                                                                                          (5 )                                              4                                     (0 )                                                       0                                 4                              (2 )
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      -------------------------------                      -----------------------------
Organic Tenant Billings                                                                 $   2,577                         $ 676                              $     138                              $     258                           $ 1,073                         $ 3,649  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ----- --------------------                      -- ----- --------------------
New Site Tenant Billings                                                                      304                           134                                     11                                     80                               226                             530  
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      -------------------------------                      -----------------------------
Total Tenant Billings                                                                   $   2,881                         $ 811                              $     149                              $     338                           $ 1,299                         $ 4,179  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ----- --------------------                      -- ----- --------------------
Foreign Currency Exchange Impact(3)                                                --                          (191 )                                                      (7 )                                                     (46 )                                               (244 )                                             (244 )
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      -------------------------------                      -----------------------------
Total Tenant Billings (Current Period)                                                  $   2,881                         $ 620                              $     142                              $     292                           $ 1,055                         $ 3,936  
                                                                                  ------- ------- --------------------                      -- --- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ---- ----- --------------------                      -- ----- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Straight-Line Revenue                                                                         119                                               34                                                         1                                                         7                                                   43                                                162
Prepaid Amortization Revenue                                                                   81                                                2                                            --                                                         0                                                    2                                                 83
Other Revenue                                                                                  76                                               17                                                        (0 )                                                       3                                                   20                                                 96
International Pass-Through Revenue                                                 --                                              289                                                       104                                                       108                                                  502                                                502
Foreign Currency Exchange Impact(4)                                                --                           (77 )                                                      (5 )                                                     (17 )                                                (99 )                                              (99 )
                                                                                  ------------------------------------                      ---------------------------                      ------------------------------------                      ------------------------------------                      -------------------------------                      -----------------------------
Total Property Revenue (Current Period)                                                 $   3,158                         $ 886                              $     242                              $     395                           $ 1,523                         $ 4,680  
                                                                                  ======= ======= ====================                      == === ====================                      ======= ======= ====================                      ======= ======= ====================                      ==== ===== ====================                      == ===== ====================
_______________
(1)     Excludes stock-based compensation expense.
(2)                                           All components of revenue, except those labeled current period, have
                                              been translated at prior period foreign exchange rates.
(3)                                           Reflects foreign currency exchange impact on all components of Total
                                              Tenant Billings.
(4)                                           Reflects foreign currency exchange impact on components of revenue,
                                              other than Total Tenant Billings.
                                               

UNAUDITED SELECTED CONSOLIDATED FINANCIAL INFORMATION ($ in thousands. Totals may not add due to rounding.)

The following table reflects the estimated impact of foreign currency exchange rate fluctuations, international pass-through revenue and straight-line revenue and expense recognition on total property revenue, Adjusted EBITDA and Consolidated AFFO growth rates.

Components of Growth(1)(2):                                                                              
                                                                                                                                                                                       
Three months ended December 31, 2016                                                                           Property                            Adjusted                               Consolidated
                                                                                                                Revenue                             EBITDA                                    AFFO
                                                                                                              --------                       ------------------                       -------------------
Growth                                                                                                        21.6 %                                   16.7 %                                   20.9 %
Estimated impact of fluctuations in foreign currency exchange rates                                           (0.5 )%                                  (0.1 )%                                  (0.3 )%
Estimated impact of straight-line revenue and expense recognition                                             (2.3 )%                                  (2.9 )%                        -- %
Estimated impact of international pass-through revenue                                                         6.1 %                         -- %                         -- %
                                                                                                                                                                                       
Twelve months ended December 31, 2016                                    Property         Adjusted            Consolidated
                                                                                                                Revenue                             EBITDA                                    AFFO
                                                                                                              --------                       ------------------                       -------------------
                                                                                                                                                                                       
Growth                                                                                                        22.1 %                                   15.9 %                                   15.8 %
Estimated impact of fluctuations in foreign currency exchange rates                                           (2.6 )%                                  (2.6 )%                                  (2.9 )%
Estimated impact of straight-line revenue and expense recognition                                             (1.3 )%                                  (1.7 )%                        -- %
Estimated impact of international pass-through revenue                                                         5.2 %                         -- %                         -- %
_______________
(1)     See "Non-GAAP and Defined Financial Measures" above.
(2)                                           Growth components for net income are not provided, as the impact of
                                              each of the line items on the measure cannot be calculated without
                                              unreasonable effort.
                                               

The reconciliation of net income to Adjusted EBITDA and the calculation of Adjusted EBITDA Margin are as follows:

                                                                                              Three Months Ended                                                                           Twelve Months Ended
                                                                                                                                       December 31,                                                                                                    December 31,
                                                                                                 ----------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------
                                                                                                                2016                                2015                                                    2016                                  2015
                                                                                                 ----------------------------------                     ----------------------------------                     ------------------------------------                     ------------------------------------
Net income                                                                                          $ 232,853                                              $ 221,595                                              $   970,359                                              $   672,007
    Income tax provision                                                                               60,830                                                 25,892                                                  155,501                                                  157,955
    Other expense                                                                                      21,896                                                 11,669                                                   47,790                                                  134,960
    (Gain) loss on retirement of long-term obligations                                                   (338 )                                                  813                                                   (1,168 )                                                 79,606
    Interest expense                                                                                  186,049                                                149,721                                                  717,125                                                  595,949
    Interest income                                                                                    (9,240 )                                               (4,608 )                                                (25,618 )                                                (16,479 )
    Other operating expenses                                                                           35,711                                                 25,805                                                   73,220                                                   66,696
    Depreciation, amortization and accretion                                                          388,237                                                352,356                                                1,525,635                                                1,285,328
    Stock-based compensation expense                                                                   19,686                              18,286                                89,898                                90,537  
                                                                                                 ---------------------------------                      ---------------------------------                      -----------------------------------                      -----------------------------------
Adjusted EBITDA                                                                                     $ 935,684                           $ 801,529                           $ 3,552,742                           $ 3,066,559  
                                                                                                 ==== ======= ====================                      ==== ======= ====================                      ==== ========= ====================                      ==== ========= ====================
Total revenue                                                                                       1,539,549                           1,280,041                             5,785,668                             4,771,516  
                                                                                                 ---------------------------------                      ---------------------------------                      -----------------------------------                      -----------------------------------
    Adjusted EBITDA Margin                                                                                 61                    %                                63                    %                                  61                    %                                  64                    %
                                                                                                 =================================                      =================================                      ===================================                      ===================================
                                                                                                                                                                                                                                                                                        

UNAUDITED RECONCILIATIONS TO GAAP MEASURES AND THE CALCULATION OF DEFINED FINANCIAL MEASURES ($ in thousands, except per share data. Totals may not add due to rounding.)

The reconciliation of NAREIT FFO attributable to American Tower Corporation common stockholders to net income and the calculation of Consolidated AFFO, Consolidated AFFO per Share, AFFO attributable to American Tower Corporation common stockholders and AFFO attributable to American Tower Corporation common stockholders per Share are presented below:

                                                                                                                                                                            
                                                                                                                                                        Three Months Ended                                                                                                   Twelve Months Ended
                                                                                                                                                           December 31,                                                                                                         December 31,
                                                                                                                  ----------------------------------------------------------------------------------------                            -----------------------------------------------------------------------------------------
                                                                                                                                  2016                                   2015                                                       2016                                    2015
                                                                                                                  -------------------------------------                     -------------------------------------                     ---------------------------------------                     ------------------------------------
Net income                                                                                                              $ 232,853                                                 $ 221,595                                                 $   970,359                                              $   672,007
    Real estate related depreciation, amortization and accretion                                                          345,360                                                   311,066                                                   1,358,927                                                1,128,340
    Losses from sale or disposal of real estate and real estate related
                                                                                                                           32,583                                                    17,771                                                      54,465                                                   29,427
      impairment charges
    Dividends on preferred stock                                                                                          (26,781 )                                                 (26,781 )                                                  (107,125 )                                                (90,163 )
    Adjustments for unconsolidated affiliates and noncontrolling                                                          (26,951 )                                                   5,849                                  (88,133 )                                                 (6,429 )
    interests
                                                                                                                  --------------  --------------------                      --------------  --------------------                      ----------------  --------------------                      -------------  --------------------
NAREIT FFO attributable to AMT common stockholders                                                                      $ 557,064                              $ 529,500                              $ 2,188,493                           $ 1,733,182  
                                                                                                                  ------- ------- --------------------                      ------- ------- --------------------                      ------- --------- --------------------                      ---- --------- --------------------
    Straight-line revenue                                                                                                 (29,771 )                                                 (46,782 )                                                  (131,660 )                                               (154,959 )
    Straight-line expense                                                                                                  17,637                                                    16,918                                                      67,764                                                   56,076
    Stock-based compensation expense                                                                                       19,686                                                    18,286                                                      89,898                                                   90,537
    Deferred portion of income tax                                                                                         36,457                                                      (935 )                                                    59,260                                                      897
    GTP REIT One-time charge(1)                                                                                    --                                            --                                              --                                                   93,044
    Non-real estate related depreciation, amortization and accretion                                                       42,877                                                    41,290                                                     166,708                                                  156,988
    Amortization of deferred financing costs, capitalized interest and
    debt
                                                                                                                            5,715                                                     6,383                                                      23,139                                                   22,575
      discounts and premiums and long-term deferred interest charges
    Other expense(2)                                                                                                       21,896                                                    11,669                                                      47,790                                                  134,960
    (Gain) loss on retirement of long-term obligations                                                                       (338 )                                                     813                                                      (1,168 )                                                 79,606
    Other operating expense(3)                                                                                              3,128                                                     8,034                                                      18,755                                                   37,269
    Capital improvement capital expenditures                                                                              (39,797 )                                                 (31,032 )                                                  (110,249 )                                                (89,867 )
    Corporate capital expenditures                                                                                         (6,706 )                                                  (6,567 )                                                   (16,438 )                                                (16,447 )
    Adjustments for unconsolidated affiliates and noncontrolling                                                           26,951                                 (5,849 )                                                    88,133                                 6,429  
    interests
                                                                                                                  --------------  --------------------                      --------------  --------------------                      ----------------  --------------------                      -------------  --------------------
Consolidated AFFO                                                                                                         654,799             541,728                                2,490,425                             2,150,290  
                                                                                                                  ------------------------------------ -------------------- ------------------------------------                      --------------------------------------                      -----------------------------------
    Adjustments for unconsolidated affiliates and noncontrolling                                                          (23,827 )                               (2,486 )                                                   (90,266 )                                                (33,982 )
    interests(4)
                                                                                                                  --------------  -------------------- -------------------- --------------  --------------------                      ----------------  --------------------                      -------------  --------------------
AFFO attributable to AMT common stockholders                                                                            $ 630,972                              $ 539,242                              $ 2,400,159                           $ 2,116,308  
                                                                                                                  ------- ------- --------------------                      ------- ------- --------------------                      ------- --------- --------------------                      ---- --------- --------------------
    Divided by weighted average diluted shares outstanding                                                                429,896                                427,802                                  429,283                               423,015  
                                                                                                                  ------------------------------------                      ------------------------------------                      --------------------------------------                      -----------------------------------
Consolidated AFFO per Share                                                                                             $    1.52                              $    1.27                              $      5.80                           $      5.08  
                                                                                                                  ------- ------- --------------------                      ------- ------- --------------------                      ------- --------- --------------------                      ---- --------- --------------------
AFFO attributable to AMT common stockholders per Share                                                                  $    1.47                              $    1.26                              $      5.59                           $      5.00  
                                                                                                                  ------- ------- --------------------                      ------- ------- --------------------                      ------- --------- --------------------                      ---- --------- --------------------
_______________
(1)     In the third quarter of 2015, the Company filed a tax election,
                                              pursuant to which GTP no longer operates as a separate REIT for
                                              federal and state income tax purposes. In connection with this
                                              election, the Company incurred a one-time cash tax charge during the
                                              third quarter of 2015. As this charge is non-recurring, the Company
                                              does not believe it is an indication of operating performance and
                                              believes it is more meaningful to present its AFFO metrics excluding
                                              its impact. Accordingly, the Company presents Consolidated AFFO,
                                              Consolidated AFFO per Share, AFFO attributable to American Tower
                                              Corporation common stockholders and AFFO attributable to American
                                              Tower Corporation common stockholders per Share for the twelve
                                              months ended December 31, 2015 excluding this charge.
(2)                                           Primarily includes realized and unrealized (gains) losses on foreign
                                              currency exchange rate fluctuations.
(3)                                           Primarily includes integration and acquisition-related costs.
(4)                                           Includes adjustments for the impact on both NAREIT FFO attributable
                                              to American Tower Corporation common stockholders as well as the
                                              other line items included in the calculation of Consolidated AFFO.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170227005373r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170227005373/en/

SOURCE: American Tower Corporation

American Tower Corporation 
Leah Stearns, 617-375-7500 
Senior Vice President, Treasurer and Investor Relations


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