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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________

FORM 10-Q
___________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period              to             
Commission File Number 001-16441
____________________________________
CCI-20210930_G1.JPG
CROWN CASTLE INTERNATIONAL CORP.
(Exact name of registrant as specified in its charter)
 
Delaware 76-0470458
(State or other jurisdiction
of incorporation or organization)
(I.R.S. Employer
Identification No.)
8020 Katy Freeway, Houston, Texas 77024
(Address of principal executives office) (Zip Code)
(713) 570-3000
(Registrant's telephone number, including area code)
____________________________________
 Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value CCI New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
Number of shares of common stock outstanding at November 2, 2021: 432,203,248



CROWN CASTLE INTERNATIONAL CORP. AND SUBSIDIARIES

INDEX
Page
3
ITEM 1.
3
3
4
5
6
8
ITEM 2.
ITEM 3.
ITEM 4.
ITEM 1. LEGAL PROCEEDINGS
ITEM 1A.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
ITEM 6.
EXHIBIT INDEX
SIGNATURES
Cautionary Language Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q ("Form 10-Q") contains forward-looking statements that are based on our management's expectations as of the filing date of this report with the Securities and Exchange Commission ("SEC"). Statements that are not historical facts are hereby identified as forward-looking statements. In addition, words such as "estimate," "anticipate," "project," "plan," "intend," "believe," "expect," "likely," "predicted," "positioned," "continue," "target," "seek," "focus" and any variations of these words and similar expressions are intended to identify forward-looking statements. Such statements include plans, projections and estimates contained in "Part I—Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" ("MD&A"), "Part I—Item 3. Quantitative and Qualitative Disclosures About Market Risk" and "Part II—Item 1A. Risk Factors" herein. Such forward-looking statements include (1) benefits and opportunities stemming from our strategy, strategic position, business model and capabilities, (2) the strength and growth potential of the U.S. market for shared communications infrastructure investment, (3) expectations regarding anticipated growth in the wireless industry, and consumption of and demand for data, including growth in, and factors driving, consumption and demand, (4) potential benefits of our communications infrastructure (on an individual and collective basis) and expectations regarding demand therefore, including potential benefits and continuity of and factors driving such demand, (5) expectations regarding construction, including duration of our construction projects, and acquisition of communications infrastructure, (6) the utilization of our net operating loss carryforwards ("NOLs"), (7) expectations regarding wireless carriers' focus on improving network quality and expanding capacity, (8) expectations regarding continued increase in usage of high-bandwidth applications by organizations, (9) expected use of net proceeds from issuances under the commercial paper program ("CP Program"), (10) our full year 2021 and 2022 outlook and the anticipated growth in our financial results, including future revenues and operating cash flows, and the expectations regarding our capital expenditures, as well as the factors impacting expected growth in financial results and the levels of capital expenditures, (11) expectations regarding our capital structure and the credit markets, our availability and cost of capital, capital allocation, our leverage ratio and interest coverage targets, our ability to service our debt and comply with debt covenants and the plans for and the benefits of any future refinancings, (12) the utility of certain financial measures, including non-GAAP financial measures, (13) expectations related to our ability to remain qualified as a real estate investment trust ("REIT") and the advantages, benefits or impact of, or opportunities created by, our REIT status, (14) adequacy, projected sources and uses of liquidity, (15) expectations regarding non-renewals of tenant contracts, (16) our dividend policy and the timing, amount, growth or tax characterization of our dividends, (17) the potential impact of novel coronavirus (COVID-19) pandemic and any measures taken with respect thereto and (18) the outcome of outstanding litigation. All future dividends are subject to declaration by our board of directors.
1


Such forward-looking statements should, therefore, be considered in light of various risks, uncertainties and assumptions, including prevailing market conditions, risk factors described in "Part II—Item 1A. Risk Factors" herein and "Item 1A. Risk Factors" of the Annual Report on Form 10-K for the fiscal year ended December 31, 2020 ("2020 Form 10-K") and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected.
Our filings with the SEC are available through the SEC website at www.sec.gov or through our investor relations website at investor.crowncastle.com. We use our investor relations website to disclose information about us that may be deemed to be material. We encourage investors, the media and others interested in us to visit our investor relations website from time to time to review up-to-date information or to sign up for e-mail alerts to be notified when new or updated information is posted on the site.
Interpretation
As used herein, the term "including," and any variation thereof, means "including without limitation." The use of the word "or" herein is not exclusive. Unless this Form 10-Q indicates otherwise or the context otherwise requires, the terms "we," "our," "our company," "the company" or "us" as used in this Form 10-Q refer to Crown Castle International Corp. ("CCIC") and its predecessor (organized in 1995), as applicable, each a Delaware corporation, and their subsidiaries. Additionally, unless the context suggests otherwise, references to "U.S." are to the United States of America and Puerto Rico, collectively. Capitalized terms used but not defined in this Form 10-Q have the same meaning given to them in the 2020 Form 10-K.

2


PART I—FINANCIAL INFORMATION
ITEM 1.FINANCIAL STATEMENTS

CROWN CASTLE INTERNATIONAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
(Amounts in millions, except par values)
  September 30,
2021
December 31, 2020
ASSETS    
Current assets:
Cash and cash equivalents $ 357  $ 232 
Restricted cash 180  144 
Receivables, net 493  431 
Prepaid expenses 120  95 
Other current assets 182  202 
Total current assets 1,332  1,104 
Deferred site rental receivables 1,516  1,408 
Property and equipment, net of accumulated depreciation of $11,660 and $10,803, respectively
15,174  15,162 
Operating lease right-of-use assets 6,659  6,464 
Goodwill 10,078  10,078 
Other intangible assets, net
4,115  4,433 
Other assets, net
130  119 
Total assets $ 39,004  $ 38,768 
LIABILITIES AND EQUITY    
Current liabilities:    
Accounts payable $ 231  $ 230 
Accrued interest 141  199 
Deferred revenues 822  704 
Other accrued liabilities 376  378 
Current maturities of debt and other obligations 72  129 
Current portion of operating lease liabilities 345  329 
Total current liabilities 1,987  1,969 
Debt and other long-term obligations 20,293  19,151 
Operating lease liabilities 6,000  5,808 
Other long-term liabilities
2,208  2,379 
Total liabilities 30,488  29,307 
Commitments and contingencies (note 8)
Stockholders' equity:
Common stock, $0.01 par value; 600 shares authorized; shares issued and outstanding: September 30, 2021—432 and December 31, 2020—431
Additional paid-in capital 17,982  17,933 
Accumulated other comprehensive income (loss) (3) (4)
Dividends/distributions in excess of earnings (9,467) (8,472)
Total equity 8,516  9,461 
Total liabilities and equity $ 39,004  $ 38,768 

See notes to condensed consolidated financial statements.
3

CROWN CASTLE INTERNATIONAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS) (Unaudited)
(Amounts in millions, except per share amounts)
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
Net revenues:
Site rental $ 1,451  $ 1,339  $ 4,245  $ 3,968 
Services and other 167  147  441  379 
Net revenues 1,618  1,486  4,686  4,347 
Operating expenses:
Costs of operations(a):
Site rental 397  370  1,168  1,123 
Services and other 115  117  301  324 
Selling, general and administrative 167  154  500  493 
Asset write-down charges —  10 
Acquisition and integration costs — 
Depreciation, amortization and accretion 413  406  1,229  1,207 
Total operating expenses 1,092  1,052  3,208  3,166 
Operating income (loss) 526  434  1,478  1,181 
Interest expense and amortization of deferred financing costs (163) (168) (493) (521)
Gains (losses) on retirement of long-term obligations (1) (95) (145) (95)
Interest income —  — 
Other income (expense) (4) (3) (16) (3)
Income (loss) before income taxes 358  168  825  564 
Benefit (provision) for income taxes (7) (5) (20) (16)
Income (loss) from continuing operations 351  163  805  548 
Discontinued operations (see note 6):
Net gain (loss) from disposal of discontinued operations, net of tax —  —  (62) — 
Income (loss) from discontinued operations, net of tax —  —  (62) — 
Net income (loss) attributable to CCIC stockholders 351  163  743  548 
Dividends/distributions on preferred stock —  —  —  (57)
Net income (loss) attributable to CCIC common stockholders
$ 351  $ 163  $ 743  $ 491 
Net income (loss) $ 351  $ 163  $ 743  $ 548 
Other comprehensive income (loss):
Foreign currency translation adjustments (1)
Total other comprehensive income (loss) (1)
Comprehensive income (loss) attributable to CCIC stockholders $ 350  $ 165  $ 744  $ 549 
Net income (loss) attributable to CCIC common stockholders, per common share:
Income (loss) from continuing operations, basic $ 0.81  $ 0.38  $ 1.86  $ 1.17 
Income (loss) from discontinued operations, basic —  —  (0.14) — 
Net income (loss) attributable to CCIC common stockholders—basic $ 0.81  $ 0.38  $ 1.72  $ 1.17 
Income (loss) from continuing operations, diluted $ 0.81  $ 0.38  $ 1.85  $ 1.17 
Income (loss) from discontinued operations, diluted —  —  (0.14) — 
Net income (loss) attributable to CCIC common stockholders—diluted $ 0.81  $ 0.38  $ 1.71  $ 1.17 
Weighted-average common shares outstanding:
Basic 432 427  432  420 
Diluted 434 429  434  422 
(a)Exclusive of depreciation, amortization and accretion shown separately.

See notes to condensed consolidated financial statements.
4

CROWN CASTLE INTERNATIONAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
(In millions of dollars)
  Nine Months Ended September 30,
  2021 2020
Cash flows from operating activities:    
Income (loss) from continuing operations $ 805  $ 548 
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used for) operating activities:
Depreciation, amortization and accretion 1,229  1,207 
(Gains) losses on retirement of long-term obligations 145  95 
Amortization of deferred financing costs and other non-cash interest, net
Stock-based compensation expense 100  108 
Asset write-down charges 10 
Deferred income tax (benefit) provision
Other non-cash adjustments, net 18 
Changes in assets and liabilities, excluding the effects of acquisitions:
Increase (decrease) in accrued interest (59) (46)
Increase (decrease) in accounts payable 16  (41)
Increase (decrease) in other liabilities
(57) 58 
Decrease (increase) in receivables (62) 141 
Decrease (increase) in other assets
(102) (20)
Net cash provided by (used for) operating activities 2,055  2,070 
Cash flows from investing activities:  
Capital expenditures (892) (1,238)
Payments for acquisitions, net of cash acquired (27) (86)
Other investing activities, net (12)
Net cash provided by (used for) investing activities (911) (1,336)
Cash flows from financing activities:
Proceeds from issuance of long-term debt 3,985  3,733 
Principal payments on debt and other long-term obligations (1,057) (80)
Purchases and redemptions of long-term debt (2,089) (2,490)
Borrowings under revolving credit facility 580  2,140 
Payments under revolving credit facility (870) (2,145)
Net issuances (repayments) under commercial paper program 380  (80)
Payments for financing costs (43) (38)
Purchases of common stock (69) (75)
Dividends/distributions paid on common stock (1,738) (1,531)
Dividends/distributions paid on preferred stock —  (85)
Net cash provided by (used for) financing activities (921) (651)
Net increase (decrease) in cash, cash equivalents, and restricted cash - continuing operations 223  83 
Discontinued operations (see note 6):
Net cash provided by (used for) operating activities (62) — 
Net increase (decrease) in cash, cash equivalents, and restricted cash - discontinued operations (62) — 
Effect of exchange rate changes —  — 
Cash, cash equivalents, and restricted cash at beginning of period 381  338 
Cash, cash equivalents, and restricted cash at end of period $ 542  $ 421 

See notes to condensed consolidated financial statements.
5

CROWN CASTLE INTERNATIONAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EQUITY
(Amounts in millions) (Unaudited)
Common Stock 6.875% Mandatory Convertible Preferred Stock Accumulated Other Comprehensive Income (Loss) ("AOCI")
Shares ($0.01 Par) Shares ($0.01 Par) Additional
paid-in
capital
Foreign Currency Translation Adjustments Dividends/Distributions in Excess of Earnings Total
Balance, June 30, 2021 432  $ —  $ —  $ 17,951  $ (2) $ (9,240) $ 8,713 
Stock-based compensation related activity, net of forfeitures
—  —  —  —  32  —  —  32 
Purchases and retirement of common stock
—  —  —  —  (1) —  —  (1)
Other comprehensive income (loss)(a)
—  —  —  —  —  (1) —  (1)
Common stock dividends/distributions(b)
—  —  —  —  —  —  (578) (578)
Net income (loss) —  —  —  —  —  —  351  351 
Balance, September 30, 2021 432  $ —  $ —  $ 17,982  $ (3) $ (9,467) $ 8,516 


Common Stock 6.875% Mandatory Convertible Preferred Stock AOCI
Shares ($0.01 Par) Shares ($0.01 Par) Additional
paid-in
capital
Foreign Currency Translation Adjustments Dividends/Distributions in Excess of Earnings Total
Balance, June 30, 2020 417  $ $ —  $ 17,872  $ (6) $ (8,044) $ 9,826 
Stock-based compensation related activity, net of forfeitures
—  —  —  —  33  —  —  33 
Purchases and retirement of common stock
—  —  —  —  (1) —  —  (1)
Other comprehensive income (loss)(a)
—  —  —  —  —  — 
Common stock dividends/distributions(b)
—  —  —  —  —  —  (521) (521)
Conversion of preferred stock to common stock 14  —  (2) —  —  —  —  — 
Net income (loss) —  —  —  —  —  —  163  163 
Balance, September 30, 2020 431  $ —  $ —  $ 17,904  $ (4) $ (8,402) $ 9,502 
(a)See the condensed consolidated statement of operations and other comprehensive income (loss) for the components of other comprehensive income (loss).
(b)See note 7 for information regarding common and preferred stock dividends declared per share.

6

CROWN CASTLE INTERNATIONAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EQUITY
(Amounts in millions) (Unaudited)
Common Stock 6.875% Mandatory Convertible Preferred Stock AOCI
Shares ($0.01 Par) Shares ($0.01 Par) Additional
paid-in
capital
Foreign Currency Translation Adjustments Dividends/Distributions in Excess of Earnings Total
Balance, December 31, 2020 431  $ —  $ —  $ 17,933  $ (4) $ (8,472) $ 9,461 
Stock-based compensation related activity, net of forfeitures
—  —  —  118  —  —  118 
Purchases and retirement of common stock
—  —  —  —  (69) —  —  (69)
Other comprehensive income (loss)(a)
—  —  —  —  —  — 
Common stock dividends/distributions(b)
—  —  —  —  —  —  (1,738) (1,738)
Net income (loss) —  —  —  —  —  —  743  743 
Balance, September 30, 2021 432  $ —  $ —  $ 17,982  $ (3) $ (9,467) $ 8,516 


Common Stock 6.875% Mandatory Convertible Preferred Stock AOCI
Shares ($0.01 Par) Shares ($0.01 Par) Additional
paid-in
capital
Foreign Currency Translation Adjustments Dividends/Distributions in Excess of Earnings Total
Balance, December 31, 2019 416  $ $ —  $ 17,855  $ (5) $ (7,365) $ 10,489 
Stock-based compensation related activity, net of forfeitures
—  —  —  124  —  —  124 
Purchases and retirement of common stock
—  —  —  —  (75) —  —  (75)
Other comprehensive income (loss)(b)
—  —  —  —  —  — 
Common stock dividends/distributions(b)
—  —  —  —  —  —  (1,528) (1,528)
Preferred stock dividends/distributions(b)
—  —  —  —  —  —  (57) (57)
Conversion of preferred stock to common stock 14  —  (2) —  —  —  —  — 
Net income (loss) —  —  —  —  —  —  548  548 
Balance, September 30, 2020 431  $ —  $ —  $ 17,904  $ (4) $ (8,402) $ 9,502 
(a)See the condensed consolidated statement of operations and other comprehensive income (loss) for the components of other comprehensive income (loss).
(b)See note 7 for information regarding common and preferred stock dividends declared per share.

7

CROWN CASTLE INTERNATIONAL CORP. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-Unaudited
(Tabular dollars in millions, except per share amounts)

1.General
The information contained in the following notes to the condensed consolidated financial statements is condensed from that which would appear in the annual consolidated financial statements; accordingly, the condensed consolidated financial statements included herein should be reviewed in conjunction with the consolidated financial statements for the fiscal year ended December 31, 2020, and related notes thereto, included in the 2020 Form 10-K filed by Crown Castle International Corp. ("CCIC") with the SEC. Capitalized terms used but not defined in these notes to the condensed consolidated financial statements have the same meaning given to them in the 2020 Form 10-K. References to the "Company" refer to CCIC and its predecessor, as applicable, and their subsidiaries, unless otherwise indicated or the context indicates otherwise. As used herein, the term "including," and any variation thereof means "including without limitation." The use of the word "or" herein is not exclusive. Unless the context suggests otherwise, references to "U.S." are to the United States of America and Puerto Rico, collectively.
The Company owns, operates and leases shared communications infrastructure that is geographically dispersed throughout the U.S., including (1) towers and other structures, such as rooftops (collectively, "towers"), and (2) fiber primarily supporting small cell networks ("small cells") and fiber solutions. The Company's towers, fiber and small cells assets are collectively referred to herein as "communications infrastructure," and the Company's customers on its communications infrastructure are referred to herein as "tenants."
The Company's core business is providing access, including space or capacity, to its shared communications infrastructure via long-term contracts in various forms, including lease, license, sublease and service agreements (collectively, "tenant contracts").
The Company's operating segments consist of (1) Towers and (2) Fiber. See note 10.
As part of the Company's effort to provide comprehensive communications infrastructure solutions, as an ancillary business, the Company also offers certain services primarily relating to its Towers segment, predominately consisting of (1) site development services primarily relating to existing or new tenant equipment installations, including: site acquisition, architectural and engineering, or zoning and permitting (collectively, "site development services") and (2) tenant equipment installation or subsequent augmentations (collectively, "installation services").
The Company operates as a REIT for U.S. federal income tax purposes. In addition, the Company has certain taxable REIT subsidiaries ("TRSs"). See note 6.
Approximately 53% of the Company's towers are leased or subleased or operated and managed under master leases, subleases, and other agreements with AT&T and T-Mobile, including agreements assumed by T-Mobile following its merger with Sprint, completed on April 1, 2020. The Company has the option to purchase these towers at the end of their respective lease terms. The Company has no obligation to exercise such purchase options.
Basis of Presentation
The condensed consolidated financial statements included herein are unaudited; however, they include all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to state fairly the consolidated financial position of the Company at September 30, 2021, the condensed consolidated results of operations for the three and nine months ended September 30, 2021 and 2020, and the condensed consolidated cash flows for the nine months ended September 30, 2021 and 2020. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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2.Summary of Significant Accounting Policies
Recently Adopted Accounting Pronouncements
No accounting pronouncements adopted during the nine months ended September 30, 2021 had a material impact on the Company's condensed consolidated financial statements.
Recent Accounting Pronouncements Not Yet Adopted
No new accounting pronouncements issued but not yet adopted are expected to have a material impact on the Company's condensed consolidated financial statements.

3.Revenues
Site rental revenues
The Company generates site rental revenues from its core business by providing tenants with access, including space or capacity, to its shared communications infrastructure via long-term tenant contracts in various forms, including lease, license, sublease and service agreements. Providing such access over the length of the tenant contract term represents the Company’s sole performance obligation under its tenant contracts.
Site rental revenues from the Company's tenant contracts are recognized on a straight-line, ratable basis over the fixed, non-cancelable term of the relevant tenant contract, which generally ranges from five to 15 years for wireless tenants and three to 20 years for the Company's fiber solutions tenants (including from organizations with high-bandwidth and multi-location demands), regardless of whether the payments from the tenant are received in equal monthly amounts during the life of the tenant contract. Certain of the Company's tenant contracts contain (1) fixed escalation clauses (such as fixed dollar or fixed percentage increases) or inflation-based escalation clauses (such as those tied to the CPI), (2) multiple renewal periods exercisable at the tenant's option and (3) only limited termination rights at the applicable tenant's option through the current term. If the payment terms call for fixed escalations, upfront payments, or rent-free periods, the revenue is recognized on a straight-line basis over the fixed, non-cancelable term of the agreement. When calculating straight-line rental revenues, the Company considers all fixed elements of tenant contractual escalation provisions, even if such escalation provisions contain a variable element in addition to a minimum. The Company's assets related to straight-line site rental revenues include current amounts of $125 million included in "Other current assets" and non-current amounts of $1.5 billion included in "Deferred site rental receivables" as of September 30, 2021. Amounts billed or received prior to being earned are deferred and reflected in "Deferred revenues" and "Other long-term liabilities." Amounts to which the Company has an unconditional right to payment, which are related to both satisfied or partially satisfied performance obligations, are recorded within "Receivables, net" on the Company's condensed consolidated balance sheet.
Services and other revenues
As part of the Company’s effort to provide comprehensive communications infrastructure solutions, as an ancillary business, the Company offers certain services primarily relating to its Towers segment, predominately consisting of (1) site development services and (2) installation services. Upon contract commencement, the Company assesses its services to tenants and identifies performance obligations for each promise to provide a distinct service.
The Company may have multiple performance obligations for site development services, which primarily include: structural analysis, zoning, permitting and construction drawings. For each of the above performance obligations, services revenues are recognized at completion of the applicable performance obligation, which represents the point at which the Company believes it has transferred goods or services to the tenant. The revenue recognized is based on an allocation of the transaction price among the performance obligations in a respective contract based on estimated standalone selling price. The volume and mix of site development services may vary among contracts and may include a combination of some or all of the above performance obligations. Payments generally are due within 45 to 60 days and generally do not contain variable-consideration provisions. The transaction price for the Company's tower installation services consists of amounts for (1) permanent improvements to the Company's towers that represent a lease component and (2) the performance of the service. Amounts under the Company's tower installation service agreements that represent a lease component are recognized as site rental revenues on a straight-line basis over the length of the associated estimated lease term. For the performance of the installation service, the Company has one performance obligation, which is satisfied at the time of the applicable installation or augmentation and recognized as services and other revenues. Since performance obligations are typically satisfied prior to
9


receiving payment from tenants, the unconditional right to payment is recorded within "Receivables, net" on the Company’s condensed consolidated balance sheet. The vast majority of the Company’s services generally have a duration of one year or less.
Additional information on revenues
As of January 1, 2021 and September 30, 2021, $2.8 billion and $2.7 billion of unrecognized revenue was reported in "Deferred revenues" and "Other long-term liabilities" on our condensed consolidated balance sheet, respectively. During the nine months ended September 30, 2021, approximately $455 million of the January 1, 2021 unrecognized revenue balance was recognized as revenue. During the nine months ended September 30, 2020, approximately $440 million of the January 1, 2020 unrecognized revenue balance was recognized as revenue.
The following table is a summary of the non-cancelable contracted amounts owed to the Company by tenants pursuant to tenant contracts in effect as of September 30, 2021.
Three Months Ending December 31, Years Ending December 31,
2021 2022 2023 2024 2025 Thereafter Total
Contracted amounts(a)
$ 1,149  $ 4,472  $ 3,937  $ 3,426  $ 3,295  $ 15,576  $ 31,855 
(a)Based on the nature of the contract, tenant contracts are accounted for pursuant to relevant lease accounting (ASC 842) or revenue accounting (ASC 606) guidance. Excludes amounts related to services, as those contracts generally have a duration of one year or less.
See note 10 for further information regarding the Company's operating segments.

10


4.Debt and Other Obligations
The table below sets forth the Company's debt and other obligations as of September 30, 2021.
Original
Issue Date
Final
Maturity
Date(a)
Balance as of
September 30, 2021
Balance as of
December 31, 2020
Stated Interest
Rate as of
September 30, 2021(a)
3.849% Secured Notes Dec. 2012 Apr. 2023 $ 998  $ 997  3.9  %
Secured Notes, Series 2009-1, Class A-2
July 2009 Aug. 2029 55  60  9.0  %
Tower Revenue Notes, Series 2015-1 May 2015 May 2042
(h)
—  299  N/A
Tower Revenue Notes, Series 2018-1 July 2018 July 2043
(b)
249  248  3.7  %
Tower Revenue Notes, Series 2015-2 May 2015 May 2045
(b)
696  695  3.7  %
Tower Revenue Notes, Series 2018-2 July 2018 July 2048
(b)
744  743  4.2  %
Finance leases and other obligations
Various Various
(c)
240  236  Various
(c)
Total secured debt
$ 2,982  $ 3,278 
2016 Revolver Jan. 2016 June 2026
(i)
$ — 
(d)
$ 290  N/A
(e)
2016 Term Loan A Jan. 2016 June 2026
(g)(i)
1,230  2,252  1.2  %
(e)
Commercial Paper Notes Sep. 2021
(f)
Oct. 2021
(f)(g)(h)
665 
(f)
285  0.3  %
5.250% Senior Notes Oct. 2012 Jan. 2023
(g)
—  1,646  N/A
3.150% Senior Notes Jan. 2018 July 2023 747  746  3.2  %
3.200% Senior Notes Aug. 2017 Sept. 2024 746  745  3.2  %
1.350% Senior Notes June 2020 July 2025 495  494  1.4  %
4.450% Senior Notes Feb. 2016 Feb. 2026 895  894  4.5  %
3.700% Senior Notes May 2016 June 2026 746  745  3.7  %
1.050% Senior Notes Feb. 2021 July 2026
(g)
990  —  1.1  %
4.000% Senior Notes Feb. 2017 Mar. 2027 496  496  4.0  %
3.650% Senior Notes Aug. 2017 Sept. 2027 994  994  3.7  %
3.800% Senior Notes Jan. 2018 Feb. 2028 992  991  3.8  %
4.300% Senior Notes Feb. 2019 Feb. 2029 593  593  4.3  %
3.100% Senior Notes Aug. 2019 Nov. 2029 545  544  3.1  %
3.300% Senior Notes Apr. 2020 July 2030 738  737  3.3  %
2.250% Senior Notes June 2020 Jan. 2031 1,089  1,088  2.3  %
2.100% Senior Notes Feb. 2021 Apr. 2031
(g)
987  —  2.1  %
2.500% Senior Notes June 2021 July 2031
(h)
739  —  2.5  %
2.900% Senior Notes Feb. 2021 Apr. 2041
(g)
1,232  —  2.9  %
4.750% Senior Notes May 2017 May 2047 344  344  4.8  %
5.200% Senior Notes Feb. 2019 Feb. 2049 395  395  5.2  %
4.000% Senior Notes Aug. 2019 Nov. 2049 345  345  4.0  %
4.150% Senior Notes Apr. 2020 July 2050 490  489  4.2  %
3.250% Senior Notes June 2020 Jan. 2051 890  889  3.3  %
Total unsecured debt
$ 17,383  $ 16,002 
Total debt and other obligations 20,365  19,280 
Less: current maturities and short-term debt and other current obligations
72  129 
Non-current portion of long-term debt and other long-term obligations
$ 20,293  $ 19,151 
(a)See the 2020 Form 10-K, including note 7, for additional information regarding the maturity and principal amortization provisions and interest rates relating to the Company's indebtedness.
(b)If the respective series of Tower Revenue Notes are not paid in full on or prior to an applicable anticipated repayment date, then Excess Cash Flow (as defined in the indenture) of the issuers of such notes will be used to repay principal of the applicable series and class of the Tower Revenue Notes, and additional interest (of an additional approximately 5% per annum) will accrue on the respective Tower Revenue Notes. As of September 30, 2021, the Tower Revenue Notes have principal amounts of $250 million, $700 million and $750 million, with anticipated repayment dates in 2023, 2025 and 2028, respectively.
(c)The Company's finance leases and other obligations relate to land, fiber, vehicles, and other assets and bear interest rates ranging up to 10% and mature in periods ranging from less than one year to approximately 25 years.
(d)As of September 30, 2021, the undrawn availability under the 2016 Revolver was $5.0 billion.
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(e)Both the 2016 Revolver and 2016 Term Loan A bear interest, at our option, at either (1) LIBOR plus a credit spread ranging from 0.875% to 1.750% per annum or (2) an alternate base rate plus a credit spread ranging from 0.000% to 0.750% per annum, in each case, with the applicable credit spread based on the Company's senior unsecured debt rating. The Company pays a commitment fee ranging from 0.080% to 0.300%, based on the Company's senior unsecured debt rating, per annum on the undrawn available amount under the 2016 Revolver. See note (i) for information regarding (1) potential adjustments to such percentages and (2) LIBOR transition provisions.
(f)Notes under the CP Program may be issued, repaid and re-issued from time to time, with an aggregate principal amount of Commercial Paper Notes outstanding under the CP Program at any time not to exceed $1.0 billion. The net proceeds of the Commercial Paper Notes are expected to be used for general corporate purposes. The maturities of the Commercial Paper Notes, when outstanding, may vary but may not exceed 397 days from the date of issue. The Commercial Paper Notes are issued under customary terms in the commercial paper market and are issued at a discount from par or, alternatively, can be issued at par and bear varying interest rates on a fixed or floating basis. As of September 30, 2021, the Company had net issuances of $665 million under the CP Program. At any point in time, the Company intends to maintain available commitments under its 2016 Revolver in an amount at least equal to the amount of Commercial Paper Notes outstanding. While any outstanding Commercial Paper Notes generally have short-term maturities, the Company classifies the outstanding issuances, when applicable, as long-term based on its ability and intent to refinance the outstanding issuances on a long-term basis.
(g)In February 2021, the Company issued $3.25 billion aggregate principal amount of senior unsecured notes ("February 2021 Senior Notes"), which consisted of (1) $1.0 billion aggregate principal amount of 1.050% senior unsecured notes due July 2026, (2) $1.0 billion aggregate principal amount of 2.100% senior unsecured notes due April 2031 and (3) $1.25 billion aggregate principal amount of 2.900% senior unsecured notes due April 2041. The Company used the net proceeds from the February 2021 Senior Notes offering to (1) redeem all of the outstanding 5.250% Senior Notes, (2) repay a portion of the outstanding Commercial Paper Notes and (3) repay a portion of outstanding borrowings under the 2016 Term Loan A.
(h)In June 2021, the Company issued $750 million aggregate principal amount of 2.500% senior unsecured notes due July 2031 ("June 2021 Senior Notes"). In June 2021, the Company used a portion of the net proceeds from the June 2021 Senior Notes offering (1) to repay outstanding Commercial Paper Notes and (2) for general corporate purposes. In July 2021, the Company used a portion of the net proceeds to repay in full the previously outstanding Tower Revenue Notes, Series 2015-1.
(i)In June 2021, the Company entered into an amendment to the Credit Facility that provided for, among other things, (1) the extension of the maturity date of the Credit Facility from June 2024 to June 2026, (2) reductions to the interest rate spread and unused commitment fee percentage upon meeting specified annual sustainability targets and increases to the interest rate spread and unused commitment fee percentage upon the failure to meet specified annual sustainability thresholds and (3) the inclusion of "hardwired" LIBOR transition provisions consistent with those published by the Alternative Reference Rate Committee. With respect to the specified annual sustainability targets, the applicable interest rate spread is subject to an upward or downward adjustment of up to 0.05% and the unused commitment fee is subject to an upward or downward revision of up to 0.01% if the Company achieves, or fails to achieve, certain specified targets.
Scheduled Principal Payments and Final Maturities
The following are the scheduled principal payments and final maturities of the total debt and other long-term obligations of the Company outstanding as of September 30, 2021, which do not consider the principal payments that will commence following the anticipated repayment dates on the Tower Revenue Notes.
  Three Months Ending
December 31,
Years Ending December 31, Unamortized Adjustments, Net Total Debt and Other Obligations Outstanding
  2021 2022 2023 2024 2025 Thereafter Total Cash Obligations
Scheduled principal payments and
final maturities
$ 687 
(a)
$ 71  $ 1,839  $ 843  $ 636  $ 16,464  $ 20,540  $ (175) $ 20,365 
(a)Predominately consists of outstanding indebtedness under the CP Program. Such amounts may be issued, repaid or re-issued from time to time.
Purchases and Redemptions of Long-Term Debt
The following is a summary of purchases and redemptions of long-term debt during the nine months ended September 30, 2021.
Principal Amount
Cash Paid(a)
Gains (Losses)(b)
5.250% Senior Notes $ 1,650  $ 1,789  $ (143)
2016 Term Loan A —  —  (1)
Tower Revenue Notes - Series 2015-1 $ 300  $ 300  $ (1)
Total $ 1,950  $ 2,089  $ (145)
(a)Exclusive of accrued interest.
(b)Inclusive of the write off of respective deferred financing costs.
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Interest Expense and Amortization of Deferred Financing Costs
The components of interest expense and amortization of deferred financing costs are as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
Interest expense on debt obligations $ 160  $ 167  $ 484  $ 517 
Amortization of deferred financing costs and adjustments on long-term debt 19  17 
Capitalized interest (3) (5) (10) (13)
Total $ 163  $ 168  $ 493  $ 521 

5.Fair Value Disclosures
Level in Fair Value Hierarchy September 30, 2021 December 31, 2020
Carrying
 Amount
Fair
Value
Carrying
 Amount
Fair
Value
Assets:
Cash and cash equivalents 1 $ 357  $ 357  $ 232  $ 232 
Restricted cash, current and non-current 1 185  185  149  149 
Liabilities:
Total debt and other obligations 2 20,365  21,521  19,280  21,302 
The fair value of cash and cash equivalents and restricted cash approximate the carrying value. The Company determines the fair value of its debt securities based on indicative, non-binding quotes from brokers. Quotes from brokers require judgment and are based on the brokers' interpretation of market information, including implied credit spreads for similar borrowings on recent trades or bid/ask prices or quotes from active markets if available. Since December 31, 2020, there have been no changes in the Company's valuation techniques used to measure fair values.

6.Income Taxes
The Company operates as a REIT for U.S. federal income tax purposes. As a REIT, the Company is generally entitled to a deduction for dividends that it pays and therefore is not subject to U.S. federal corporate income tax on its net taxable income that is currently distributed to its stockholders. The Company also may be subject to certain federal, state, local and foreign taxes on its income and assets, including (1) taxes on any undistributed income, (2) taxes related to the TRSs, (3) franchise taxes, (4) property taxes, and (5) transfer taxes. In addition, the Company could under certain circumstances be required to pay an excise or penalty tax, which could be significant in amount, in order to utilize one or more relief provisions under the Internal Revenue Code of 1986, as amended, to maintain qualification for taxation as a REIT.
The Company's TRS assets and operations will continue to be subject, as applicable, to federal and state corporate income taxes or to foreign taxes in the jurisdictions in which such assets and operations are located. The Company's foreign assets and operations (including its tower operations in Puerto Rico) are subject to foreign income taxes in the jurisdictions in which such assets and operations are located, regardless of whether they are included in a TRS or not.
For the nine months ended September 30, 2021 and 2020, the Company's effective tax rate differed from the federal statutory rate predominately due to the Company's REIT status, including the dividends paid deduction.
On April 26, 2021, the Company entered into an agreement in principle with the ATO to pay approximately $63 million (A$83 million) to settle the previously disclosed outstanding audit of the Australian tax consequences of the Company’s 2015 sale of Crown Castle Australia Holdings Pty Ltd ("CCAL"), formerly a 77.6% owned Australian subsidiary of the Company ("ATO Settlement"). The sale of CCAL generated approximately $1.2 billion in net proceeds to the Company, and resulted in a gain from the disposal of discontinued operations of $979 million for the year ended December 31, 2015.
The Company previously recognized the ATO Settlement as a charge within discontinued operations in its condensed consolidated statement of operations and comprehensive income (loss) for the three months ended March 31, 2021, as this
13


amount represented a reduction to the gain from the disposal of discontinued operations previously reported during the year ended December 31, 2015.
On June 16, 2021, the Company entered into a definitive settlement agreement with the ATO evidencing the ATO Settlement. On July 1, 2021, the Company paid approximately $62 million (A$83 million), based on the exchange rate in effect on that date, pursuant to the ATO Settlement, which is reflected within discontinued operations on the Company's consolidated statement of cash flows for the nine months ended September 30, 2021.

7.Per Share Information
Basic net income (loss) attributable to CCIC common stockholders, per common share, excludes dilution and is computed by dividing net income (loss) attributable to CCIC common stockholders by the weighted-average number of common shares outstanding during the period. For the three and nine months ended September 30, 2021 and 2020, diluted net income (loss) attributable to CCIC common stockholders, per common share, is computed by dividing net income (loss) attributable to CCIC common stockholders by the weighted-average number of common shares outstanding during the period, plus any potential dilutive common share equivalents, including shares issuable upon (1) the vesting of restricted stock units as determined under the treasury stock method and (2) conversion of the Company's previously outstanding 6.875% Mandatory Convertible Preferred Stock, as applicable, as determined under the if-converted method.
  Three Months Ended September 30, Nine Months Ended September 30,
  2021 2020 2021 2020
Income (loss) from continuing operations $ 351  $ 163  $ 805  $ 548 
Dividends on preferred stock —    —  —  (57)
Income (loss) from continuing operations attributable to CCIC common stockholders for basic and diluted computations $ 351    $ 163  $ 805  $ 491 
Income (loss) from discontinued operations, net of tax $ —  $ —  $ (62) $ — 
Net income (loss) attributable to CCIC common stockholders $ 351  $ 163  $ 743  $ 491 
Weighted-average number of common shares outstanding (in millions):
Basic weighted-average number of common stock outstanding 432  427  432  420 
Effect of assumed dilution from potential issuance of common shares relating to restricted stock units
Diluted weighted-average number of common shares outstanding 434  429  434  422 
Net income (loss) attributable to CCIC common stockholders, per common share:
Income (loss) from continuing operations, basic $ 0.81  $ 0.38  $ 1.86  $ 1.17 
Income (loss) from discontinued operations, basic —  —  (0.14) — 
Net income (loss) attributable to CCIC common stockholders—basic $ 0.81  $ 0.38  $ 1.72  $ 1.17 
Income (loss) from continuing operations, diluted $ 0.81  $ 0.38  $ 1.85  $ 1.17 
Income (loss) from discontinued operations, diluted —  —  (0.14) — 
Net income (loss) attributable to CCIC common stockholders—diluted $ 0.81  $ 0.38  $ 1.71  $ 1.17 
Dividends/distributions declared per share of common stock $ 1.33  $ 1.20  $ 3.99  $ 3.60 
Dividends/distributions declared per share of preferred stock $ —  $ —  $ —  $ 34.3750 
During the nine months ended September 30, 2021, the Company granted one million restricted stock units to the Company's executives and certain other employees pursuant to its 2013 Long-Term Incentive Plan.


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8.Commitments and Contingencies
Shareholder Litigation
As previously disclosed, securities class action suits were filed in 2020 against the Company and certain of its current officers, which suits were dismissed without prejudice in June 2021. Also in 2020, derivative lawsuits were filed in the United States District Court for the District of Delaware against the Company's then-current directors, certain of its current officers, and the Company as a nominal defendant. Each complaint alleged, among other things, breaches of fiduciary duties, waste of corporate assets, unjust enrichment, and false or misleading statements. The derivative plaintiffs sought, among other things, unspecified monetary damages, costs and expenses, restitution from the defendants, and an order requiring the Company to implement certain corporate governance reforms. As a nominal defendant, no monetary relief was sought against the Company itself. In June 2020, the derivative lawsuits were consolidated as In re Crown Castle International Corp. Derivative Litigation, C.A. No. 20-00606-MN in the United States District Court for the District of Delaware. On July 27, 2021, the plaintiffs in the consolidated case filed a notice of voluntary dismissal of the lawsuit without prejudice, and on that same day, the court entered an order effectuating that dismissal.
Durham Lawsuits
The Company has received notices of claims and has been named as one of several defendants in lawsuits stemming from an April 2019 gas leak explosion in Durham, North Carolina, which occurred near an area where the Company's subcontractors were installing fiber. The explosion resulted in two fatalities, physical injuries (some of which were serious), and property damage to surrounding buildings and businesses. Currently, the Company is unable to determine the likelihood of an outcome or estimate a range of possible losses, if any, related to these lawsuits.
New York State Department of Transportation
In 2019, the State of New York passed legislation authorizing the Department of Transportation ("NYSDOT") to enter into agreements with any fiber provider for the use and occupancy of the state right-of-way for fiber optic lines. The legislation authorizes the NYSDOT to charge a fee of up to fair market value for such use and occupancy. To date, the Company has paid fees relating to newly deployed fiber lines but has not been required to pay, and has not recognized any costs in connection with, any fees relating to previously deployed fiber lines.
The Company believes that the legislation violates both federal and state law and is evaluating its legal options regarding any use and occupancy fees that may be assessed on previously deployed fiber. Currently, the Company is unable to determine the likelihood of an outcome or reasonably estimate the amount of fees, if any, that it may be required to pay as a result of the legislation.
Other Matters
The Company is involved in various other claims, assessments, lawsuits or proceedings arising in the ordinary course of business. While there are uncertainties inherent in the ultimate outcome of such other matters and it is impossible to presently determine the ultimate costs or losses that may be incurred, if any, management believes the adverse resolution of such uncertainties and the incurrence of such costs should not have a material adverse effect on the Company's condensed consolidated financial position or results of operations. Additionally, the Company and certain of its subsidiaries are contingently liable for commitments or performance guarantees arising in the ordinary course of business, including certain letters of credit or surety bonds. In addition, see note 1 for a discussion of the Company's option to purchase approximately 53% of its towers at the end of their respective lease terms. The Company has no obligation to exercise such purchase options.

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9.Equity
Declaration and Payment of Dividends
During the nine months ended September 30, 2021, the following dividends/distributions were declared or paid:
Equity Type Declaration Date Record Date Payment Date Dividends Per Share
Aggregate
Payment
Amount(a)
Common Stock February 18, 2021 March 15, 2021 March 31, 2021 $ 1.33  $ 581 
Common Stock May 21, 2021 June 14, 2021 June 30, 2021 $ 1.33  $ 579 
Common Stock August 5, 2021 September 15, 2021 September 30, 2021 $ 1.33  $ 578 
(a)Inclusive of dividends accrued for holders of unvested restricted stock units, which will be paid when and if the restricted stock units vest.
See also note 12 for a discussion of the Company's common stock dividend declared in October 2021.
Purchases of the Company's Common Stock
For the nine months ended September 30, 2021, the Company purchased 0.4 million shares of its common stock utilizing $69 million in cash. The shares of common stock purchased relate to shares withheld in connection with the payment of withholding taxes upon vesting of restricted stock units.
2018 "At-the-Market" Stock Offering Program
The Company previously maintained an "at-the-market" stock offering program through which it had the right to issue and sell shares of its common stock having an aggregate gross sales price of up to $750 million ("2018 ATM Program"). The Company terminated its previously outstanding 2018 ATM Program in March 2021 with the entire gross sales price of $750 million remaining unsold.
2021 "At-the-Market" Stock Offering Program
In March 2021, the Company established a new "at-the-market" stock offering program through which it may issue and sell shares of its common stock having an aggregate gross sales price of up to $750 million ("2021 ATM Program"). Sales under the 2021 ATM Program may be made by means of ordinary brokers' transactions on the NYSE or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or, subject to the Company's specific instructions, at negotiated prices. The Company intends to use the net proceeds from any sales under the 2021 ATM Program for general corporate purposes, which may include (1) the funding of future acquisitions or investments or (2) the repayment or repurchase of any outstanding indebtedness. The Company has not sold any shares of common stock under the 2021 ATM Program.

10.Operating Segments
The Company's operating segments consist of (1) Towers and (2) Fiber. The Towers segment provides access, including space or capacity, to the Company's approximately 40,000 towers geographically dispersed throughout the U.S. The Towers segment also reflects certain ancillary services relating to the Company's towers, predominately consisting of site development services and installation services. The Fiber segment provides access, including space or capacity, to the Company's approximately 80,000 route miles of fiber primarily supporting small cell networks and fiber solutions geographically dispersed throughout the U.S.
The measurements of profit or loss used by the Company's chief operating decision maker ("CODM") to evaluate the performance of its operating segments are (1) segment site rental gross margin, (2) segment services and other gross margin and (3) segment operating profit. The Company defines segment site rental gross margin as segment site rental revenues less segment site rental cost of operations, which excludes stock-based compensation expense and prepaid lease purchase price adjustments recorded in consolidated cost of operations. The Company defines segment services and other gross margin as segment services and other revenues less segment services and other cost of operations, which excludes stock-based compensation expense recorded in consolidated cost of operations. The Company defines segment operating profit as segment site rental gross margin plus segment services and other gross margin, and segment other operating (income) expense, less
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selling, general and administrative expenses attributable to the respective segment. All of these measurements of profit or loss are exclusive of depreciation, amortization and accretion, which are shown separately.
The following tables set forth the Company's segment operating results for the three and nine months ended September 30, 2021 and 2020. Costs that are directly attributable to Towers and Fiber are assigned to those respective segments. Additionally, certain costs are shared across segments and are reflected in the Company's segment measures through allocations that management believes to be reasonable. The "Other" column (1) represents amounts excluded from specific segments, such as asset write-down charges, acquisition and integration costs, depreciation, amortization and accretion, amortization of prepaid lease purchase price adjustments, interest expense and amortization of deferred financing costs, gains (losses) on retirement of long-term obligations, net gain (loss) on interest rate swaps, gains (losses) on foreign currency swaps, interest income, other income (expense), income (loss) from discontinued operations, and stock-based compensation expense, and (2) reconciles segment operating profit to income (loss) before income taxes, as the amounts are not utilized in assessing each segment’s performance. The "Other" total assets balance includes corporate assets such as cash and cash equivalents which have not been allocated to specific segments. There are no significant revenues resulting from transactions between the Company's operating segments.
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Three Months Ended September 30, 2021 Three Months Ended September 30, 2020
Towers Fiber Other Consolidated
Total
Towers Fiber Other Consolidated
Total
Segment site rental revenues $ 972  $ 479  $ 1,451  $ 877  $ 462  $ 1,339 
Segment services and other revenues 162  167  142  147 
Segment revenues 1,134  484  1,618  1,019  467  1,486 
Segment site rental cost of operations 227  163  390  216  145  361 
Segment services and other cost of operations 108  112  111  115 
Segment cost of operations(a)(b)
335  167  502  327  149  476 
Segment site rental gross margin 745  316  1,061  661  317  978 
Segment services and other gross margin 54  55  31  32 
Segment selling, general and administrative expenses(b)
27  44  71  22  42  64 
Segment operating profit (loss)
772  273  1,045  670  276  946 
Other selling, general and administrative expenses $ 69  69  $ 63  63 
Stock-based compensation expense 33  33  33  33 
Depreciation, amortization and accretion
413  413  406  406 
Interest expense and amortization of deferred financing costs
163  163  168  168 
Other (income) expenses to reconcile to income (loss) before income taxes(c)
108  108 
Income (loss) before income taxes
$ 358  $ 168 
Capital expenditures $ 46  $ 229  $ $ 283  $ 76  $ 287  $ 14  $ 377 
Total assets (at period end) $ 22,239  $ 15,813  $ 952  $ 39,004  $ 22,248  $ 15,692  $ 846  $ 38,786 
(a)Exclusive of depreciation, amortization and accretion shown separately.
(b)Segment cost of operations excludes (1) stock-based compensation of $6 million in each of the three months ended September 30, 2021 and 2020, respectively, and (2) prepaid lease purchase price adjustments of $4 million and $5 million for the three months ended September 30, 2021 and 2020, respectively. Selling, general and administrative expenses exclude stock-based compensation expense of $27 million in each of the three months ended September 30, 2021 and 2020.
(c)See condensed consolidated statement of operations for further information.

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Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020
Towers Fiber Other Consolidated
Total
Towers Fiber Other Consolidated
Total
Segment site rental revenues $ 2,819  $ 1,426  $ 4,245  $ 2,612  $ 1,356  $ 3,968 
Segment services and other revenues 427  14  441  367  12  379 
Segment revenues 3,246  1,440  4,686  2,979  1,368  4,347 
Segment site rental cost of operations 659  485  1,144  648  447  1,095 
Segment services and other cost of operations 285  10  295  311  319 
Segment cost of operations(a)(b)
944  495  1,439  959  455  1,414 
Segment site rental gross margin 2,160  941  3,101  1,964  909  2,873 
Segment services and other gross margin 142  146  56  60 
Segment selling, general and administrative expenses(b)
78  133  211  71  137  208 
Segment operating profit (loss)
2,224  812  3,036  1,949  776  2,725 
Other selling, general and administrative expenses $ 205  205  $ 198  198 
Stock-based compensation expense 100  100  106  106 
Depreciation, amortization and accretion
1,229  1,229  1,207  1,207 
Interest expense and amortization of deferred financing costs
493  493  521  521 
Other (income) expenses to reconcile to income (loss) before income taxes(c)
184  184  129  129 
Income (loss) before income taxes
$ 825  $ 564 
Capital expenditures $ 160  $ 701  $ 31  $ 892  $ 272  $ 926  $ 40  $ 1,238 
(a)Exclusive of depreciation, amortization and accretion shown separately.
(b)Segment cost of operations excludes (1) stock-based compensation expense of $16 million and $19 million for the nine months ended September 30, 2021 and 2020, respectively, and (2) prepaid lease purchase price adjustments of $14 million in each of the nine months ended September 30, 2021 and 2020. Selling, general and administrative expenses exclude stock-based compensation expense of $84 million and $87 million for the nine months ended September 30, 2021 and 2020, respectively.
(c)See condensed consolidated statement of operations for further information.

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11.Supplemental Cash Flow Information
The following table is a summary of the Company's supplemental cash flow information:
Nine Months Ended September 30,
2021 2020
Supplemental disclosure of cash flow information:    
Cash payments related to operating lease liabilities(a)
$ 414  $ 405 
Interest paid 542  564 
Income taxes paid 17  13 
Supplemental disclosure of non-cash operating, investing and financing activities:
New ROU assets obtained in exchange for operating lease liabilities 456  445 
Increase (decrease) in accounts payable for purchases of property and equipment (13) 30 
Purchase of property and equipment under finance leases and installment purchases 22  23 
(a)Excludes the Company's contingent payments pursuant to operating leases, which are recorded as expense in the period such contingencies are resolved.
The reconciliation of cash, cash equivalents, and restricted cash reported within various lines on the condensed consolidated balance sheet to amounts reported in the condensed consolidated statement of cash flows is shown below.
September 30, 2021 December 31, 2020
Cash and cash equivalents $ 357  $ 232 
Restricted cash, current 180  144 
Restricted cash reported within other assets, net
Cash, cash equivalents and restricted cash $ 542  $ 381 

12.Subsequent Events
Common Stock Dividend
On October 18, 2021, the Company's board of directors declared a quarterly cash dividend of $1.47 per common share. The quarterly dividend will be payable on December 31, 2021 to common stockholders of record as of December 15, 2021.




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ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the response to Part I, Item 1 of this report and the consolidated financial statements of the Company including the related notes and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" ("MD&A") included in the 2020 Form 10-K.

General Overview
Overview
We own, operate and lease shared communications infrastructure that is geographically dispersed throughout the U.S., including approximately (1) 40,000 towers and (2) 80,000 route miles of fiber primarily supporting small cells and fiber solutions.
Our towers have a significant presence in the top 100 basic trading areas ("BTAs"), and the majority of our small cells and fiber is located in major metropolitan areas. Site rental revenues represented 90% of our third quarter 2021 consolidated net revenues. Our Towers segment and Fiber segment accounted for 67% and 33%, respectively, of our third quarter 2021 site rental revenues. Within our Fiber segment, 68% and 32% of our third quarter 2021 Fiber site rental revenues related to fiber solutions and small cells, respectively. See note 10 to our condensed consolidated financial statements. The vast majority of our site rental revenues is of a recurring nature and is subject to long-term tenant contracts with our tenants.
Strategy
As a leading provider of shared communications infrastructure in the U.S., our strategy is to create long-term stockholder value via a combination of (1) growing cash flows generated from our existing portfolio of communications infrastructure, (2) returning a meaningful portion of our cash generated by operating activities to our common stockholders in the form of dividends and (3) investing capital efficiently to grow cash flows and long-term dividends per share. Our strategy is based, in part, on our belief that the U.S. is the most attractive market for shared communications infrastructure investment with the greatest long-term growth potential. We measure our efforts to create "long-term stockholder value" by the combined payment of dividends to stockholders and growth in our per-share results. The key elements of our strategy are to:
Grow cash flows from our existing communications infrastructure. We are focused on maximizing the recurring site rental cash flows generated from providing our tenants with long-term access to our shared infrastructure assets, which we believe is the core driver of value for our stockholders. Tenant additions or modifications of existing tenant equipment (collectively, "tenant additions") enable our tenants to expand coverage and capacity in order to meet increasing demand for data while generating high incremental returns for our business. We believe our product offerings of towers and small cells provide a comprehensive solution to our wireless tenants' growing network needs through our shared communications infrastructure model, which is an efficient and cost-effective way to serve our tenants. Additionally, we believe our ability to share our fiber assets across multiple tenants to deploy both small cells and offer fiber solutions allows us to generate cash flows and increase stockholder return.
Return cash generated by operating activities to common stockholders in the form of dividends. We believe that distributing a meaningful portion of our cash generated by operating activities appropriately provides common stockholders with increased certainty for a portion of expected long-term stockholder value while still allowing us to retain sufficient flexibility to invest in our business and deliver growth. We believe this decision reflects the translation of the high-quality, long-term contractual cash flows of our business into stable capital returns to common stockholders.
Invest capital efficiently to grow cash flows and long-term dividends per share. In addition to adding tenants to existing communications infrastructure, we seek to invest our available capital, including the net cash generated by our operating activities and external financing sources, in a manner that will increase long-term stockholder value on a risk-adjusted basis. These investments include constructing and acquiring new communications infrastructure that we expect will generate future cash flow growth and attractive long-term returns by adding tenants to those assets over time. Our historical investments have included the following (in no particular order):
construction of towers, fiber and small cells;
acquisitions of towers, fiber and small cells;
acquisitions of land interests (which primarily relate to land assets under towers);
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improvements and structural enhancements to our existing communications infrastructure;
purchases of shares of our common stock from time to time; and
purchases, repayments or redemptions of our debt.
Our strategy to create long-term stockholder value is based on our belief that there will be considerable future demand for our communications infrastructure based on the location of our assets and the rapid growth in the demand for data. We believe that such demand for our communications infrastructure will continue, will result in growth of our cash flows due to tenant additions on our existing communications infrastructure, and will create other growth opportunities for us, such as demand for newly constructed or acquired communications infrastructure, as described above. Further, we seek to augment the long-term value creation associated with growing our recurring site rental cash flows by offering certain ancillary site development and installation services within our Towers segment.
Highlights of Business Fundamentals and Results
We operate as a REIT for U.S. federal income tax purposes
As a REIT, we are generally entitled to a deduction for dividends that we pay and therefore are not subject to U.S. federal corporate income tax on our taxable income that is distributed to our stockholders.
To remain qualified and taxed as a REIT, we will generally be required to annually distribute to our stockholders at least 90% of our REIT taxable income, after the utilization of our NOLs (determined without regard to the dividends paid deduction and excluding net capital gain).
See note 6 to our condensed consolidated financial statements for further discussion of our REIT status.
Potential growth resulting from the increasing demand for data
We expect existing and potential new tenant demand for our communications infrastructure will result from (1) new technologies, (2) increased usage of mobile entertainment, mobile internet, and machine-to-machine applications, (3) adoption of other emerging and embedded wireless devices (including smartphones, laptops, tablets, wearables and other devices), (4) increasing smartphone penetration, (5) wireless carrier focus on expanding both network quality and capacity, including the use of both towers and small cells, (6) the adoption of other bandwidth-intensive applications (such as cloud services and video communications), (7) the availability of additional spectrum and (8) increased government initiatives to support connectivity throughout the U.S.
We expect U.S. wireless carriers will continue to focus on improving network quality and expanding capacity (including through 5G initiatives) by utilizing a combination of towers and small cells. We believe our product offerings of towers and small cells provide a comprehensive solution to our wireless tenants' growing communications infrastructure needs.
We expect organizations will continue to increase the usage of high-bandwidth applications that will require the utilization of more fiber infrastructure and fiber solutions, such as those we provide.
Within our Fiber segment, we are able to generate growth and returns for our stockholders by deploying our fiber for both small cells and fiber solutions tenants.
Tenant additions on our existing communications infrastructure are achieved at a low incremental operating cost, delivering high incremental returns.
Substantially all of our communications infrastructure can accommodate additional tenancy, either as currently constructed or with appropriate modifications.
Investing capital efficiently to grow long-term dividends per share (see also "Item 2. MD&A—General Overview—Strategy")
Discretionary capital expenditures of $836 million for the nine months ended September 30, 2021, predominately resulting from the construction of new communications infrastructure and improvements to existing communications infrastructure in order to support additional tenants.
We expect to continue to construct and acquire new communications infrastructure based on our tenants' needs and generate attractive long-term returns by adding additional tenants over time.
Site rental revenues under long-term tenant contracts
Initial terms of five to 15 years for site rental revenues derived from wireless tenants, with contractual escalations and multiple renewal periods, exercisable at the option of the tenant, of five to 10 years each.
Initial terms that generally vary between three to 20 years for site rental revenues derived from our fiber solutions tenants (including from organizations with high-bandwidth and multi-location demands).
Weighted-average remaining term of approximately five years, exclusive of renewals exercisable at the tenants' option, currently representing approximately $32 billion of expected future cash inflows.
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Majority of our revenues from large wireless carriers
Approximately 74% of our site rental revenues were derived from T-Mobile, AT&T and Verizon Wireless for the nine months ended September 30, 2021.
Majority of land under our towers under long-term control
Approximately 90% of our Towers site rental gross margin and approximately 80% of our Towers site rental gross margin is derived from towers located on land that we own or control for greater than 10 and 20 years, respectively. The aforementioned percentages include towers located on land that is owned, including through fee interests and perpetual easements, which represent approximately 40% of our Towers site rental gross margin.
Majority of our fiber assets are located in major metropolitan areas and are on public rights-of-way.
Minimal sustaining capital expenditure requirements
Sustaining capital expenditures represented approximately 1% of net revenues.
Debt portfolio with long-dated maturities extended over multiple years, with the vast majority of such debt having a fixed rate (see note 4 to our condensed consolidated financial statements and "Item 3. Quantitative and Qualitative Disclosures About Market Risk" for a further discussion of our debt)
As of September 30, 2021, our outstanding debt has a weighted-average interest rate of 3.1% and weighted-average maturity of approximately nine years (assuming anticipated repayment dates on our outstanding Tower Revenue Notes).
91% of our debt has fixed rate coupons.
Our debt service coverage and leverage ratios are within their respective financial maintenance covenants.
During 2021, we have completed the following financing activities (see notes 4 and 9 to our condensed consolidated financial statements)
In February 2021, we issued $3.25 billion aggregate principal amount of senior unsecured notes ("February 2021 Senior Notes"), which consisted of (1) $1.0 billion aggregate principal amount of 1.050% senior unsecured notes due July 2026, (2) $1.0 billion aggregate principal amount of 2.100% senior unsecured notes due April 2031 and (3) $1.25 billion aggregate principal amount of 2.900% senior unsecured notes due April 2041. We used the net proceeds from the February 2021 Senior Notes offering to (1) redeem all of the outstanding 5.250% Senior Notes, (2) repay the outstanding Commercial Paper Notes and (3) repay a portion of outstanding borrowings under the 2016 Term Loan A.
In March 2021, we terminated the previously outstanding 2018 ATM Program and established the 2021 ATM Program through which we may issue and sell shares of our common stock having an aggregate gross sales price of up to $750 million.
In June 2021, we issued $750 million aggregate principal amount of 2.500% senior unsecured notes due July 2031 ("June 2021 Senior Notes"). In June 2021, we used a portion of the net proceeds of the June 2021 Senior Notes offering (1) to repay outstanding Commercial Paper Notes and (2) for general corporate purposes. In July 2021, we used a portion of the net proceeds to repay in full the previously outstanding Tower Revenue Notes, Series 2015-1.
In June 2021, we entered into an amendment to the Credit Facility that provided for, among other things, (1) the extension of the maturity date of the Credit Facility from June 2024 to June 2026, (2) reductions to the interest rate spread and unused commitment fee percentage upon meeting specified annual sustainability targets and increases to the interest rate spread and unused commitment fee percentage upon the failure to meet specified annual sustainability thresholds and (3) the inclusion of "hardwired" LIBOR transition provisions consistent with those published by the Alternative Reference Rate Committee.
Significant cash flows from operations
Net cash provided by operating activities was $2.1 billion for the nine months ended September 30, 2021.
In addition to the positive impact of contractual escalators, we expect to grow our core business of providing access to our communications infrastructure as a result of future anticipated additional demand for our communications infrastructure.
Returning cash flows provided by operations to stockholders in the form of dividends
During each of the first three quarters of 2021, we paid a common stock dividend of $1.33 per share, totaling approximately $1.7 billion.
In October 2021, our board of directors declared a quarterly common stock dividend of $1.47 per share, which represents an increase of approximately 11% from the quarterly stock dividend declared during each of the first three quarters of 2021.
We currently expect our common stock dividends over the next 12 months to be a cumulative amount of at least $5.88 per share, or an aggregate amount of approximately $2.5 billion.
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Over time, we expect to increase our dividend per share generally commensurate with our growth in cash flows. Any future common stock dividends are subject to declaration by our board of directors. See notes 9 and 12 to our condensed consolidated financial statements for further information regarding our common stock and dividends.
Outlook Highlights
The following are certain highlights of our full year 2021 and 2022 outlook that impact our business fundamentals described above.
We expect that, when compared to full year 2020, our full year 2021 and 2022 site rental revenue will be positively impacted by tenant additions, as large wireless carriers and fiber solutions tenants continue to focus on meeting the increasing demand for data.
We expect to continue to invest a meaningful amount of our available capital in the form of discretionary capital expenditures for 2021 and 2022 based on the anticipated returns on such discretionary investments.
In both 2021 and 2022, we expect that our discretionary capital expenditures will decrease when compared to 2020. These expected decreases are primarily driven from lower small cell annual deployment levels in 2021 and 2022 compared to 2020.
We also expect sustaining capital expenditures to remain approximately 2% of net revenues for both full year 2021 and 2022, consistent with historical annual levels.
Coronavirus (COVID-19)
In accordance with the U.S. Department of Homeland Security guidance issued in March 2020 designating telecommunications infrastructure and networks as critical infrastructure, we have continued our operations to ensure the viability of communications networks, which are essential to public health and safety. In response to the pandemic, we have taken a variety of measures to ensure the availability of our critical infrastructure, promote the health and safety of our employees, and support the communities in which we operate. These measures included requiring work-from-home arrangements for a large portion of our workforce, imposing travel restrictions for our employees where practicable, canceling physical participation in certain meetings, events and conferences, forming an internal committee to monitor and implement procedures for the return of our workforce to an office setting, and other modifications to our business practices.
In accordance with the President’s executive order issued on September 9, 2021, executive departments and agencies have been directed to require federal contractors, and their subcontractors, to comply with guidance published by the Safer Federal Workforce Task Force ("Guidance") regarding COVID-19 workplace safeguards. The Guidance, issued September 24, 2021, requires federal contractors and their subcontractors to mandate COVID-19 vaccinations of covered employees (as defined in the Guidance), subject to medical and religious exemptions. As a federal contractor, we are subject to the Guidance, and as a result have required our employees to be fully vaccinated, subject to qualifying exemptions. To date, over 96% of our workforce has been fully vaccinated (or qualified for an exemption).
The Guidance also sets forth certain other requirements applicable to the federal contractors’ workplaces. To ensure compliance with the Guidance, we have postponed our previously-scheduled date for return to the office setting; however, we are allowing employees to return to the office environment on a voluntary basis, subject to applicable safety protocols. Additionally, we have begun permitting some business travel and in-person meetings in compliance with applicable public health guidance.
We will continue to actively monitor the situation and may take further actions as may be required by governmental authorities, as advised by public health officials or that we determine are in the best interests of our employees, tenants, business partners and stockholders. See "Part II—Item 1A. Risk Factors" for further information.
We do not believe that COVID-19 had a material impact on our financial position, results of operations and cash flows during the nine months ended September 30, 2021. Given the Company’s access to various sources of liquidity and no near term debt maturities other than Commercial Paper Notes and principal payments on amortizing debt, we currently anticipate that we will be able to maintain sufficient liquidity as we manage through the current environment. See also "Item 2. MD&A—Liquidity and Capital Resources—Liquidity Position."

Results of Operations
The following discussion of our results of operations should be read in conjunction with our condensed consolidated financial statements and the 2020 Form 10-K.
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The following discussion of our results of operations is based on our condensed consolidated financial statements prepared in accordance with GAAP, which requires us to make estimates and judgments that affect the reported amounts (see "Item 2. MD&A—Accounting and Reporting Matters—Critical Accounting Policies and Estimates" and note 2 to our consolidated financial statements in the 2020 Form 10-K). See "Item 2. MD&A—Accounting and Reporting Matters—Non-GAAP and Segment Financial Measures" for a discussion of our use of (1) segment site rental gross margin, (2) segment services and other gross margin, (3) segment operating profit, including their respective definitions, and (4) Adjusted EBITDA, including its definition, and a reconciliation to net income.
Our operating segments consist of (1) Towers and (2) Fiber. See note 10 to our condensed consolidated financial statements for further discussion of our operating segments.

Highlights of our results of operations for the three months ended September 30, 2021 and 2020 are depicted below.
(In millions of dollars) Three Months Ended September 30,
2021 2020 $ Change % Change
Site rental revenues:
Towers site rental revenues $972 $877 +$95 +11%
Fiber site rental revenues $479 $462 +$17 +4%
Total site rental revenues $1,451 $1,339 +$112 +8%
Segment site rental gross margin:
Towers site rental gross margin(a)
$745 $661 +$84 +13%
Fiber site rental gross margin(a)
$316 $317 $(1)
Segment services and other gross margin:
Towers services and other gross margin(a)
$54 $31 +$23 +74%
Fiber services and other gross margin(a)
$1 $1
Segment operating profit:
Towers operating profit(a)
$772 $670 +$102 +15%
Fiber operating profit(a)
$273 $276 $(3) (1)%
Income from continuing operations $351 $163 +$188 +115%
Net income attributable to CCIC stockholders $351 $163 +$188 +115%
Adjusted EBITDA(b)
$976 $883 +$93 +11%
(a)See note 10 to our condensed consolidated financial statements and "Item 2. MD&A—Accounting and Reporting Matters—Non-GAAP and Segment Financial Measures" for further discussion of our definitions of segment site rental gross margin, segment services and other gross margin and segment operating profit.
(b)See reconciliation of this non-GAAP financial measure to net income (loss) and definition included in "Item 2. MD&A—Accounting and Reporting Matters—Non-GAAP and Segment Financial Measures."
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Site rental revenues grew $112 million, or 8%, for the three months ended September 30, 2021 compared to the three months ended September 30, 2020. This growth was predominately comprised of the factors depicted in the chart below:
(In millions of dollars)
CCI-20210930_G2.JPG
(a)Includes amortization of up-front payments received from long-term tenant contracts and other deferred credits (commonly referred to as prepaid rent).
(b)Represents the contribution from recent acquisitions until the one-year anniversary of the acquisition.
Towers site rental revenues for the third quarter of 2021 were $972 million and increased by $95 million, or 11%, from $877 million during the same period in the prior year. The increase in Towers site rental revenues was impacted by the following items, inclusive of straight-line accounting: tenant additions across our entire portfolio, renewals or extensions of tenant contracts, escalations and non-renewals of tenants contracts. Tenant additions were influenced by our tenants' ongoing efforts to improve network quality and capacity.
Fiber site rental revenues for the third quarter of 2021 were $479 million and increased by $17 million, or 4%, from $462 million during the same period in the prior year. The increase in Fiber site rental revenues was predominately impacted by the increased demand for small cells and fiber solutions. Increased demand for small cells was driven by our tenants' network strategy in an effort to provide capacity and relieve network congestion, and increased demand for fiber solutions was driven by increasing demand for data.
The increase in Towers site rental gross margin from the third quarter of 2020 to the third quarter of 2021 was related to the previously-mentioned 11% increase in Towers site rental revenues and relatively fixed costs to operate our towers.
Towers services and other gross margin was $54 million for the third quarter of 2021 and increased by $23 million from $31 million during the same period in the prior year, which is a reflection of the volume of activity from carriers' network enhancements and the volume and mix of services and other work. Our services and other offerings are of a variable nature as these revenues are not under long-term contracts.
Selling, general and administrative expenses for the third quarter of 2021 were $167 million and increased by $13 million, or 8%, from $154 million during the same period in the prior year. The increase in selling, general and administrative expenses was primarily related to the growth in our business, partially offset by a decrease due to, among other factors, our fourth quarter 2020 reduction in force (as discussed in our 2020 Form 10-K).
Towers operating profit for the third quarter of 2021 increased by $102 million, or 15%, from the same period in the prior year. The increase in Towers operating profit was primarily related to the growth in our Towers site rental revenues and relatively fixed costs to operate our towers as well as the previously-mentioned increase in Towers services and other gross margin.
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Fiber operating profit remained relatively consistent for the third quarter of 2021 from the same period in the prior year, decreasing by $3 million, or 1%.
Interest expense and amortization of deferred financing costs were $163 million for the third quarter of 2021 and decreased by $5 million, or 3%, from $168 million during the same period in the prior year. The decrease predominately resulted from a reduction in the weighted-average interest rate on our debt as a result of our refinancing activities. See note 4 to our condensed consolidated financial statements and "Item 3. Quantitative and Qualitative Disclosures About Market Risk" for a further discussion of our debt.
For the third quarter of 2021 and 2020, the effective tax rate differs from the federal statutory rate predominately due to our REIT status, including the dividends paid deduction.  See note 6 to our condensed consolidated financial statements and also note 9 to our consolidated financial statements in the 2020 Form 10-K.
Income from continuing operations was $351 million during the third quarter of 2021 compared to $163 million during the third quarter of 2020. The increase was predominately related to growth in our site rental activities in both our Towers and Fiber segments as well as the previously-mentioned increase in Towers services activity.
Net income attributable to CCIC stockholders was $351 million during the third quarter of 2021 compared to $163 million during the third quarter of 2020. The increase was due to the previously-mentioned increase in income from continuing operations.
Adjusted EBITDA increased $93 million, or 11%, from the third quarter of 2020 to the third quarter of 2021, reflecting the growth in our site rental activities in both our Towers and Fiber segments as well as the previously-mentioned increase in Towers services activity.

Highlights of our results of operations for the nine months ended September 30, 2021 and 2020 are depicted below.
(In millions of dollars) Nine Months Ended September 30,
2021 2020 $ Change % Change
Site rental revenues:
Towers site rental revenues $2,819 $2,612 +$207 +8%
Fiber site rental revenues $1,426 $1,356 +$70 +5%
Total site rental revenues $4,245 $3,968 +$277 +7%
Segment site rental gross margin:
Towers site rental gross margin(a)
$2,160 $1,964 +$196 +10%
Fiber site rental gross margin(a)
$941 $909 +$32 +4%
Segment services and other gross margin:
Towers services and other gross margin(a)
$142 $56 +$86 +154%
Fiber services and other gross margin(a)
$4 $4
Segment operating profit:
Towers operating profit(a)
$2,224 $1,949 +$275 +14
Fiber operating profit(a)
$812 $776 +$36 +5%
Income from continuing operations $805 $548 +$257 +47%
Net income attributable to CCIC stockholders $743 $548 +$195 +36%
Adjusted EBITDA(b)
$2,831 $2,527 +$304 +12%
(a)See note 10 to our condensed consolidated financial statements for further discussion of our definitions of segment site rental gross margin, segment services and other gross margin and segment operating profit.
(b)See reconciliation of Adjusted EBITDA in "Item 2. MD&A—Accounting and Reporting Matters—Non-GAAP and Segment Financial Measures."
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Site rental revenues grew $277 million, or 7%, for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020. This growth was predominately comprised of the factors depicted in the chart below:
(In millions of dollars)
CCI-20210930_G3.JPG
(a)Includes amortization of up-front payments received from long-term tenant contracts and other deferred credits (commonly referred to as prepaid rent).
(b)Represents the contribution from recent acquisitions until the one-year anniversary of the acquisition.
Towers site rental revenues for the first nine months of 2021 were $2.8 billion and increased by $207 million, or 8%, from the same period in the prior year. The increase in Towers site rental revenues was impacted by the following items, inclusive of straight-line accounting: tenant additions across our entire portfolio, renewals or extensions of tenant contracts, escalations and non-renewals of tenant contracts. Tenant additions were influenced by our tenants' ongoing efforts to improve network quality and capacity.
Fiber site rental revenues for the first nine months of 2021 were $1.4 billion and increased by $70 million, or 5%, from $1.4 billion during the same period in the prior year. The increase in Fiber site rental revenues was predominately impacted by the increased demand for small cells and fiber solutions. Increased demand for small cells was driven by our tenants' network strategy in an effort to provide capacity and relieve network congestion, and increased demand for fiber solutions was driven by increasing demand for data.
The increase in Towers site rental gross margin was related to the previously-mentioned 8% increase in Towers site rental revenues and relatively fixed costs to operate our towers. The increase in Fiber site rental gross margin was predominately related to the previously-mentioned 5% increase in Fiber site rental revenues.
Towers services and other gross margin was $142 million for the first nine months of 2021 and increased by $86 million from $56 million during the same period in the prior year, which is a reflection of the volume of activity from carriers' network enhancements and the volume and mix of services and other work. Our services and other offerings are of a variable nature as these revenues are not under long-term contracts.
Selling, general and administrative expenses for the first nine months of 2021 were $500 million and increased by $7 million, or 1%, from $493 million during the same period in the prior year. The increase in selling, general and administrative expenses was primarily due to the growth in our business, partially offset by a decrease due to, among other factors, our fourth quarter 2020 reduction in force (as discussed in our 2020 Form 10-K)..
Towers operating profit for the first nine months of 2021 increased by$275 million, or 14%, from the prior year as a result of the previously-mentioned increase in Towers site rental gross margin as well as the previously-mentioned increase in Towers services and other gross margin.
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Fiber operating profit for the first nine months of 2021 increased by $36 million, or 5%, from the same period in the prior year. The increase in Fiber operating profit was primarily related to the the previously-mentioned growth in our Fiber site rental gross margin.
Depreciation, amortization and accretion was $1.2 billion for the first nine months of 2021 and increased by $22 million, or 2%, from the same period in the prior year. This increase predominately resulted from a corresponding increase in our gross property and equipment due to capital expenditures.
Interest expense and amortization of deferred financing costs were $493 million for the first nine months of 2021 and decreased $28 million, or 5%, from $521 million during the same period in the prior year. The decrease predominately resulted from a reduction in the weighted-average interest rate on our debt as a result of our refinancing activities. See note 4 to our condensed consolidated financial statements and "Item 3. Quantitative and Qualitative Disclosures About Market Risk" for a further discussion of our debt.
As a result of repaying certain of our indebtedness in conjunction with our refinancing activities, we incurred losses on retirement of long-term obligations of $145 million during the first nine months of 2021. See note 4 to our condensed consolidated financial statements.
For the first nine months of 2021 and 2020, the effective tax rate differs from the federal statutory rate predominately due to our REIT status, including the dividends paid deduction.  See note 6 to our condensed consolidated financial statements and also note 9 to our consolidated financial statements in our 2020 Form 10-K.
Income from continuing operations was $805 million for the first nine months of 2021 compared to $548 million during the first nine months of 2020. The increase was related to (1) growth in our site rental activities in both our Towers and Fiber segments, (2) the previously-mentioned increase in Towers services activity and (3) the previously-mentioned decrease in interest expense and amortization of deferred financing costs, partially offset by (1) the previously-mentioned losses on retirement of long-term obligations and (2) increase in depreciation, amortization and accretion.
Loss from discontinued operations, net of tax, was $62 million for the first nine months of 2021 due to the ATO Settlement. See note 6 to our condensed consolidated financial statements.
Net income attributable to CCIC stockholders was $743 million for the first nine months of 2021 compared to $548 million during the first nine months of 2020. The increase was due to the previously-mentioned increase in income from continuing operations, partially offset by the previously-mentioned loss from discontinued operations, net of tax.
Adjusted EBITDA increased $304 million, or 12%, from the first nine months of 2020 to the first nine months of 2021, reflecting the growth in our site rental activities in both our Towers and Fiber segments as well as the previously-mentioned increase in Towers service activity.

Liquidity and Capital Resources
Overview
General. Our core business generates revenues under long-term tenant contracts (see "Item 2. MD&A—General Overview—Overview") from (1) the largest U.S. wireless carriers and (2) fiber solutions tenants. As a leading provider of shared communications infrastructure in the U.S., our strategy is to create long-term stockholder value via a combination of (1) growing cash flows generated from our portfolio of communications infrastructure, (2) returning a meaningful portion of our cash generated by operating activities to our stockholders in the form of dividends, and (3) investing capital efficiently to grow cash flows and long-term dividends per share. Our strategy is based, in part, on our belief that the U.S. is the most attractive market for shared communications infrastructure investment with the greatest long-term growth potential. We measure our efforts to create "long-term stockholder value" by the combined payment of dividends to stockholders and growth in our per share results.
We have engaged, and expect to continue to engage, in discretionary investments that we believe will maximize long-term stockholder value. Our historical discretionary investments include (in no particular order): constructing communications infrastructure, acquiring communications infrastructure, acquiring land interests (which primarily relate to land assets under towers), improving and structurally enhancing our existing communications infrastructure, purchasing shares of our common stock, and purchasing, repaying, or redeeming our debt. We have recently spent, and expect to continue to spend, a significant percentage of our discretionary investments on the construction of small cells and fiber. We seek to fund our discretionary
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investments with both net cash generated by operating activities and cash available from financing capacity, such as the use of our undrawn availability from the 2016 Revolver, issuances under our CP Program, debt financings and issuances of equity or equity-related securities, including under our 2021 ATM Program.
We seek to maintain a capital structure that we believe drives long-term stockholder value and optimizes our weighted-average cost of capital. We target a leverage ratio of approximately five times Adjusted EBITDA and interest coverage of Adjusted EBITDA to interest expense of approximately three times, subject to various factors, such as the availability and cost of capital and the potential long-term return on our discretionary investments. We may choose to increase or decrease our leverage or coverage from these targets for various periods of time. We have no significant contractual debt maturities until 2023 (other than Commercial Paper Notes that may be outstanding from time to time and principal payments on certain outstanding debt).
We operate as a REIT for U.S. federal income tax purposes. We expect to continue to pay minimal cash income taxes as a result of our REIT status and our NOLs. See note 6 to our condensed consolidated financial statements and also our 2020 Form 10-K.
Liquidity Position. The following is a summary of our capitalization and liquidity position as of September 30, 2021. See "Item 3. Quantitative and Qualitative Disclosures About Market Risk" and note 4 to our condensed consolidated financial statements for additional information regarding our debt, as well as note 9 to our condensed consolidated financial statements for additional information regarding our 2021 ATM Program.
(In millions of dollars)
Cash, cash equivalents, and restricted cash(a)
$ 542 
Undrawn 2016 Revolver availability(b)
4,966 
Debt and other long-term obligations (current and non-current)(c)
20,365 
Total equity 8,516 
(a)Inclusive of $5 million included within "Other assets, net" on our condensed consolidated balance sheet.
(b)Availability at any point in time is subject to certain restrictions based on the maintenance of financial covenants contained in the 2016 Credit Facility. See the 2020 Form 10-K. At any point in time, we intend to maintain available commitments under our 2016 Revolver in an amount at least equal to the amount of outstanding Commercial Paper Notes.
(c)See "Item 2. MD&A—General Overview—Overview" and note 4 to our condensed consolidated financial statements for further information regarding the CP Program.
Over the next 12 months:
Our liquidity sources may include (1) cash on hand, (2) net cash generated by our operating activities, (3) undrawn availability under our 2016 Revolver, (4) issuances under our CP Program, and (5) issuances of equity pursuant to our 2021 ATM Program. Our liquidity uses over the next 12 months are expected to include (1) debt obligations of $737 million (consisting of Commercial Paper Notes and principal payments), (2) cumulative common stock dividend payments expected to be at least $5.88 per share, or an aggregate amount of approximately $2.5 billion (see "Item 2. MD&A—Business Fundamentals and Results") and (3) capital expenditures. We may also purchase shares of our common stock. Additionally, amounts available under the CP Program may be repaid and re-issued from time to time. During the next 12 months, while our liquidity uses are expected to exceed our net cash provided by operating activities, we expect that our liquidity sources described above should be sufficient to cover our expected uses. Historically, from time to time, we have accessed the capital markets to issue debt and equity.
See "Item 3. Quantitative and Qualitative Disclosures About Market Risk" and note 4 to our consolidated financial statements for a tabular presentation of our debt maturities and a discussion of anticipated repayment dates.
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Summary Cash Flow Information
Nine Months Ended September 30,
(In millions of dollars) 2021 2020 Change
Net increase (decrease) in cash, cash equivalents, and restricted cash:
Operating activities $ 2,055  $ 2,070  $ (15)
Investing activities (911) (1,336) 425 
Financing activities (921) (651) (270)
Net increase (decrease) in cash, cash equivalents, and restricted cash - continuing operations 223  83  140 
Effect of exchange rate changes on cash —  —  — 
Net increase (decrease) in cash, cash equivalents, and restricted cash - continuing operations 223  83  140 
Net increase (decrease) in cash, cash equivalents, and restricted cash - discontinued operations (62) —  (62)
Net increase (decrease) in cash, cash equivalents, and restricted cash $ 161  $ 83  $ 78 
Operating Activities
Net cash provided by operating activities of $2.1 billion for the first nine months of 2021 decreased by $15 million, or 1%, compared to the first nine months of 2020, due primarily to the growth in our core business, which was fully offset by a net decrease from changes in working capital. Changes in working capital contribute to variability in net cash provided by operating activities, largely due to the timing of advanced payments by us and advanced receipts from tenants. We expect to grow our net cash provided by operating activities in the future (exclusive of changes in working capital) if we realize expected growth in our core business.
Investing Activities
Net cash used for investing activities of $911 million for the first nine months of 2021 decreased by $425 million, or 32%, from the first nine months of 2020 primarily as a result of decreased discretionary capital expenditures in both our Towers and Fiber segments.
Capital Expenditures
Our capital expenditures are categorized as discretionary, integration or sustaining as described below.
Discretionary capital expenditures are made with respect to activities which we believe exhibit sufficient potential to enhance long-term stockholder value. They primarily consist of expansion or development of communications infrastructure (including capital expenditures related to (1) enhancing communications infrastructure in order to add new tenants for the first time or support subsequent tenant equipment augmentations or (2) modifying the structure of a communications infrastructure asset to accommodate additional tenants) and construction of new communications infrastructure. Discretionary capital expenditures also include purchases of land interests (which primarily relate to land assets under towers as we seek to manage our interests in the land beneath our towers), certain technology-related investments necessary to support and scale future customer demand for our communications infrastructure, and other capital projects. The expansion or development of existing communications infrastructure to accommodate new leasing typically varies based on, among other factors: (1) the type of communications infrastructure, (2) the scope, volume, and mix of work performed on the communications infrastructure, (3) existing capacity prior to installation, or (4) changes in structural engineering regulations and standards. Currently, construction of new communications infrastructure is predominately comprised of the construction of small cells and fiber (including certain construction projects that may take 18 to 36 months to complete). Our decisions regarding discretionary capital expenditures are influenced by the availability and cost of capital and expected returns on alternative uses of cash, such as payments of dividends and investments.
Sustaining capital expenditures consist of those capital expenditures not otherwise categorized as discretionary capital expenditures, such as (1) maintenance capital expenditures on our communications infrastructure assets that enable our tenants' ongoing quiet enjoyment of the communications infrastructure and (2) ordinary corporate capital expenditures.
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Capital expenditures for the nine months ended September 30, 2021 and 2020 were as follows:
For the Nine Months Ended
(In millions of dollars) September 30, 2021 September 30, 2020
Towers Fiber Other Total Towers Fiber Other Total
Discretionary:
Purchases of land interests $ 46  $ —  $ —  $ 46  $ 42  $ —  $ —  $ 42 
Communications infrastructure improvements and other capital projects(a)
104  666  20  790  218  889  25  1,132 
Sustaining 10  35  11  56  12  37  15  64 
Total $ 160  $ 701  $ 31  $ 892  $ 272  $