Summary
American Tower Corporation (AMT) has announced that it will restate its previously issued financial statements for periods ending on or prior to September 30, 2004. This restatement is due to errors identified in the accounting treatment of ground leases underlying the company's tower sites. Specifically, the company will adjust the periods used for calculating depreciation and straight-line rent expense related to certain tower assets and their associated ground leases. The primary impact of this correction is an acceleration of non-cash rent and depreciation expenses into earlier periods, leading to an increase in these reported non-cash expenses. Importantly, this restatement will not affect historical or future cash flows from operations, the timing or amount of ground lease payments, or the company's compliance with financial covenants under its credit facilities or debt instruments. The company will file amended reports with restated financial statements for the three-year period ended December 31, 2003, and the first three fiscal quarters of 2004.
Key Highlights
- 1American Tower Corporation will restate financial statements for periods ending on or prior to September 30, 2004.
- 2The restatement corrects accounting errors related to ground leases for tower sites.
- 3Adjustments involve accelerating non-cash rent and depreciation expenses to earlier periods.
- 4The restatement will increase reported non-cash expenses.
- 5Crucially, the restatement will not impact historical or future cash flows from operations.
- 6Compliance with financial covenants under debt agreements remains unaffected.
- 7Amended filings with restated financial statements will be submitted to the SEC.