AMTAmerican Tower

Depreciation expense is recorded using the straight-line method over the assets’ estimated useful lives. The Company finalized its review of the estimated useful lives of its tower assets during the first quarter of 2024. The Company now has over 20 years of operating history, and determined that it should modify its current estimates for asset lives based on its historical operating experience. The Company retained an independent consultant to assist the Company in completing this review and analysis. The Company previously depreciated its towers on a straight-line basis over the shorter of the term of the underlying ground lease (including renewal options) taking into account residual value or the estimated useful life of the tower, which the Company had historically estimated to be 20 years. The Company determined that the estimated useful life of its tower assets is 30 thirty years, before taking into account residual value. Additionally, certain of the Company’s intangible assets are amortized on a similar basis to its tower assets, as the estimated useful lives of such intangible assets correlate to the useful life of the towers. The Company accounted for the changes in the useful lives as a change in accounting estimate under ASC 250 Accounting Changes and Error Corrections, which were recorded prospectively beginning on January 1, 2024. On January 1, 2024, the Company began depreciating its towers and related intangible assets on a straight-line basis over the remaining estimated useful life of the tower, taking into account the extended useful life and residual value. The extension of the asset lives (i) resulted in an approximately $ 515 million increase in the right of use asset, as additional renewal options may be included, with an offsetting adjustment made to increase the related operating lease liability and (ii) resulted in an estimated $ 730 million ($ 649 million after tax, or an increase of $ 1.39 per diluted share) decrease in depreciation and amortization expense for the year ended December 31, 2024.

In addition, as of January 1, 2024, we and our subsidiaries, in principle, became subject to the Organization for Economic Cooperation and Development (the “OECD”) Global Anti-Base Erosion Rules (the “Pillar 2 Rules”) as promulgated by jurisdictions. The Pillar 2 Rules can potentially lead to additional taxes (“Top-Up Tax”) when the effective tax rate (as defined by the Pillar 2 Rules) in a jurisdiction is below 15%. The Pillar 2 Rules, however, do not apply to “Excluded Entities” and certain subsidiaries of Excluded Entities. We are currently analyzing our qualification believe we qualify as an Excluded Entity as a “Real Estate Investment Vehicle.” In the event we certain subsidiaries do not qualify as a Real Estate Investment Vehicle, Excluded Entities, available “Safe Harbor” rules could apply that would exempt the entities from any Top-Up Taxes Tax. For 2025, the Under-Taxed Payments Rule (UTPR) Safe Harbor excludes all US income from the Pillar 2 Rules. In addition, substantially all of our non-excluded, non-U.S. jurisdictions qualify for other Safe Harbors. The remaining jurisdictions that may apply beginning not qualify would have immaterial Top-Up Taxes. Beginning in fiscal year 2026 2026, the U.S. income of non-excluded entities may result in material Top-Up Taxes; however, on our United States income and may be material. January 5, 2026, the OECD announced a comprehensive Side-by-Side Safe harbor exceptions are expected to apply for Harbor that, if enacted, would exempt U.S.-parented multinational companies from certain Top-Up Taxes under the majority of our non-United States income, and for those entities that do Pillar 2 Rules beginning January 1, 2026. The Side-by-Side Safe Harbor is not meet certain safe harbor tests, the impact to us as a whole is expected an exemption from any qualified domestic minimum Top-Up Tax. The Side-by-Side Safe Harbor has yet to be immaterial. It is noted enacted in any jurisdiction where we operate that has already implemented the Pillar 2 Rules. Additionally, the Pillar 2 Rules are still yet to be implemented enacted in most many of the jurisdictions in which we operate. Developments will be monitored as guidance and local implementation progresses.

India Bangladesh Term Loan—On February 17, 2023, Loan—In March 2025, we borrowed 10.0 billion INR entered into a 400.0 million BDT (approximately $120.7 million at the date of borrowing) under an unsecured $3.3 million) term loan in India with a maturity date that is one year eight years from the date of the first draw thereunder (the “India “Bangladesh Term Loan”). In January 2024, On March 24, 2025, we amended borrowed 150.0 million BDT (approximately $1.2 million) under the India Bangladesh Term Loan. The Bangladesh Term Loan bears interest at 13.50% per annum, subject to extend the quarterly resets. Interest is payable quarterly. Any outstanding principal and accrued but unpaid interest will be due and payable in full at maturity. The Bangladesh Term Loan does not require amortization of principal and may be paid prior to maturity date to December 31, 2024. On September 12, 2024, in connection with the completion of the ATC TIPL Transaction, we repaid the India Term Loan. whole or in part at our option without penalty or premium.

AT&T Transaction - The Company has an agreement with SBC Communications Inc., a predecessor entity to AT&T Inc. (“AT&T”), that currently provides for the lease or sublease of approximately 1,600 towers, which commenced between December 2000 and August 2004. Substantially all of the towers are part of the Trust Securitization. The average term of the lease or sublease for all sites at the inception of the agreement was approximately 27 years, assuming renewals or extensions of the underlying ground leases for the sites. The Company has the option to purchase the sites subject to the applicable lease or sublease upon its expiration. Each tower is assigned to an annual tranche, ranging from 2013 to 2032, which represents the outside expiration date for the sublease rights to that tower. The purchase price for each site is a fixed amount stated in the lease for that site plus the fair market value of certain alterations made to the related tower by AT&T. As of December 31, 2024, 2025, the Company has purchased an aggregate of approximately 700 800 of the subleased towers which are subject to the applicable agreement, including 80 104 towers purchased during the year ended December 31, 2024 2025 for an aggregate purchase price of $ 59.1 82.0 million. The aggregate purchase option price for the remaining towers leased and subleased is $ 1.2 billion and includes per annum accretion through the applicable expiration of the lease or sublease of a site. For all such the applicable sites, AT&T has the right to continue to lease the reserved space through June 30, 2025 at the then-current subject to a monthly fee, which shall escalate in accordance with the standard master lease agreement for the remainder of AT&T’s tenancy. Thereafter, AT&T shall have the right to renew such each lease for up to five successive five-year terms.