CROWN CASTLE INC
For the period ended Sep 30, 2024. Filed Oct 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 30, 2024
CCI$88.60-2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-07-30.
0001051470-24-000186
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0001051470-24-000216
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 175 previous paragraphs and 177 current paragraphs.
115 unchanged; 54 reworded; 7 added; 3 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
◦In August 2024, we issued $550 million aggregate principal amount of 4.900% senior unsecured notes due 2029 and $700 million aggregate principal amount of 5.200% senior unsecured notes due 2034 (collectively, "August 2024 Senior Notes"). We used the net proceeds from the August 2024 Senior Notes offering to repay a portion of the outstanding indebtedness under the Company's unsecured commercial paper program ("CP Program") and pay related fees and expenses.
Current report
◦In September 2024, we repaid in full the $750 million aggregate principal amount of 3.200% senior unsecured notes on the contractual maturity date.
Current report
•In addition to the aforementioned delays, as part of the previously announced plans to enhance returns in the Fiber segment, we completed discussions with certain of our customers and jointly identified approximately 7,000 greenfield small cell nodes in our contracted backlog that we mutually agreed to cancel. These cancellations are expected to result in a $125 to $150 million asset write-down charge in the fourth quarter of 2024.
Current report
Towers operating profit (loss) for the third quarter of 2024 decreased by $6 million, or 1%, from the same period in the prior year as a result of the previously-mentioned decrease in Towers site rental gross margin, which was partially offset by the increase in Towers services and other gross margin.
Current report
Fiber operating profit (loss) for the third quarter of 2024 increased by $29 million, or 10%, from the same period in the prior year as a result of the previously-mentioned increase in Fiber site rental gross margin.
Current report
Restructuring charges in connection with the Restructuring Plans were $48 million for the third quarter of 2024 and decreased by $24 million, or 33%, from the same period in the prior year. This decrease predominately resulted from a decrease in employee headcount reduction charges during the quarter compared to the same period in the prior year when the 2023 Restructuring Plan was initially announced. The decline in employee headcount reduction charges was partially offset by an increase in office closure charges in the current period, primarily related to the 2024 Restructuring Plan. See note 12 to our condensed consolidated financial statements.
Current report
Restructuring charges in connection with the Restructuring Plans were $104 million for the first nine months of 2024 and increased by $32 million, or 44%, from the same period in the prior year. This increase primarily resulted from an increase in office closure costs in connection with the 2024 Restructuring Plan, when compared to the 2023 Restructuring Plan. This increase was partially offset by lower employee headcount reduction charges in connection with the 2024 Restructuring Plan, when compared to the 2023 Restructuring Plan. See note 12 to our condensed consolidated financial statements.
Removed paragraphs (3)
Previous report
Fiber operating profit (loss) for the second quarter of 2024 decreased by $149 million, or 34%, from the same period in the prior year as a result of the previously-mentioned decreases in both Fiber site rental gross margin and Fiber services and other gross margin.
Previous report
Restructuring charges in connection with the Restructuring Plans were $45 million for the second quarter of 2024. The charges primarily consisted of $37 million related to cash payments that have been or will be made associated with employee severance and other one-time termination benefits and $1 million of remaining obligations under facility leases. Additionally, non-cash charges of $7 million for accelerated depreciation were also recorded. See note 12 to our condensed consolidated financial statements.
Previous report
Restructuring charges in connection with the Restructuring Plans were $56 million for the first six months of 2024. The charges primarily consisted of $37 million related to cash payments that have been or will be made associated with employee severance and other one-time termination benefits and $8 million of remaining obligations under facility leases payable through 2033. Additionally, non-cash charges of $11 million for accelerated depreciation were also recorded. See note 12 to our condensed consolidated financial statements.
Reworded paragraphs (54)
Previous wording
We own, operate and lease shared communications infrastructure that is geographically dispersed throughout the U.S., including (1) more than 40,000 towers and other structures, such as rooftops (collectively, "towers"), (2) approximately 115,000 small cells on air or under contract and (3) approximately 90,000 route miles of fiber primarily supporting small cells and fiber solutions.
Current wording
We own, operate and lease shared communications infrastructure that is geographically dispersed throughout the U.S., including (1) more than 40,000 towers and other structures, such as rooftops (collectively, "towers"), (2) approximately 105,000 small cell nodes either currently generating revenue or under contract and (3) approximately 90,000 route miles of fiber primarily supporting small cells and fiber solutions.
Previous wording
Our towers have a significant presence in each of the top 100 basic trading areas ("BTAs"), and the majority of our small cells and fiber assets are located in major metropolitan areas, including a presence within every major U.S. market. Site rental revenues represented 97% of our second quarter 2024 consolidated net revenues, of which 67% and 33% were from our Towers segment and Fiber segment, respectively. Within our Fiber segment, 67% and 33% of our second quarter 2024 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 are of a recurring nature and are derived from long-term tenant contracts.
Current wording
Our towers have a significant presence in each of the top 100 basic trading areas ("BTAs"), and the majority of our small cells and fiber assets are located in major metropolitan areas, including a presence within every major U.S. market. Site rental revenues represented 96% of our third quarter 2024 consolidated net revenues, of which 67% and 33% were from our Towers segment and Fiber segment, respectively. Within our Fiber segment, 64% and 36% of our third quarter 2024 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 are of a recurring nature and are derived from long-term tenant contracts.
Previous wording
◦We had discretionary capital expenditures of $600 million for the six months ended June 30, 2024, predominately resulting from the construction of new communications infrastructure and improvements to existing communications infrastructure in order to support additional tenants.
Current wording
◦We had discretionary capital expenditures of $874 million for the nine months ended September 30, 2024, predominately resulting from the construction of new communications infrastructure and improvements to existing communications infrastructure in order to support additional tenants.
Previous wording
◦As of June 30, 2024, our weighted-average remaining term was approximately six years, exclusive of renewals exercisable at the tenants' option, currently representing approximately $37.3 billion of expected future cash inflows.
Current wording
◦As of September 30, 2024, our weighted-average remaining term was approximately six years, exclusive of renewals exercisable at the tenants' option, currently representing approximately $36.6 billion of expected future cash inflows.
Previous wording
◦For the six months ended June 30, 2024, approximately three-fourths of our site rental revenues were derived from T-Mobile, AT&T and Verizon Wireless.
Current wording
◦For the nine months ended September 30, 2024, approximately three-fourths of our site rental revenues were derived from T-Mobile, AT&T and Verizon Wireless.
Previous wording
◦For the six months ended June 30, 2024, approximately 90% of our towers site rental gross margin and approximately 80% of our towers site rental gross margin was 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 represented approximately 40% of our towers site rental gross margin.
Current wording
◦For the nine months ended September 30, 2024, approximately 90% of our towers site rental gross margin and approximately 80% of our towers site rental gross margin was 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 represented approximately 40% of our towers site rental gross margin.
Previous wording
◦For the six months ended June 30, 2024, sustaining capital expenditures represented approximately 1% of net revenues.
Current wording
◦For the nine months ended September 30, 2024, sustaining capital expenditures represented approximately 1% of net revenues.
Previous wording
◦As of June 30, 2024, 89% of our debt had fixed rate coupons.
Current wording
◦As of September 30, 2024, 90% of our debt had fixed rate coupons.
Previous wording
•During 2024, we have completed the following financing activity (see note 9 to our condensed consolidated financial statements)
Current wording
•During 2024, we have completed the following financing activities (see notes 4 and 9 to our condensed consolidated financial statements)
Previous wording
◦Net cash provided by operating activities was $1.4 billion for the six months ended June 30, 2024.
Current wording
◦Net cash provided by operating activities was $2.1 billion for the nine months ended September 30, 2024.
Previous wording
◦During each of the first two quarters of 2024, we paid a common stock dividend of $1.565 per share, totaling approximately $1.4 billion.
Current wording
◦During each of the first three quarters of 2024, we paid a common stock dividend of $1.565 per share, totaling approximately $2.0 billion.
Previous wording
•In December 2023, we announced a strategic and operating review of our Fiber segment. While the strategic review remains underway, in the second quarter of 2024, we concluded our operating review and implemented changes to our operating plans based on the findings. See note 12 to our condensed consolidated financial statements and"Item 2. MD&A—Outlook Highlights" for further discussion of the 2024 Restructuring Plan.
Current wording
•In December 2023, we announced a strategic and operating review of our Fiber segment. While the strategic review remains underway, in the second quarter of 2024, we concluded our operating review and implemented changes to our operating plans based on the findings. See note 12 to our condensed consolidated financial statements and"Item 2. MD&A—Outlook Highlights" for further discussion of the 2024 Restructuring Plan; in addition, see note 13 to our condensed consolidated financial statements and"Item 2. MD&A—Outlook Highlights"for further discussion of the cancellation of approximately 7,000 greenfield small cell nodes.
Previous wording
◦We expect to incur an additional approximately $70 million of restructuring charges during the second half of 2024, primarily related to the 2024 Restructuring Plan and the resulting office closures. We may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the 2024 Restructuring Plan. Additionally, in connection with the 2024 Restructuring Plan, we expect to realize approximately $60 million in labor and facilities cost savings in 2024, of which $50 million is expected in selling, general and administrative and $10 million in site rental costs of operations. The 2024 cost savings are expected to be partially offset by a $25 million reduction in site rental revenues due to a reduction of 3,000 to 5,000 new revenue-generating small cell nodes in 2024.
Current wording
◦We expect to incur an additional approximately $10 million of restructuring charges during the fourth quarter of 2024, primarily related to the 2024 Restructuring Plan and the resulting office closures. We may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the 2024 Restructuring Plan. Additionally, in connection with the 2024 Restructuring Plan, we expect to realize approximately $60 million in labor and facilities cost savings in 2024, of which $50 million is expected in selling, general and administrative and $10 million in site rental costs of operations. The 2024 cost savings are expected to be partially offset by a $25 million reduction in site rental revenues due to our change in operational strategy which includes a reduction of 3,000 to 5,000 new revenue-generating small cell nodes in 2024, which are now expected to be deployed primarily in 2025 and 2026.
Previous wording
Site rental revenues decreased $148 million, or 9%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. This decrease was predominately comprised of the factors depicted in the chart below:
Current wording
Site rental revenues increased $16 million, or 1%, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. This increase was predominately comprised of the factors depicted in the chart below:
Previous wording
(a)Represents site rental revenues growth from tenant additions across our entire portfolio and renewals or extensions of tenant contracts, exclusive of the impacts from straight-line accounting and amortization of prepaid rent, in accordance with GAAP, and change in payments associated with Sprint Cancellations .
Current wording
(a)Represents site rental revenues growth from tenant additions across our entire portfolio and renewals or extensions of tenant contracts, exclusive of the impacts from straight-line accounting and amortization of prepaid rent, in accordance with GAAP, and change in payments for Sprint Cancellations.
Previous wording
(b)Includes $7 million of non-renewals associated with Sprint Cancellations.
Current wording
(b)Includes $1 million of non-renewals associated with Sprint Cancellations.
Previous wording
(c)Represents $106 million of payments associated with Sprint Cancellations received in the second quarter 2023 and not recurring in 2024, which were partially offset by approximately $1 million of payments associated with Sprint Cancellations received in the second quarter 2024.
Current wording
(c)Represents $6 million of payments associated with Sprint Cancellations received in the third quarter 2023 and not recurring in 2024, which were partially offset by approximately $1 million of payments associated with Sprint Cancellations received in the third quarter 2024.
Previous wording
Towers site rental revenues and Towers site rental gross margin for the second quarter of 2024 were $1.1 billion and $819 million, respectively, compared to $1.1 billion and $837 million, respectively, in the same period in the prior year. The decrease of $16 million and $18 million in Towers site rental revenue and Towers site rental gross margin, respectively, was primarily due to a decrease in prepaid rent amortization, as new leasing activity and contractual cash escalators were substantially offset by a decline in the associated straight-line accounting adjustment.
Current wording
Towers site rental revenues and Towers site rental gross margin for the third quarter of 2024 were $1.1 billion and $823 million, respectively, compared to $1.1 billion and $838 million, respectively, in the same period in the prior year. The decrease of $11 million and $15 million in Towers site rental revenue and Towers site rental gross margin, respectively, was primarily due to a decrease in prepaid rent amortization, as new leasing activity and contractual cash escalators were substantially offset by a decline in the associated straight-line accounting adjustment.
Previous wording
Fiber site rental revenues and Fiber site rental gross margin for the second quarter of 2024 were $516 million and $338 million, respectively, and decreased by $132 million and $139 million, respectively, from the same period in the prior year. The decrease in Fiber site rental revenues and Fiber site rental gross margin was predominately impacted by the $105 million reduction in site rental revenues and the absence of $57 million in accelerated prepaid rent amortization, both related to the Sprint Cancellations, which was partially offset by the increased demand for small cells and fiber.
Current wording
Fiber site rental revenues and Fiber site rental gross margin for the third quarter of 2024 were $530 million and $348 million, respectively, and increased by $27 million and $20 million, respectively, from the same period in the prior year. The increase in Fiber site rental revenues and Fiber site rental gross margin was predominately impacted by (1) an increase in site rental revenues related to certain contract cancellation payments and (2) additional small cell deployments since the third quarter of 2023.
Previous wording
Towers services and other gross margin was $38 million for the first six months of 2024 and decreased by $41 million from $79 million during the same period in the prior year, which is a reflection of the lower 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 tenant contracts. See note 12 to our condensed consolidated financial statements for a discussion of the 2023 Restructuring Plan, which included discontinuing installation services as a Towers product offering.
Current wording
Towers services and other gross margin was $29 million for the third quarter of 2024 and increased by $4 million from $25 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 tenant contracts. See note 12 to our condensed consolidated financial statements for a discussion of the 2023 Restructuring Plan, which included discontinuing installation services as a Towers product offering.
Previous wording
Selling, general and administrative expenses for the second quarter of 2024 were $204 million and decreased by $6 million, or 3%, from $210 million during the same period in the prior year. This decrease was primarily related to a decrease in employee-related cost as a result of our aforementioned restructuring activities, which was partially offset by an increase in legal and consulting fees, mostly stemming from our recent proxy contest.
Current wording
Selling, general and administrative expenses for the third quarter of 2024 were $153 million and decreased by $23 million, or 13%, from $176 million during the same period in the prior year. This decrease was primarily related to a decrease in employee- and facility-related costs as a result of our aforementioned restructuring activities.
Previous wording
Depreciation, amortization and accretion was $430 million for second quarter of 2024 and decreased by $15 million, or 3%, from the same period in the prior year. This decrease predominately resulted from certain site rental contracts and tenant relationships intangible assets becoming fully amortized.
Current wording
Depreciation, amortization and accretion was $432 million for third quarter of 2024 and decreased by $7 million, or 2%, from the same period in the prior year. This decrease predominately resulted from certain site rental contracts and tenant relationships intangible assets becoming fully amortized.
Previous wording
Interest expense and amortization of deferred financing costs, net were $230 million for the second quarter of 2024 and increased by $22 million, or 11%, from $208 million during the same period in the prior year. The increase predominately resulted from an increase in the variable interest rate on our 2016 Term Loan A, as well as an increase in our outstanding indebtedness due to the financing of our discretionary capital expenditures. See note 4 to our condensed consolidated financial statements for a further discussion of our debt and"Item 3. Quantitative and Qualitative Disclosures About Market Risk" for a further discussion of our interest rate exposure.
Current wording
Interest expense and amortization of deferred financing costs, net were $236 million for the third quarter of 2024 and increased by $19 million, or 9%, from $217 million during the same period in the prior year. The increase predominately resulted from an increase in our outstanding indebtedness due to the financing of our discretionary capital expenditures. See note 4 to our condensed consolidated financial statements for a further discussion of our debt and"Item 3. Quantitative and Qualitative Disclosures About Market Risk" for a further discussion of our interest rate exposure.
Previous wording
The provision for income taxes was $7 million for both the second quarter of 2024 and 2023. For the second quarter 2024 and 2023, 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 2023 Form 10-K.
Current wording
The provision for income taxes was $5 million for the third quarter of 2024 and decreased by $2 million or 29%, from $7 million during the same period in the prior year. For the third quarter 2024 and 2023, 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 2023 Form 10-K.
Previous wording
Net income (loss) was $251 million for the second quarter of 2024 compared to $455 million during the second quarter of 2023. The decrease was primarily related to the previously-mentioned decreases in Towers and Fiber operating profits and the previously-mentioned increases in restructuring charges and interest expense, and amortization of deferred financing costs, net.
Current wording
Net income (loss) was $303 million for the third quarter of 2024 compared to $265 million during the third quarter of 2023. The increase was primarily related to the previously-mentioned increase in Fiber operating profits and decreases in restructuring charges and selling, general and administrative expenses, which were partially offset by an increase in interest expense and amortization of deferred financing costs, net.
Previous wording
Adjusted EBITDA decreased by $182 million, or 15%, from the second quarter of 2023 to the second quarter of 2024, reflecting the previously-mentioned decreases in Towers and Fiber operating profits.
Current wording
Adjusted EBITDA increased by $28 million, or 3%, from the third quarter of 2023 to the third quarter of 2024, reflecting the previously-mentioned increase in Fiber operating profit.
Previous wording
Highlights of our results of operations for the six months ended June 30, 2024 and 2023 are depicted below.
Current wording
Highlights of our results of operations for the nine months ended September 30, 2024 and 2023 are depicted below.
Previous wording
Site rental revenues decreased $184 million, or 5%, for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. This decrease was predominately comprised of the factors depicted in the chart below:
Current wording
Site rental revenues decreased $168 million, or 3%, for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. This decrease was predominately comprised of the factors depicted in the chart below:
Previous wording
(a)Represents site rental revenues growth from tenant additions across our entire portfolio and renewals or extensions of tenant contracts, exclusive of the impacts from both straight-line accounting and amortization of prepaid rent in accordance with GAAP.
Current wording
(a)Represents site rental revenues growth from tenant additions across our entire portfolio and renewals or extensions of tenant contracts, exclusive of the impacts from both straight-line accounting and amortization of prepaid rent in accordance with GAAP, and change in payments for Sprint Cancellations.
Previous wording
(b)Includes $7 million of non-renewals associated with Sprint Cancellations.
Current wording
(b)Includes $8 million of non-renewals associated with Sprint Cancellations.
Previous wording
(c)Represents $154 million of payments associated with Sprint Cancellations received in the first six months 2023 and not recurring in 2024, which were partially offset by approximately $4 million of payments associated with Sprint Cancellations received in the first six months of 2024.
Current wording
(c)Represents $160 million of payments associated with Sprint Cancellations received in the first nine months 2023 and not recurring in 2024, which were partially offset by approximately $5 million of payments associated with Sprint Cancellations received in the first nine months of 2024.
Previous wording
(d)Prepaid rent amortization includes amortization of upfront payments received from long-term tenants and other deferred credits. Prepaid rent amortization includes $57 million of accelerated prepaid rent amortization associated with the Sprint Cancellations that was recognized in the first six months of 2023 that did not recur in 2024.
Current wording
(d)Prepaid rent amortization includes amortization of upfront payments received from long-term tenants and other deferred credits. Prepaid rent amortization includes $57 million of accelerated prepaid rent amortization associated with the Sprint Cancellations that was recognized in the first nine months of 2023 that did not recur in 2024.
Previous wording
Towers site rental revenues and Towers site rental gross margin for the first six months of 2024 were $2.1 billion and $1.6 billion, respectively, compared to $2.2 billion and $1.7 billion, respectively, in the same period in the prior year. The decrease of $29 million and $35 million in Towers site rental revenue and Towers site rental gross margin, respectively, was primarily due to a decrease in prepaid rent amortization, as new leasing activity and contractual cash escalators were substantially offset by a decline in the associated straight-line accounting adjustment.
Current wording
Towers site rental revenues and Towers site rental gross margin for the first nine months of 2024 were $3.2 billion and $2.5 billion, respectively, compared to $3.2 billion and $2.5 billion, respectively, in the same period in the prior year. The decrease of $38 million and $47 million in Towers site rental revenue and Towers site rental gross margin, respectively, was primarily due to a decrease in prepaid rent amortization, as new leasing activity and contractual cash escalators were substantially offset by a decline in the associated straight-line accounting adjustment.
Previous wording
Fiber site rental revenues and Fiber site rental gross margin for the first six months of 2024 were $1.0 billion and $676 million, respectively, and decreased by $155 million and $172 million, respectively, from the same period in the prior year. Both Fiber site rental revenues and Fiber site rental gross margin were predominately impacted by a $150 million reduction in site rental revenues and an absence of $57 million of accelerated prepaid rent amortization, both related to the Sprint Cancellations.
Current wording
Fiber site rental revenues and Fiber site rental gross margin for the first nine months of 2024 were $1.6 billion and $1.0 billion, respectively, and decreased by $130 million and $154 million, respectively, from the same period in the prior year. Both Fiber site rental revenues and Fiber site rental gross margin were predominately impacted by a $155 million reduction in site rental revenues and an absence of $57 million of accelerated prepaid rent amortization, both related to the Sprint Cancellations, which were partially offset by increased demand for small cells and fiber solutions.
Previous wording
Towers services and other gross margin was $20 million for the second quarter of 2024 and decreased by $12 million from $32 million during the same period in the prior year, which is a reflection of the lower volume of activity from carriers' network enhancements, the volume and mix of services and other work and the discontinuation of installation services as a Towers product offering. Our services and other offerings are of a variable nature as these revenues are not under long-term tenant contracts. See note 12 to our condensed consolidated financial statements for a discussion of the 2023 Restructuring Plan, which included discontinuing installation services as a Towers product offering.
Current wording
Towers services and other gross margin was $67 million for the first nine months of 2024 and decreased by $37 million from $104 million during the same period in the prior year, which is a reflection of the lower volume of activity from carriers' network enhancements, the volume and mix of services and other work and the discontinuation of installation services as a Towers product offering. Our services and other offerings are of a variable nature as these revenues are not under long-term tenant contracts. See note 12 to our condensed consolidated financial statements for a discussion of the 2023 Restructuring Plan, which included discontinuing installation services as a Towers product offering.
Previous wording
Fiber services and other gross margin was $3 million for the first six months of 2024 and decreased by $10 million from $13 million during the same period in the prior year primarily as a result of the absence of site abandonment fees associated with the Sprint Cancellations that were received during the first six months of 2023.
Current wording
Fiber services and other gross margin was $5 million for the first nine months of 2024 and decreased by $9 million from $14 million during the same period in the prior year primarily as a result of the absence of site abandonment fees associated with the Sprint Cancellations that were received during the first nine months of 2023.
Previous wording
Selling, general and administrative expenses for the first six months of 2024 were $387 million and decreased by $18 million, or 4%, from $405 million during the same period in the prior year. This decrease was primarily related to a decrease in employee-related cost as a result of our aforementioned restructuring activities, which was partially offset by an increase in legal and consulting fees, mostly stemming from our recent proxy contest.
Current wording
Selling, general and administrative expenses for the first nine months of 2024 were $540 million and decreased by $41 million, or 7%, from $581 million during the same period in the prior year. This decrease was primarily related to a decrease in employee- and facility-related costs as a result of our aforementioned restructuring activities, which was partially offset by an increase in legal and consulting fees, mostly stemming from our recent proxy contest.
Previous wording
Towers operating profit (loss) for the first six months of 2024 decreased by $52 million, or 3%, from the same period in the prior year as a result of the previously-mentioned decreases in both Towers site rental gross margin and Towers services and other gross margin.
Current wording
Towers operating profit (loss) for the first nine months of 2024 decreased by $56 million, or 2%, from the same period in the prior year as a result of the previously-mentioned decreases in both Towers site rental gross margin and Towers services and other gross margin which were partially offset by a decrease in Towers selling, general and administrative expenses following the 2023 Restructuring Plan.
Previous wording
Fiber operating profit (loss) for the first six months of 2024 decreased by $179 million, or 24%, from the same period in the prior year as a result of the previously-mentioned decrease in both Fiber site rental gross margin and Fiber services and other gross margin.
Current wording
Fiber operating profit (loss) for the first nine months of 2024 decreased by $152 million, or 15%, from the same period in the prior year as a result of the previously-mentioned decrease in both Fiber site rental gross margin and Fiber services and other gross margin.
Previous wording
Depreciation, amortization and accretion was $869 million for the first six months of 2024 and decreased by $7 million, or 1%, from the same period in the prior year. This decrease predominately resulted from certain site rental contracts and tenant relationships intangible assets becoming fully amortized.
Current wording
Depreciation, amortization and accretion was $1.3 billion for the first nine months of 2024 and decreased by $14 million, or 1%, from the same period in the prior year. This decrease predominately resulted from certain site rental contracts and tenant relationships intangible assets becoming fully amortized.
Showing the first 40 of 54 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
(d)Prepaid rent amortization includes amortization of upfront payments received from long-term tenants and other deferred credits.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Fiber services and other gross margin was $1 million for the second quarter of 2024 and decreased by $11 million from $12 million during the same period in the prior year primarily as a result of the absence of site abandonment fees associated with the Sprint Cancellations that were received during the second quarter of 2023.
Previous report — wording carried elsewhere
Towers operating profit (loss) for the second quarter of 2024 decreased by $16 million, or 2%, from the same period in the prior year as a result of the previously-mentioned decreases in both Towers site rental gross margin and Towers services and other gross margin.
Previous report — wording carried elsewhere
(d)Prepaid rent amortization includes amortization of upfront payments received from long-term tenants and other deferred credits. Prepaid rent amortization includes $57 million of accelerated prepaid rent amortization associated with the Sprint Cancellations that was recognized in the first six months of 2023 that did not recur in 2024.