{
  "docId": "019dd923-622c-750b-8b96-1aee342c3a73",
  "docSlug": "10dc4f9f3e31",
  "documentTitle": "American Tower (AMT)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2013-07-17 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 80,
  "pageCount": 118,
  "prevPage": 79,
  "nextPage": 81,
  "slideType": "appendix_methodology",
  "function": "analyze_data",
  "density": "dense",
  "nDataPoints": 3,
  "notes": "This page serves as a technical appendix detailing accounting assumptions for a valuation model.",
  "elementsJson": [
    "paragraph"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-1aee342c3a73/80",
  "deckHref": "/decks/019dd923-622c-750b-8b96-1aee342c3a73",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-1aee342c3a73.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-1aee342c3a73#slide-80",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "A sharp rise in interest rates poses a risk to equity investors as the Company currently has approximately US$8.4 billion of net debt on its balance sheet.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-e6f0-72b6-8696-9fd5414564b5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.72,
        "x": 0.14,
        "y": 0.27
      },
      "kind": "paragraph",
      "text": "Interest Expense: For purposes of calculating interest expense, we assumed that the Company would pay down some debt. But, the majority of debt was assumed to be rolled over into new debt upon maturity at comparable interest rates. A sharp rise in interest rates poses a risk to equity investors as the Company currently has approximately US$8.4 billion of net debt on its balance sheet.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "12222054-aca8-468a-9a85-5cdaeeaf75a9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.72,
        "x": 0.14,
        "y": 0.88
      },
      "kind": "paragraph",
      "text": "Changes in Operating Assets and Liabilities",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3e0cd258-a1ea-4e11-b595-3ffe1e7b9970",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.72,
        "x": 0.14,
        "y": 0.6
      },
      "kind": "paragraph",
      "text": "Capital expenditure: Capital expenditures were based on regional direct capital expenditures estimates, plus corporate level capital expenditures. We have estimated new tower capital expenditures, maintenance and improvements, redevelopment, ground lease purchases, and other corporate level capital expenditures.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a0304b31-2d80-4497-9915-1a710102844c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.72,
        "x": 0.14,
        "y": 0.43
      },
      "kind": "paragraph",
      "text": "Depreciation: Depreciation was calculated using an 11-year life for existing assets and a 20-year life for new capital additions.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dbf176f0-c300-4593-8975-ef75fb5b150a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.72,
        "x": 0.14,
        "y": 0.5
      },
      "kind": "paragraph",
      "text": "Minority Interest: We have excluded non-wholly owned income and cash flows from our valuation. Based on our analysis, we believe the Company consolidates approximately US$40 million to US$50 million of non-wholly owned EBITDA.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e16349d8-5896-422e-8a6f-2777d89fac5e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.72,
        "x": 0.14,
        "y": 0.71
      },
      "kind": "paragraph",
      "text": "Foreign Currency Gains and Losses: Foreign currency gains and losses relate to the currency impact on intercompany loans and certain cash balances. Given the substantial declines in the foreign currencies in which the Company operates, we expect significant losses on intercompany loan and cash balances. However, because we do not have the required information to project the dollar amount of the expected losses, we highlight that if these losses come to fruition over the next year, all else being equal, the net income and other cash flow metrics in our projections would be lower by the amount of the loss (and vice versa).",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e5c9ea84-62d5-4fd5-8bb5-541f2693ea15",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.72,
        "x": 0.14,
        "y": 0.11
      },
      "kind": "paragraph",
      "text": "Consolidated Income Statement: The Regional Segment EBITDA was rolled up into a consolidated Segment EBITDA estimate. In the consolidated income statement, we included network services, and other revenues and expenses, such as employee stock options, corporate level SG&A, TV Azteca income, and certain other non cash expenses related to lease to arrive at a consolidated EBITDA estimate.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fcb34d32-3477-4338-b5a2-2c1ae96cce67",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}