American Tower Corporation (ATC) has taken a $411.6 million (about Rs 33.74 billion) impairment charge after Vodafone Idea Limited (Vi) notified that it will not be able to resume full payments towards contractual obligations and would continue making partial payments. Considering the uncertainty with respect to amounts owed under its tenant leases when conducting annual impairment assessments for long-lived assets and goodwill in India, ATC impaired the tenant-related intangible assets for Vi, which resulted in an impairment of $411.6 million.
In addition, ATC took an additional $97 million (Rs 7.95 billion) impairment on tower and network location intangible assets in India. It, though, did not reveal if this too was related to the uncertainties around contractual payments from Vi. Further, ATC said the company’s 2023 outlook includes about $75 million (Rs 6.15 billion) incremental reserves associated with Vi in India, which will drag its adjusted funds from operations (AFFO), attributable to the company’s common stockholders per share, by $0.16.