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SEC Filings

10-Q
 filed this Form 10-Q on 10/31/2017
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Other Operating Expenses
 
 
Three Months Ended September 30,
 
Percent Increase (Decrease)
 
Nine Months Ended September 30,
 
Percent Increase (Decrease)
 
2017
 
2016
 
 
2017
 
2016
 
Other operating expenses
$
19,541

 
$
14,998

 
30
%
 
$
44,595

 
$
37,509

 
19
%

The increase in other operating expenses for the three months ended September 30, 2017 was primarily attributable to an increase in integration, acquisition and merger related expenses of $4.1 million.

The increase in other operating expenses for the nine months ended September 30, 2017 was primarily attributable to an increase of $10.9 million in losses on sales or disposals of assets and impairments, an increase in integration, acquisition and merger related expenses of $7.3 million and $10.0 million to fund our charitable foundation. These items were partially offset by aggregate purchase price refunds of $22.2 million of acquisition costs, primarily relating to an acquisition in Brazil completed in 2014.

Total Other Expense
 
Three Months Ended September 30,
 
Percent Increase (Decrease)
Nine Months Ended September 30,
 
Percent Increase (Decrease)
 
2017
 
2016
 
2017
 
2016
 
Total other expense
$
193,055

 
$
193,302

 
0
%
$
554,700

 
$
531,556

 
4
%

The slight decrease in total other expense during the three months ended September 30, 2017 was primarily due to a loss on retirement of long-term obligations of $14.2 million primarily attributable to the redemption of the 4.500% senior unsecured notes due 2018 (the “4.500% Notes”), which was more than offset by the following: foreign currency losses of $4.3 million compared to foreign currency losses of $12.4 million in the prior-year period, an additional $1.9 million in interest income compared to the prior-year period and a decrease in interest expense of $1.4 million. The reduction in interest expense was due to a 15 basis point decrease in our annualized weighted-average cost of borrowing, partially offset by a $0.6 billion increase in our average debt outstanding.

The increase in total other expense during the nine months ended September 30, 2017 was primarily due to a loss on retirement of long-term obligations of $69.9 million attributable to the redemptions of the 7.25% senior unsecured notes due 2019 (the “7.25% Notes”) and the 4.500% Notes and the repayment of the Secured Cellular Site Revenue Notes, Series 2012-2 Class A, Series 2012-2 Class B and Series 2012-2 Class C and Secured Cellular Site Revenue Notes, Series 2010-2, Class C and Series 2010-2, Class F, compared to the nine months ended September 30, 2016, where we recorded a gain on retirement of long-term obligations of $0.8 million attributable to the repayment of the Secured Tower Cellular Site Revenue Notes, Series 2012-1 Class A. The increase was also attributable to additional interest expense of $28.4 million due to a $0.8 billion increase in our average debt outstanding and a 15 basis point increase in our annualized weighted average cost of borrowing. These items were partially offset by foreign currency gains of $30.7 million compared to foreign currency losses of $29.9 million in the prior-year period, as well as an additional $10.2 million in interest income compared to the prior-year period.

Income Tax Provision
 
Three Months Ended September 30,
 
Percent Increase (Decrease)
 
Nine Months Ended September 30,
 
Percent Increase (Decrease)
 
2017
 
2016
 
 
2017
 
2016
 
Income tax provision
$
33,412

 
$
22,037

 
52
%
 
$
84,155

 
$
94,671

 
(11
)%
Effective tax rate
9.1
%
 
7.7
%
 
 
 
7.5
%
 
11.4
%
 
 

As a real estate investment trust for U.S. federal income tax purposes (“REIT”), we may deduct earnings distributed to stockholders against the income generated by our REIT operations. In addition, we are able to offset certain income by

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