American Tower Corp (ATC) has informed the US Securities and Exchange Commission (SEC) that it has taken a $322 million goodwill impairment charge for its India unit in the quarter ended September 2023, amid continuing business challenges in the country. The Boston-based telecom tower company stated in a recent SEC filing that the fair value of ATC’s India unit had dropped below its carrying amount in the September quarter. As a result, ATC recorded the goodwill impairment charge of $322 million for the three and nine months ending on September 30, 2023.

ATC added that it would continue evaluating the carrying value of its Indian assets, which could potentially lead to further impairment expenses or similar charges. In the global SEC filing, the company stated that a triggering event occurred as of September 30, 2023, due to indications of value received from third-parties. It mentioned these indications were related to ATC’s review of various strategic alternatives for its India operations, including the potential sale of equity interests.

ATC has been considering selling an equity stake in its India operation to private investors. The company has been facing payment issues with its largest Indian client, Vodafone Idea. In August 2023, it was reported that ATC is set to give up majority control in its India unit to US private equity firm I Squared Capital.

ATC’s latest SEC filing also disclosed that the carrying value of its tenant-related intangibles in India was $0.4 billion as of September 30, 2023, representing 3% of its consolidated balance. Additionally, the carrying values of its tower portfolio and network location intangibles in India were $0.9 billion and $0.3 billion, respectively, accounting for 11% and 8% of its consolidated balances.

The carrying value of goodwill in India, as of September 30, 2023, was $0.6 billion, representing 4% of its consolidated balance.