CROWN CASTLE INC. — Annual Report 2017

Jun 23, 2017

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

Form 11-K

x ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2016

or

¨ TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-16441

CROWN CASTLE PUERTO RICO 1165(e) PLAN

(Full title of the plan and the address of the plan,

if different from that of the issuer named below)

CROWN CASTLE INTERNATIONAL CORP.

1220 Augusta Drive, Suite 600

Houston, Texas 77057-2261

(Name of issuer of the securities held pursuant to the

plan and the address of its principal executive office)

CROWN CASTLE PUERTO RICO 1165(e) PLAN

INDEX

	Page
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS AS OF DECEMBER 31, 201 6 AND 2015 (Unaudited)	1
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEARS ENDED DECEMBER 31, 20 16 AND 2015 (Unaudited)	2
NOTES TO FINANCIAL STATEMENTS - Unaudited	3
Note: All other schedules required by 29 CFR 2520.103-10 of the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.
SIGNATURE	9

CROWN CASTLE PUERTO RICO 1165(e) PLAN

STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (Unaudited)

DECEMBER 31, 2016 AND 2015

	2016	2015
Investments, at fair value (notes 3 and 4)	$ 1,921,926	$ 1,685,585
Receivables:
Employer cash contributions	41,544	42,797
Employer securities contributions	46,335	44,256
Notes receivable from participants	72,299	82,082
Total receivables	160,178	169,135
Net assets available for benefits	$ 2,082,104	$ 1,854,720

See accompanying notes to financial statements.

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CROWN CASTLE PUERTO RICO 1165(e) PLAN

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (Unaudited)

FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015

	2016	2015
Additions (deductions) to net assets attributed to:
Investment income (loss):
Net appreciation (depreciation) in fair value of investments	$ 76,366	$ (60,706	)
Dividends and interest	70,441	85,980
Total investment income (loss)	146,807	25,274
Contributions:
Employer cash contributions	73,267	74,134
Employer securities contributions	46,335	44,256
Participant contributions	121,794	120,410
Total contributions	241,396	238,800
Total additions (deductions)	388,203	264,074
Deductions from net assets attributed to:
Benefits paid to participants	160,819	—
Total deductions	160,819	—
Net increase (decrease)	227,384	264,074
Net assets available for benefits:
Beginning of year	1,854,720	1,590,646
End of year	$ 2,082,104	$ 1,854,720

See accompanying notes to financial statements.

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CROWN CASTLE PUERTO RICO 1165(e) PLAN

NOTES TO FINANCIAL STATEMENTS - Unaudited

December 31, 2016 and 2015

1. Plan Description

The following description of the Crown Castle Puerto Rico 1165(e) Plan (the "Plan") provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions.

(a) General

The Plan is a defined contribution plan available to eligible employees of Crown Castle Puerto Rico Corp. (the "Company"). Banco Popular de Puerto Rico ("Banco Popular") is the trustee and recordkeeper of the Plan. The Company, an indirect subsidiary of Crown Castle International Corp., is the plan administrator for the Plan. The Plan was established on October 1, 2008, and has since been amended on an as-needed basis through the date of this report. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA") and Puerto Rico income tax laws. The financial statements are not required to be audited under the applicable ERISA exemption for qualifying plans with fewer than 100 participants.

As of December 31, 2016 and 2015, there were 16 employees of the Company eligible to participate and participating in the Plan.

(b) Contributions

Employees are eligible for participation in the Plan immediately upon employment and once they are twenty-one years of age. Participants may contribute any percentage of their eligible compensation up to and including any percentage that allows the participant to reach the pre-tax contribution limit of $15,000 in both 2016 and 2015, the maximum deferral amount specified by Puerto Rico Internal Revenue Code of 1994 ("PR Code"), as amended. Participants who are age 50 and older can contribute an additional $1,500 pre-tax contribution in both 2016 and 2015 above the annual PR Code limitation. In addition, participants may make voluntary contributions to the Plan on an after-tax basis. These employee contributions are made through compensation deferral arrangements and are fully vested at all times. Participants may also contribute amounts representing distributions from other qualified plans. Participants direct the investment of their contributions into various investment options offered by the Plan. The Plan includes an auto-enrollment provision whereby all newly eligible employees who have not submitted an election to participate or not participate in the Plan are automatically enrolled in the Plan at a deferral rate of 3% and their contributions invested in a designated target date fund until changed by the participant. The deferral rate for participants who were auto enrolled increases by 1% each year until it reaches a maximum contribution of 6%, unless otherwise directed by the participant. A registered investment adviser is engaged to assist in monitoring the core investment options offered by the Plan, excluding Crown Castle International Corp. common stock ("CCIC Common Stock"). As of December 31, 2016, the Plan offered 18 mutual funds, a money market account and CCIC Common Stock as investment options.

The Company matches and contributes in cash 50% of the first 6% of compensation that a participant contributes to the Plan. In addition, discretionary amounts may be contributed at the option of the Company's board of directors. Contributions are subject to certain limitations.

The discretionary contributions for 2016 consisted of:

• A cash contribution on March 2, 2017 equal to an additional 50% of the first 6% of compensation that participants contributed to the Plan.

• A contribution of CCIC Common Stock equal to approximately 4% of each employee's annualized base salary as of December 31, 2016. On March 15, 2017, the contribution totaled 534 shares of CCIC Common Stock, with a total market price of approximately $46,335 based on the closing price per share of CCIC Common Stock as of December 31, 2016.

The discretionary contributions for 2015 consisted of:

• A cash contribution on March 8, 2016 equal to an additional 50% of the first 6% of compensation that participants contributed to the Plan.

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CROWN CASTLE PUERTO RICO 1165(e) PLAN

NOTES TO FINANCIAL STATEMENTS - Unaudited

December 31, 2016 and 2015

• A contribution of CCIC Common Stock equal to approximately 4% of each employee's annualized base salary as of December 31, 2015. On March 11, 2016, the contribution totaled 512 shares of CCIC Common Stock, with a total market price of approximately $44,256 based on the closing price per share of CCIC Common Stock as of December 31, 2015.

The discretionary securities contributions vest in the same manner as the Company's standard and annual discretionary cash matches. See "Vesting" below. Participants are able to sell such units and reinvest the proceeds into other Plan investment options at any time, even to the extent such amounts are unvested.

The Company's total discretionary contributions were $82,367 and $81,323 for the years ended December 31, 2016 and 2015, respectively.

(c) Participant Accounts

Participant accounts are maintained at fair market value. Each participant's account is credited with the participant's contribution and allocations of (1) the Company's matching and discretionary contributions and (2) Plan earnings and losses. The participant is entitled to the benefit that can be provided from the participant's vested account.

(d) Vesting

Participants are vested immediately in their contributions plus actual earnings (losses) thereon. Vesting in the Company's matching and discretionary contribution portion of their accounts is generally based on years of service. A participant is 33% vested after one year of credited service, 67% vested after two years of credited service, and 100% vested after three years of credited service. A participant automatically vests in any unvested accounts upon attainment of age 65, upon retirement due to disability, upon death and upon termination of the Plan.

(e) Notes Receivable From Participants

Participants are permitted to borrow a minimum of $1,000 up to a maximum of 50% of the vested balance or $50,000, whichever is less. The notes are secured by the balance in the participant's account and bear interest at a fixed rate of prime plus 1%. As of December 31, 2016, the interest rate on each of the notes receivable from participants was 4.25%. All notes are subject to specific repayment terms and must be repaid within a five-year period. Each participant is permitted one note at a time. No allowance for credit losses was recorded as of December 31, 2016 and 2015.

In the event of default, as described by the Plan, participants are considered to have received a distribution and are subject to income taxes on the distributed amount.

(f) Payment of Benefits

Participants are permitted to withdraw any portion of their vested account balance due to death, permanent disability, retirement, attainment of age 59 1/2, in the event of financial hardship or termination of service. The participant may elect to receive a lump-sum payment, subject to federal income tax withholdings, or rollover the vested account balance to another qualified plan. These withdrawals, prior to retirement, may result in certain suspensions of current and future participation in the Plan.

(g) Forfeitures

Company contributions and earnings (losses) thereon that have not become vested, and have been forfeited by participants in accordance with the applicable provisions of the Plan, are applied against the Company's contributions to the Plan and may be applied to reduce the administrative expenses of the Plan. There were no significant forfeited amounts applied against administrative expenses for the years ended December 31, 2016 and 2015. The forfeiture balance amounts that were unallocated to participants totaled $892 and $889 for the years ended December 31, 2016 and 2015, respectively.

(h) Administration Expenses

Plan administrative expenses, to the extent not paid by the Company, are charged to and paid from the Plan's assets as incurred. The Plan permits the application of forfeited assets to pay administrative expenses. No forfeited assets were used to pay administrative expenses during 2016 and 2015.

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CROWN CASTLE PUERTO RICO 1165(e) PLAN

NOTES TO FINANCIAL STATEMENTS - Unaudited

December 31, 2016 and 2015

(i) Termination of Plan

In the event of termination of the Plan, the plan administrator will continue to function during such period as is necessary to make remaining normal distributions and to administer and distribute the residual interests of the participants. Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants become 100% vested in their accounts. Any unallocated assets of the Plan shall be allocated to participant accounts and distributed in such a manner as may be approved by the Company's ERISA counsel and the Puerto Rico Treasury Department or other governing agencies.

(j) Risks and Uncertainties

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants' account balances and the amounts reported in the statement of net assets available for benefits. For example, as of December 31, 2016, approximately 14% of the Plan's net assets are invested in CCIC Common Stock. See note 3.

1. Summary of Significant Accounting Policies

(a) Basis of Presentation

The accompanying financial statements have been prepared on an accrual basis. Amounts payable to participants terminating participation in the Plan are included as a component of net assets available for benefits.

(b) Use of Estimates

The preparation of the financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires the plan administrator to make estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Actual results could differ from those estimates.

(c) Investment Income

Interest income from investments is recorded as earned on an accrual basis. Dividend income is recorded on the ex-dividend date.

(d) Investments and Fair Value Measurements

The Company's assets and liabilities recorded at fair value are categorized based upon a fair value hierarchy that ranks the quality and reliability of the information used to determine fair value, in accordance with applicable accounting guidance (see note 4).

The following is a description of the levels of the fair value hierarchy:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, as well as inputs other than quoted prices that are observable for the asset or liability.

• Level 3 inputs are unobservable inputs and are not corroborated by market data.

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CROWN CASTLE PUERTO RICO 1165(e) PLAN

NOTES TO FINANCIAL STATEMENTS - Unaudited

December 31, 2016 and 2015

The following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2016 and 2015.

Money market funds and equity securities: Valued at the closing price reported on the active market on which the individual securities are traded on the last business day of the Plan year.

Mutual funds: Valued at the net asset value ("NAV") of shares held by the Plan at year-end based on quoted market price on active markets on the last business day of the Plan year.

CCIC Common Stock: Valued at the closing price of the stock as reported by the New York Stock Exchange on the last business day of the Plan year.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Purchases and sales of securities are accounted for on a settlement-date basis. The difference between recording transactions on a trade date and a settlement date was not significant to the Plan's financial statements.

In accordance with the policy of stating investments at fair value, unrealized appreciation or depreciation on investments are reflected within investment income (loss) in the statement of changes in net assets available for benefits for the years ended December 31, 2016 and 2015.

(e) Contributions

Participant contributions are recorded as they are withheld from the participant's compensation.

(f) Distributions to Participants

Distributions to participants are recorded when paid by the Plan.

1. Investment Options

The following were the investment options as of December 31, 2016:

•	Artisan International Fund	•	T. Rowe Price Growth Stock Fund
•	CCIC Common Stock (a)	•	T. Rowe Price Retirement 2005 Fund
•	DFA One-Year Fixed Income Portfolio Fund	•	T. Rowe Price Retirement 2010 Fund
•	DFA Global Real Estate Fund	•	T. Rowe Price Retirement 2020 Fund
•	Gabelli U.S. Treasury Money Market Account	•	T. Rowe Price Retirement 2030 Fund
•	Invesco Growth and Income R6 Fund	•	T. Rowe Price Retirement 2040 Fund
•	JPMorgan Core Bond Fund R6 Fund	•	T. Rowe Price Retirement 2050 Fund
•	Northern Small Cap Value Fund	•	Vanguard Explorer Admiral Fund
•	PIMCO High Yield Institutional Fund	•	Vanguard Mid-Cap Index Institutional Fund
•	Schwab 1000 Index Fund	•	Vanguard Inflation Protected Admiral Securities Fund

(a) Effective June 1, 2017, participants generally may no longer direct future contributions or transfers into CCIC Common Stock.

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CROWN CASTLE PUERTO RICO 1165(e) PLAN

NOTES TO FINANCIAL STATEMENTS - Unaudited

December 31, 2016 and 2015

1. Fair Values

Investments measured at fair value on a recurring basis consisted of the following types of instruments as of December 31, 2016 and 2015.

	Assets at Fair Value as of December 31, 2016 — Level 1	Level 2	Level 3	Total
Mutual funds:
Growth funds	$ 1,070,599	$ —	$ —	$ 1,070,599
Bond funds	50,648	—	—	50,648
Value funds	132,409	—	—	132,409
Balanced funds	335,421	—	—	335,421
Total mutual funds	1,589,077	—	—	1,589,077
Money market fund:
Treasury fund	47,462	—	—	47,462
Total money market fund	47,462	—	—	47,462
CCIC Common Stock	285,387	—	—	285,387
Total	$ 1,921,926	$ —	$ —	$ 1,921,926

	Assets at Fair Value as of December 31, 2015 — Level 1	Level 2	Level 3	Total
Mutual funds:
Growth funds	$ 949,246	$ —	$ —	$ 949,246
Bond funds	62,868	—	—	62,868
Value funds	122,001	—	—	122,001
Balanced funds	267,558	—	—	267,558
Total mutual funds	1,401,673	—	—	1,401,673
Money market fund:
Treasury fund	46,607	—	—	46,607
Total money market fund	46,607	—	—	46,607
CCIC Common Stock	237,305	—	—	237,305
Total	$ 1,685,585	$ —	$ —	$ 1,685,585

There were no transfers between Level 1 and 2 in the periods presented.

1. Federal Income Tax

The Plan received a favorable determination letter from the Puerto Rico Department of Treasury dated November 5, 2013, which stated that the Plan is designed in accordance with the applicable sections of the PR Code and therefore, exempt from income taxes. Accordingly, the accompanying financial statements do not include a provision for federal income taxes.

GAAP requires plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by by federal, state or local taxing authority. The plan administrator has analyzed the tax positions taken by the Plan and has concluded that as of December 31, 2016, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.

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CROWN CASTLE PUERTO RICO 1165(e) PLAN

NOTES TO FINANCIAL STATEMENTS - Unaudited

December 31, 2016 and 2015

1. Party-In-Interest Transactions

Banco Popular is trustee and recordkeeper of the Plan. Fees paid by the Plan for the investment management services are included in net appreciation (depreciation) in fair value of investments.

The Plan invests in CCIC Common Stock. The Plan held 3,289 shares and 2,745 shares of CCIC Common Stock as of December 31, 2016 and 2015, respectively. There were purchases of CCIC Common Stock, inclusive of the employer securities contribution, totaling $72,369 and $83,275 for the year ending December 31, 2016 and 2015, respectively. There were sales of CCIC Common Stock totaling $23,865 and $1,290 for the years ending December 31, 2016 and 2015, respectively.

Notes receivable from participants totaled $ 72,299 and $ 82,082 as of December 31, 2016 and 2015, respectively, representing borrowings by the participants from their individual participant accounts.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrator for the Plan has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

CROWN CASTLE PUERTO RICO
	1165(e) PLAN
	(Name of Plan)
By:	/ s/ ROBERT S. COLLINS
	Robert S. Collins
	Vice President and Controller (Principal Accounting Officer)

Date: June 23, 2017

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