Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 19, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | T-MOBILE US, INC. | |
Trading Symbol | TMUS | |
Entity Central Index Key | 1,283,699 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 831,964,098 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 739 | $ 5,500 |
Accounts receivable, net of allowances of $86 and $102 | 1,734 | 1,896 |
Equipment installment plan receivables, net | 2,136 | 1,930 |
Accounts receivable from affiliates | 24 | 40 |
Inventories | 999 | 1,111 |
Asset purchase deposit | 0 | 2,203 |
Other current assets | 1,817 | 1,537 |
Total current assets | 7,449 | 14,217 |
Property and equipment, net | 21,570 | 20,943 |
Goodwill | 1,683 | 1,683 |
Spectrum licenses | 35,007 | 27,014 |
Other intangible assets, net | 256 | 376 |
Equipment installment plan receivables due after one year, net | 1,100 | 984 |
Other assets | 858 | 674 |
Total assets | 67,923 | 65,891 |
Current liabilities | ||
Accounts payable and accrued liabilities | 6,071 | 7,152 |
Payables to affiliates | 288 | 125 |
Short-term debt | 558 | 354 |
Deferred revenue | 790 | 986 |
Other current liabilities | 396 | 405 |
Total current liabilities | 8,103 | 9,022 |
Long-term debt | 13,163 | 21,832 |
Long-term debt to affiliates | 14,586 | 5,600 |
Tower obligations | 2,599 | 2,621 |
Deferred tax liabilities | 5,535 | 4,938 |
Deferred rent expense | 2,693 | 2,616 |
Other long-term liabilities | 967 | 1,026 |
Total long-term liabilities | 39,543 | 38,633 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity | ||
5.50% Mandatory Convertible Preferred Stock Series A, par value $0.00001 per share, 100,000,000 shares authorized; 20,000,000 and 20,000,000 shares issued and outstanding; $1,000 and $1,000 aggregate liquidation value | 0 | 0 |
Common Stock, par value $0.00001 per share, 1,000,000,000 shares authorized; 833,418,809 and 827,768,818 shares issued, 831,963,343 and 826,357,331 shares outstanding | 0 | 0 |
Additional paid-in capital | 39,058 | 38,846 |
Treasury stock, at cost, 1,455,466 and 1,411,487 shares issued | (4) | (1) |
Accumulated other comprehensive income | 4 | 1 |
Accumulated deficit | (18,781) | (20,610) |
Total stockholders' equity | 20,277 | 18,236 |
Total liabilities and stockholders' equity | $ 67,923 | $ 65,891 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Statement of Financial Position [Abstract] | ||
Allowances | $ 86,000,000 | $ 102,000,000 |
Annual dividend rate | 5.50% | 5.50% |
5.50% Mandatory convertible preferred stock series A, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
5.50% Mandatory convertible preferred stock series A, shares authorized (in shares) | 100,000,000 | 100,000,000 |
5.50% Mandatory convertible preferred stock series A, shares issued (in shares) | 20,000,000 | 20,000,000 |
5.50% Mandatory convertible preferred stock series A, shares outstanding (in shares) | 20,000,000 | 20,000,000 |
5.50% Mandatory convertible preferred stock series A, aggregate liquidation value | $ 1,000,000,000 | $ 1,000,000,000 |
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 833,418,809 | 827,768,818 |
Common stock, shares outstanding (in shares) | 831,963,343 | 826,357,331 |
Treasury stock, at cost (in shares) | 1,455,466 | 1,411,487 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | ||||
Branded postpaid revenues | $ 4,920 | $ 4,647 | $ 14,465 | $ 13,458 |
Branded prepaid revenues | 2,376 | 2,182 | 7,009 | 6,326 |
Wholesale revenues | 274 | 238 | 778 | 645 |
Roaming and other service revenues | 59 | 66 | 151 | 170 |
Total service revenues | 7,629 | 7,133 | 22,403 | 20,599 |
Equipment revenues | 2,118 | 1,948 | 6,667 | 5,987 |
Other revenues | 272 | 224 | 775 | 670 |
Total revenues | 10,019 | 9,305 | 29,845 | 27,256 |
Operating expenses | ||||
Cost of services, exclusive of depreciation and amortization shown separately below | 1,594 | 1,436 | 4,520 | 4,286 |
Cost of equipment sales | 2,617 | 2,539 | 8,149 | 7,532 |
Selling, general and administrative | 3,098 | 2,898 | 8,968 | 8,419 |
Depreciation and amortization | 1,416 | 1,568 | 4,499 | 4,695 |
Cost of MetroPCS business combination | 0 | 15 | 0 | 110 |
Gains on disposal of spectrum licenses | (29) | (199) | (67) | (835) |
Total operating expense | 8,696 | 8,257 | 26,069 | 24,207 |
Operating income | 1,323 | 1,048 | 3,776 | 3,049 |
Other income (expense) | ||||
Interest expense | (253) | (376) | (857) | (1,083) |
Interest expense to affiliates | (167) | (76) | (398) | (248) |
Interest income | 2 | 3 | 15 | 9 |
Other income (expense), net | 1 | (1) | (89) | (6) |
Total other expense, net | (417) | (450) | (1,329) | (1,328) |
Income before income taxes | 906 | 598 | 2,447 | 1,721 |
Income tax expense | (356) | (232) | (618) | (651) |
Net income | 550 | 366 | 1,829 | 1,070 |
Dividends on preferred stock | (13) | (13) | (41) | (41) |
Net income attributable to common stockholders | 537 | 353 | 1,788 | 1,029 |
Net Income | 550 | 366 | 1,829 | 1,070 |
Other comprehensive income, net of tax | ||||
Unrealized gain on available-for-sale securities, net of tax effect $0, $1, $2 and $1 | 1 | 2 | 3 | 2 |
Other comprehensive income | 1 | 2 | 3 | 2 |
Total comprehensive income | $ 551 | $ 368 | $ 1,832 | $ 1,072 |
Earnings per share | ||||
Basic (in USD per share) | $ 0.65 | $ 0.43 | $ 2.15 | $ 1.25 |
Diluted (in USD per share) | $ 0.63 | $ 0.42 | $ 2.10 | $ 1.24 |
Weighted average shares outstanding | ||||
Basic (in shares) | 831,189,779 | 822,998,697 | 829,974,146 | 821,626,675 |
Diluted (in shares) | 871,420,065 | 832,257,819 | 871,735,511 | 831,241,027 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Unrealized gain on available-for-sale securities, tax | $ 0 | $ 1 | $ 2 | $ 1 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||||
Net income | $ 550 | $ 366 | $ 1,829 | $ 1,070 |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Depreciation and amortization | 1,416 | 1,568 | 4,499 | 4,695 |
Stock-based compensation expense | 82 | 59 | 221 | 171 |
Deferred income tax expense | 347 | 219 | 595 | 623 |
Bad debt expense | 123 | 118 | 298 | 358 |
Losses from sales of receivables | 67 | 59 | 242 | 157 |
Deferred rent expense | 21 | 32 | 61 | 97 |
Gains on disposal of spectrum licenses | (29) | (199) | (67) | (835) |
Changes in operating assets and liabilities | ||||
Accounts receivable | (119) | (155) | (166) | (462) |
Equipment installment plan receivables | (154) | 104 | (520) | 556 |
Inventories | 113 | 301 | (28) | (497) |
Deferred purchase price from sales of receivables | 6 | (16) | (12) | (199) |
Other current and long-term assets | (184) | (98) | (330) | 31 |
Accounts payable and accrued liabilities | (12) | (731) | (607) | (1,568) |
Other current and long term liabilities | 60 | 112 | (84) | 326 |
Other, net | 75 | 1 | (27) | 10 |
Net cash provided by operating activities | 2,362 | 1,740 | 5,904 | 4,533 |
Investing activities | ||||
Purchases of property and equipment, including capitalized interest of $29, $17, $111 and $71 | (1,441) | (1,159) | (4,316) | (3,843) |
Purchases of spectrum licenses and other intangible assets, including deposits | (15) | (705) | (5,820) | (3,544) |
Sales of short-term investments | 0 | 0 | 0 | 2,998 |
Other, net | 1 | 5 | (2) | 3 |
Net cash used in investing activities | (1,455) | (1,859) | (10,138) | (4,386) |
Financing activities | ||||
Proceeds from issuance of long-term debt | 500 | 0 | 10,480 | 997 |
Proceeds from borrowing on revolving credit facility | 1,055 | 0 | 2,910 | 0 |
Repayments of revolving credit facility | (1,735) | 0 | (2,910) | 0 |
Repayments of capital lease obligations | (141) | (54) | (350) | (133) |
Repayments of short-term debt for purchases of inventory, property and equipment, net | (4) | 0 | (296) | (150) |
Repayments of long-term debt | 0 | (5) | (10,230) | (15) |
Tax withholdings on share-based awards | (6) | (3) | (101) | (52) |
Dividends on preferred stock | (13) | (13) | (41) | (41) |
Other, net | (5) | 8 | 11 | 17 |
Net cash (used in) provided by financing activities | (349) | (67) | (527) | 623 |
Change in cash and cash equivalents | 558 | (186) | (4,761) | 770 |
Cash and cash equivalents | ||||
Beginning of period | 181 | 5,538 | 5,500 | 4,582 |
End of period | 739 | 5,352 | 739 | 5,352 |
Supplemental disclosure of cash flow information | ||||
Interest payments, net of amounts capitalized, $0, $0, $79 and $0 of which recorded as debt discount (Note 7) | 343 | 478 | 1,565 | 1,292 |
Income tax payments | 2 | 4 | 23 | 23 |
Changes in accounts payable for purchases of property and equipment | (141) | (79) | (458) | (307) |
Leased devices transferred from inventory to property and equipment | 262 | 234 | 775 | 1,175 |
Returned leased devices transferred from property and equipment to inventory | (165) | (186) | (635) | (422) |
Issuance of short-term debt for financing of property and equipment | 1 | 0 | 291 | 150 |
Assets acquired under capital lease obligations | $ 138 | $ 384 | $ 735 | $ 679 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||||
Capitalized interest | $ 29 | $ 17 | $ 111 | $ 71 |
Discount | $ 0 | $ 0 | $ 79 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The unaudited condensed consolidated financial statements of T-Mobile US, Inc. (“T-Mobile,” “we,” “our,” “us” or the “Company”) include all adjustments of a normal recurring nature necessary for the fair presentation of the results for the interim periods presented. The results for the interim periods are not necessarily indicative of those for the full year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 . The condensed consolidated financial statements include the balances and results of operations of T-Mobile and our consolidated subsidiaries. We consolidate majority-owned subsidiaries over which we exercise control, as well as variable interest entities (“VIE”) where we are deemed to be the primary beneficiary and VIEs which cannot be deconsolidated, such as those related to Tower obligations (Tower obligations are included in VIEs related to the 2012 Tower Transaction. See Note 8 - Tower Obligations included in the Annual Report on Form 10-K for the year ended December 31, 2016 ). Intercompany transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires our management to make estimates and assumptions which affect the financial statements and accompanying notes. Estimates are based on historical experience, where applicable, and other assumptions which our management believes are reasonable under the circumstances. These estimates are inherently subject to judgment and actual results could differ from those estimates. Change in Accounting Principle Effective January 1, 2017, the imputed discount on Equipment Installment Plan (“EIP”) receivables, which is amortized over the financed installment term using the effective interest method, and was previously presented within Interest income in our Condensed Consolidated Statements of Comprehensive Income, is now presented within Other revenues in our Condensed Consolidated Statements of Comprehensive Income. We believe this presentation is preferable because it provides a better representation of amounts earned from our major ongoing operations and aligns with industry practice thereby enhancing comparability. We have applied this change retrospectively and presented the effect on the three and nine months ended September 30, 2017 and 2016 , in the tables below: Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 (in millions) Unadjusted Change in Accounting Principle As Adjusted As Filed Change in Accounting Principle As Adjusted Other revenues $ 198 $ 74 $ 272 $ 165 $ 59 $ 224 Total revenues 9,945 74 10,019 9,246 59 9,305 Operating income 1,249 74 1,323 989 59 1,048 Interest income 76 (74 ) 2 62 (59 ) 3 Total other expense, net (343 ) (74 ) (417 ) (391 ) (59 ) (450 ) Net income 550 — 550 366 — 366 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (in millions) Unadjusted Change in Accounting Principle As Adjusted As Filed Change in Accounting Principle As Adjusted Other revenues $ 571 $ 204 $ 775 $ 481 $ 189 $ 670 Total revenues 29,641 204 29,845 27,067 189 27,256 Operating income 3,572 204 3,776 2,860 189 3,049 Interest income 219 (204 ) 15 198 (189 ) 9 Total other expense, net (1,125 ) (204 ) (1,329 ) (1,139 ) (189 ) (1,328 ) Net income 1,829 — 1,829 1,070 — 1,070 The change in accounting principle did not have an impact on basic or diluted earnings per share for the three and nine months ended September 30, 2017 and 2016 , or Accumulated deficit as of September 30, 2017 or December 31, 2016 . Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), and has since modified the standard with several ASUs. The standard is effective for us, and we will adopt the standard, on January 1, 2018. The standard requires entities to recognize revenue through the application of a five-step model, which includes: identification of the contract; identification of the performance obligations; determination of the transaction price; allocation of the transaction price to the performance obligations; and recognition of revenue as the entity satisfies the performance obligations. The guidance permits two methods of adoption, the full retrospective method applying the standard to each prior reporting period presented, or the modified retrospective method with a cumulative effect of initially applying the guidance recognized at the date of initial application. The standard also allows entities to apply certain practical expedients at their discretion. We are adopting the standard using the modified retrospective method with a cumulative catch up adjustment and will provide additional disclosures comparing results to previous GAAP. We currently anticipate this standard will have a material impact on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant potential impacts include the following items: • Whether our EIP contracts contain a significant financing component, which is similar to our current practice of imputing interest, and would similarly impact the amount of revenue recognized at the time of an EIP sale and whether or not a portion of the revenue is recognized as interest and included in other revenues, rather than equipment revenues. We currently expect to recognize the financing component in our EIP contracts, including those financing components that are not considered to be significant to the contract. We believe that this application will be consistent with our current practice of imputing interest. • As we currently expense contract acquisition costs, we believe that the requirement to defer incremental contract acquisition costs and recognize them over the term of the initial contract and anticipated renewal contracts to which the costs relate will have a significant impact to our consolidated financial statements. We plan to utilize the practical expedient permitting expensing of costs to obtain a contract when the expected amortization period is one year or less which we expect will typically result in expensing commissions paid to acquire branded prepaid service contracts. Currently, we believe that incremental contract acquisition costs of approximately $450 million to $550 million that were incurred during the nine months ended September 30, 2017, which consists primarily of commissions paid to acquire branded postpaid service contracts, would require capitalization and amortization under the new standard. We expect that deferred contract costs will have an average amortization period of approximately 24 months, subject to being monitored and updated every period to reflect any significant change in assumptions. In addition, the deferred contract cost asset will be assessed for impairment on a periodic basis. • We expect that promotional bill credits offered to customers on equipment sales that are paid over time and are contingent on the customer maintaining a service contract will result in extended service contracts, which impacts the allocation and timing of revenue recognition between service revenue and equipment revenue. • Overall, with the exception of the aforementioned impacts, we do not expect that the new standard will result in a substantive change to the method of allocation of contract revenues between various services and equipment, nor to the timing of when revenues are recognized for most of our service contracts. We are still in the process of evaluating these impacts, and our initial assessment may change due to changes in the terms and mix of the contractual arrangements we have with customers. New products or offerings, or changes to current offerings may yield significantly different impacts than currently expected. We are in the process of implementing significant new revenue accounting systems, processes and internal controls over revenue recognition which will assist us in the application of the new standard. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The standard requires all lessees to report a right-of-use asset and a lease liability for most leases. The income statement recognition is similar to existing lease accounting and is based on lease classification. The standard requires lessees and lessors to classify most leases using principles similar to existing lease accounting. For lessors, the standard modifies the classification criteria and the accounting for sales-type and direct financing leases. We are currently evaluating the standard, which will require recognizing and measuring leases at the beginning of the earliest period presented using a modified retrospective approach. We plan to adopt the standard when it becomes effective for us beginning January 1, 2019, and expect the adoption of the standard will result in the recognition of right of use assets and lease liabilities that have not previously been recorded, which will have a material impact on our condensed consolidated financial statements . We are in the process of implementing significant new lease accounting systems, processes and internal controls over lease recognition which will ultimately assist in the application of the new standard. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The standard requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectibility of the reported amount. The standard will become effective for us beginning January 1, 2020, and will require a cumulative-effect adjustment to Accumulated deficit as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). Early adoption is permitted for us as of January 1, 2019. We are currently evaluating the impact this guidance will have on our condensed consolidated financial statements and the timing of adoption. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The standard is intended to reduce current diversity in practice and provides guidance on how certain cash receipts and payments are presented and classified in the statement of cash flows. The standard is effective for us, and we will adopt the standard, on January 1, 2018. The standard will require a retrospective approach. The standard will impact the presentation of cash flows related to beneficial interests in securitization transactions, which is the deferred purchase price, resulting in a reclassification of cash inflows from Operating activities to Investing activities of approximately $1.0 billion for the three months ended September 30, 2017 and 2016 , and $2.8 billion for the nine months ended September 30, 2017 and 2016 , in our condensed consolidated statement of cash flows. The standard will also impact the presentation of cash payments for debt prepayment or debt extinguishment costs, resulting in a reclassification of cash outflows from Operating activities to Financing activities of $188 million for the nine months ended September 30, 2017 , in our condensed consolidated statement of cash flows. We had no cash payments for debt prepayment or debt extinguishment costs for the three months ended September 30, 2017 . In October 2016, the FASB issued ASU 2016-16, “Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory.” The standard requires that the income tax impact of intra-entity sales and transfers of property, except for inventory, be recognized when the transfer occurs. The standard will become effective for us beginning January 1, 2018, and will require any deferred taxes not yet recognized on intra-entity transfers to be recorded to retained earnings under a modified retrospective approach. Early adoption is permitted. We are currently evaluating the standard, but expect that it will not have a material impact on our condensed consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” The standard requires entities to include in their cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. The ASU does not define the terms “restricted cash” and “restricted cash equivalents.” The standard will be effective for us beginning January 1, 2018, and will require a retrospective approach. Early adoption is permitted. We are currently evaluating the standard, but expect that it will not have a material impact on our condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The standard eliminates the requirement to measure the implied fair value of goodwill by assigning the fair value of a reporting unit to all assets and liabilities within that unit (“the Step 2 test”) from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited by the amount of goodwill in that reporting unit. The standard will become effective for us beginning January 1, 2020, and must be applied to any annual or interim goodwill impairment assessments after that date. Early adoption is permitted. We are currently evaluating the standard and timing of adoption, but expect that it will not have a material impact on our condensed consolidated financial statements. |
Significant Transactions
Significant Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Significant Transactions Disclosure [Abstract] | |
Significant Transactions | Note 2 – Significant Transactions Hurricane Impacts During the third quarter of 2017, our operations in Texas, Florida and Puerto Rico experienced losses related to hurricanes. Based on our preliminary assessment, the negative impact to operating income and net income for both the three and nine months ended September 30, 2017 , from lost revenue, assets damaged or destroyed and other hurricane related costs incurred was $148 million and $90 million , respectively. As of September 30, 2017, our loss assessment is ongoing and we expect additional expenses to be incurred and customer activity to be impacted in the fourth quarter of 2017, primarily related to our operations in Puerto Rico. We have not recognized any potential insurance recoveries related to those hurricane losses as we continue to assess the damage and work with our insurance carriers. Purchase of Iowa Wireless On September 18, 2017, we entered into a Unit Purchase Agreement (“UPA”) to acquire the remaining equity in INS Wireless, Inc. (“INS”), a 54% owned unconsolidated subsidiary, for a purchase price of $25 million . We account for our existing investment in INS under the equity method as we have significant influence, but not control. Upon the close of the transaction, which is expected within the next six months, subject to regulatory approvals and customary closing conditions, INS will become a wholly-owned consolidated subsidiary. Spectrum Transactions During the nine months ended September 30, 2017 , we entered into agreements with third parties for the exchange of certain spectrum licenses and were the winning bidder of 1,525 licenses in the 600 MHz spectrum auction. See Note 5 - Spectrum License Transactions for further information. Debt During the nine months ended September 30, 2017 , we completed significant transactions with both third parties and affiliates related to the issuance, borrowing and redemption of debt. See Note 7 - Debt for further information. Power Purchase Agreements During the nine months ended September 30, 2017 , we entered into two renewable energy purchase agreements with third parties. These agreements each consist of two components, an energy forward agreement that is net settled based on energy prices and the energy output generated by the facility and a commitment to purchase the energy credits associated with the energy output generated by the facility. See Note 10 – Commitments and Contingencies for further information. |
Equipment Installment Plan Rece
Equipment Installment Plan Receivables | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Equipment Installment Plan Receivables | Note 3 – Equipment Installment Plan Receivables We offer certain retail customers the option to pay for their devices and accessories in installments over a period of up to 24 months using an EIP. The following table summarizes the EIP receivables: (in millions) September 30, December 31, EIP receivables, gross $ 3,599 $ 3,230 Unamortized imputed discount (233 ) (195 ) EIP receivables, net of unamortized imputed discount 3,366 3,035 Allowance for credit losses (130 ) (121 ) EIP receivables, net $ 3,236 $ 2,914 Classified on the balance sheet as: Equipment installment plan receivables, net $ 2,136 $ 1,930 Equipment installment plan receivables due after one year, net 1,100 984 EIP receivables, net $ 3,236 $ 2,914 We use a proprietary credit scoring model that measures the credit quality of a customer at the time of application for mobile communications service using several factors, such as credit bureau information, consumer credit risk scores and service plan characteristics. Based upon customer credit profiles, we classify EIP receivables into the credit categories of “Prime” and “Subprime.” Prime customer receivables are those with lower delinquency risk and Subprime customer receivables are those with higher delinquency risk. Subprime customers may be required to make a down payment on their equipment purchases. In addition, certain customers within the Subprime category are required to pay an advance deposit. EIP receivables for which invoices have not yet been generated for the customer are classified as Unbilled . EIP receivables for which invoices have been generated but which are not past the contractual due date are classified as Billed – Current . EIP receivables for which invoices have been generated and the payment is past the contractual due date are classified as Billed – Past Due . The balance and aging of the EIP receivables on a gross basis by credit category were as follows: September 30, 2017 December 31, 2016 (in millions) Prime Subprime Total Prime Subprime Total Unbilled $ 1,471 $ 1,903 $ 3,374 $ 1,343 $ 1,686 $ 3,029 Billed – Current 60 90 150 51 77 128 Billed – Past Due 25 50 75 25 48 73 EIP receivables, gross $ 1,556 $ 2,043 $ 3,599 $ 1,419 $ 1,811 $ 3,230 Activity for the nine months ended September 30, 2017 and 2016 , in the unamortized imputed discount and allowance for credit losses balances for the EIP receivables was as follows: (in millions) September 30, September 30, Imputed discount and allowance for credit losses, beginning of period $ 316 $ 333 Bad debt expense 215 185 Write-offs, net of recoveries (205 ) (201 ) Change in imputed discount on short-term and long-term EIP receivables 163 103 Impacts from sales of EIP receivables (126 ) (133 ) Imputed discount and allowance for credit losses, end of period $ 363 $ 287 The EIP receivables had weighted average effective imputed interest rates of 9.7% and 9.0% as of September 30, 2017 and December 31, 2016 , respectively. |
Sales of Certain Receivables
Sales of Certain Receivables | 9 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Sales of Certain Receivables | Note 4 – Sales of Certain Receivables We have entered into transactions to sell certain service and EIP accounts receivables. The transactions, including our continuing involvement with the sold receivables and the respective impacts to our financial statements, are described below. Sales of Service Receivables Overview of the Transaction In 2014, we entered into an arrangement to sell certain service accounts receivables on a revolving basis and in November 2016, the arrangement was amended to increase the maximum funding commitment to $950 million (the “service receivable sale arrangement”) and extend the scheduled expiration date to March 2018. As of September 30, 2017 and December 31, 2016 , the service receivable sale arrangement provided funding of $899 million and $907 million , respectively. Sales of receivables occur daily and are settled on a monthly basis. The receivables consist of service charges currently due from customers and are short-term in nature. In connection with the service receivable sale arrangement, we formed a wholly-owned subsidiary, which qualifies as a bankruptcy remote entity to sell service accounts receivables (the “Service BRE”). The Service BRE does not qualify as a VIE, and due to the significant level of control we exercise over the entity, it is consolidated. Pursuant to the arrangement, certain of our wholly-owned subsidiaries transfer selected receivables to the Service BRE. The Service BRE then sells the receivables to an unaffiliated entity (the “Service VIE”), which was established to facilitate the sale of beneficial ownership interests in the receivables to certain third parties. Variable Interest Entity We determined that the Service VIE qualifies as a VIE as it lacks sufficient equity to finance its activities. We have a variable interest in the Service VIE, but are not the primary beneficiary as we lack the power to direct the activities that most significantly impact the Service VIE’s economic performance. Those activities include committing the Service VIE to legal agreements to purchase or sell assets, selecting which receivables are purchased in the service receivable sale arrangement, determining whether the Service VIE will sell interests in the purchased service receivables to other parties, funding of the entity and servicing of receivables. We do not hold the power to direct the key decisions underlying these activities. For example, while we act as the servicer of the sold receivables, which is considered a significant activity of the Service VIE, we are acting as an agent in our capacity as the servicer and the counterparty to the service receivable sale arrangement has the ability to remove us as the servicing agent of the receivables at will with no recourse available to us. As we have determined we are not the primary beneficiary, the results of the Service VIE are not consolidated into our condensed consolidated financial statements . The following table summarizes the carrying amounts and classification of assets, which consists primarily of the deferred purchase price and liabilities included in our Condensed Consolidated Balance Sheets that relate to our variable interest in the Service VIE: (in millions) September 30, December 31, Other current assets $ 225 $ 207 Accounts payable and accrued liabilities 13 17 Other current liabilities 155 129 Sales of EIP Receivables Overview of the Transaction In 2015, we entered into an arrangement to sell certain EIP accounts receivables on a revolving basis and in August 2017, the EIP sale arrangement was amended to reduce the maximum funding commitment to $1.2 billion (the “EIP sale arrangement”) and extend the scheduled expiration date to November 2018. As of both September 30, 2017 and December 31, 2016 , the EIP sale arrangement provided funding of $1.2 billion . Sales of EIP receivables occur daily and are settled on a monthly basis. The receivables consist of customer EIP balances, which require monthly customer payments for up to 24 months. In connection with this EIP sale arrangement, we formed a wholly-owned subsidiary, which qualifies as a bankruptcy remote entity (the “EIP BRE”). Pursuant to the EIP sale arrangement, our wholly-owned subsidiary transfers selected receivables to the EIP BRE. The EIP BRE then sells the receivables to a non-consolidated and unaffiliated third-party entity for which we do not exercise any level of control, nor does the entity qualify as a VIE. Variable Interest Entity We determined that the EIP BRE is a VIE as its equity investment at risk lacks the obligation to absorb a certain portion of its expected losses. We have a variable interest in the EIP BRE and determined that we are the primary beneficiary based on our ability to direct the activities which most significantly impact the EIP BRE’s economic performance. Those activities include selecting which receivables are transferred into the EIP BRE and sold in the EIP sale arrangement and funding of the EIP BRE. Additionally, our equity interest in the EIP BRE obligates us to absorb losses and gives us the right to receive benefits from the EIP BRE that could potentially be significant to the EIP BRE. Accordingly, we determined that we are the primary beneficiary, and include the balances and results of operations of the EIP BRE in our condensed consolidated financial statements . The following table summarizes the carrying amounts and classification of assets, which consists primarily of the deferred purchase price and liabilities included in our Condensed Consolidated Balance Sheets that relate to the EIP BRE: (in millions) September 30, December 31, Other current assets $ 357 $ 371 Other assets 90 83 Other long-term liabilities 2 4 In addition, the EIP BRE is a separate legal entity with its own separate creditors who will be entitled, prior to any liquidation of the EIP BRE, to be satisfied prior to any value in the EIP BRE becoming available to us. Accordingly, the assets of the EIP BRE may not be used to settle our general obligations and creditors of the EIP BRE have limited recourse to our general credit. Sales of Receivables The transfers of service receivables and EIP receivables to the non-consolidated entities are accounted for as sales of financial assets. Once identified for sale, the receivable is recorded at the lower of cost or fair value. Upon sale, we derecognize the net carrying amount of the receivables. We recognize the net cash proceeds in Net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows . The proceeds are net of the deferred purchase price, consisting of a receivable from the purchasers that entitles us to certain collections on the receivables. We recognize the collection of the deferred purchase price in Net cash provided by operating activities as it is dependent on collection of the customer receivables and is not subject to significant interest rate risk. The deferred purchase price represents a financial asset that is primarily tied to the creditworthiness of the customers and which can be settled in such a way that we may not recover substantially all of our recorded investment, due to default by the customers on the underlying receivables. We elected, at inception, to measure the deferred purchase price at fair value with changes in fair value included in Selling, general and administrative expense in our Condensed Consolidated Statements of Comprehensive Income . The fair value of the deferred purchase price is determined based on a discounted cash flow model which uses primarily unobservable inputs (Level 3 inputs), including customer default rates. As of September 30, 2017 and December 31, 2016 , our deferred purchase price related to the sales of service receivables and EIP receivables was $671 million and $659 million , respectively. The following table summarizes the impacts of the sale of certain service receivables and EIP receivables in our Condensed Consolidated Balance Sheets : (in millions) September 30, December 31, Derecognized net service receivables and EIP receivables $ 2,362 $ 2,502 Other current assets 582 578 of which, deferred purchase price 581 576 Other long-term assets 90 83 of which, deferred purchase price 90 83 Accounts payable and accrued liabilities 13 17 Other current liabilities 155 129 Other long-term liabilities 2 4 Net cash proceeds since inception 1,963 2,030 Of which: Change in net cash proceeds during the year-to-date period (67 ) 536 Net cash proceeds funded by reinvested collections 2,030 1,494 We recognized losses from sales of receivables of $67 million and $59 million for the three months ended September 30, 2017 and 2016 , respectively, and $242 million and $157 million for the nine months ended September 30, 2017 and 2016 , respectively. These losses from sales of receivables were recognized in Selling, general and administrative expense in our Condensed Consolidated Statements of Comprehensive Income . Losses from sales of receivables include adjustments to the receivables’ fair values and changes in fair value of the deferred purchase price. Continuing Involvement Pursuant to the sale arrangements described above, we have continuing involvement with the service receivables and EIP receivables we sell as we service the receivables and are required to repurchase certain receivables, including ineligible receivables, aged receivables and receivables where write-off is imminent. We continue to service the customers and their related receivables, including facilitating customer payment collection, in exchange for a monthly servicing fee. As the receivables are sold on a revolving basis, the customer payment collections on sold receivables may be reinvested in new receivable sales. While servicing the receivables, we apply the same policies and procedures to the sold receivables as we apply to our owned receivables, and we continue to maintain normal relationships with our customers. Pursuant to the EIP sale arrangement, under certain circumstances, we are required to deposit cash or replacement EIP receivables primarily for contracts terminated by customers under our Just Upgrade My Phone (“JUMP!”) Program. In addition, we have continuing involvement with the sold receivables as we may be responsible for absorbing additional credit losses pursuant to the sale arrangements. Our maximum exposure to loss related to the involvement with the service receivables and EIP receivables sold under the sale arrangements was $1.2 billion as of September 30, 2017 . The maximum exposure to loss, which is a required disclosure under GAAP, represents an estimated loss that would be incurred under severe, hypothetical circumstances whereby we would not receive the deferred purchase price portion of the contractual proceeds withheld by the purchasers and would also be required to repurchase the maximum amount of receivables pursuant to the sale arrangements without consideration for any recovery. As we believe the probability of these circumstances occurring is remote, the maximum exposure to loss is not an indication of our expected loss. |
Spectrum License Transactions
Spectrum License Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Spectrum License Transactions | Note 5 – Spectrum License Transactions The following table summarizes our spectrum license activity during the nine months ended September 30, 2017 : (in millions) Spectrum Licenses Balance at December 31, 2016 $ 27,014 Spectrum license acquisitions 8,247 Spectrum licenses transferred to held for sale (271 ) Costs to clear spectrum 17 Balance at September 30, 2017 $ 35,007 Spectrum License Exchange In March 2017, we closed on an agreement with a third party for the exchange of certain spectrum licenses. Upon closing of the transaction, we recorded the spectrum licenses received at their estimated fair value of approximately $123 million and recognized a gain of $37 million included in Gains on disposal of spectrum licenses in our Condensed Consolidated Statements of Comprehensive Income . In September 2017, we closed on an agreement with a third party for the exchange of certain AWS and PCS spectrum licenses. Upon closing of the transaction, we recorded the spectrum licenses received at their estimated fair value of approximately $115 million and recognized a gain of $29 million included in Gains on disposal of spectrum licenses in our Condensed Consolidated Statements of Comprehensive Income . In September 2017, we entered into an agreement with a third party for the exchange of certain AWS and PCS spectrum licenses. The transaction is expected to close during the first quarter of 2018, subject to regulatory approvals and customary closing conditions. Our spectrum licenses to be transferred as part of the exchange transaction were reclassified as assets held for sale and were included in Other current assets in our Condensed Consolidated Balance Sheets at their carrying value of $184 million as of September 30, 2017 . Spectrum License Purchase In September 2017, we entered into a UPA to purchase the remaining equity of INS. We expect to receive the INS spectrum licenses at the close of the transaction within the next 6 months, subject to regulatory approvals and customary closing conditions. See Note 2 - Significant Transactions for further information. Broadcast Incentive Auction In April 2017, the Federal Communications Commission (the “FCC”) announced that we were the winning bidder of 1,525 licenses in the 600 MHz spectrum auction for an aggregate price of $8.0 billion . At inception of the auction in June 2016, we deposited $2.2 billion with the FCC which, based on the outcome of the auction, was sufficient to cover our down payment obligation due in April 2017. In May 2017, we paid the FCC the remaining $5.8 billion of the purchase price using cash reserves and by issuing debt to Deutsche Telekom AG (“DT”), our majority stockholder, pursuant to existing purchase commitments. See Note 7 - Debt for further information. The licenses are included in Spectrum licenses as of September 30, 2017 , on our Condensed Consolidated Balance Sheets . We began deployment of these licenses on our network in the third quarter of 2017 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 6 – Fair Value Measurements The carrying values of cash and cash equivalents, short-term investments, accounts receivable, accounts receivable from affiliates, accounts payable, and borrowings under our senior secured revolving credit facility with DT approximate fair value due to the short-term maturities of these instruments. Assets and Liabilities Measured at Fair Value on a Recurring Basis The carrying amounts and fair values of our assets and liabilities measured at fair value on a recurring basis included in our Condensed Consolidated Balance Sheets were as follows: Level within the Fair Value Hierarchy September 30, 2017 December 31, 2016 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Assets: Deferred purchase price assets 3 $ 671 $ 671 $ 659 $ 659 Liabilities: Guarantee liabilities 3 121 121 135 135 The principal amounts and fair values of our long-term debt included in our Condensed Consolidated Balance Sheets were as follows: Level within the Fair Value Hierarchy September 30, 2017 December 31, 2016 (in millions) Principal Amount Fair Value Principal Amount Fair Value Liabilities: Senior Notes to third parties 1 $ 11,850 $ 12,605 $ 18,600 $ 19,584 Senior Notes to affiliates 2 7,500 7,897 — — Incremental Term Loan Facility to affiliates 2 4,000 4,020 — — Senior Reset Notes to affiliates 2 3,100 3,290 5,600 5,955 Senior Secured Term Loans 2 — — 1,980 2,005 Long-term Debt The fair value of our Senior Notes to third parties was determined based on quoted market prices in active markets, and therefore was classified as Level 1 within the fair value hierarchy. The fair values of the Senior Notes to affiliates , Incremental Term Loan Facility to affiliates , Senior Reset Notes to affiliates and Senior Secured Term Loans were determined based on a discounted cash flow approach using quoted prices of instruments with similar terms and maturities and an estimate for our standalone credit risk. Accordingly, our Senior Notes to affiliates , Incremental Term Loan Facility to affiliates , Senior Reset Notes to affiliates and Senior Secured Term Loans were classified as Level 2 within the fair value hierarchy. Although we have determined the estimated fair values using available market information and commonly accepted valuation methodologies, considerable judgment was required in interpreting market data to develop fair value estimates for the Senior Notes to affiliates , Incremental Term Loan Facility to affiliates , Senior Reset Notes to affiliates and Senior Secured Term Loans to affiliates. The fair value estimates were based on information available as of September 30, 2017 and December 31, 2016 . As such, our estimates are not necessarily indicative of the amount we could realize in a current market exchange. Deferred Purchase Price Assets In connection with the sales of certain service and EIP receivables pursuant to the sale arrangements, we have deferred purchase price assets measured at fair value that are based on a discounted cash flow model using unobservable Level 3 inputs, including customer default rates. See Note 4 – Sales of Certain Receivables for further information . Guarantee Liabilities We offer certain device trade-in programs, including JUMP!, which provide eligible customers a specified-price trade-in right to upgrade their device. For customers who are enrolled in a device trade-in program, we defer the portion of equipment revenues which represents the estimated fair value of the specified-price trade-in right guarantee incorporating the expected probability and timing of the handset upgrade and the estimated fair value of the used handset which is returned. Accordingly, our guarantee liabilities were classified as Level 3 within the fair value hierarchy. When customers upgrade their device, the difference between the trade-in credit to the customer and the fair value of the returned device is recorded against the guarantee liabilities. Guarantee liabilities are included in Other current liabilities in our Condensed Consolidated Balance Sheets . The total estimated remaining gross EIP receivable balances of all enrolled handset upgrade program customers, which are the remaining EIP amounts underlying the JUMP! guarantee, including EIP receivables that have been sold, was $2.2 billion as of September 30, 2017 . This is not an indication of our expected loss exposure as it does not consider the expected fair value of the used handset or the probability and timing of the trade-in. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Note 7 – Debt The following table sets forth the debt balances and activity as of, and for the nine months ended , September 30, 2017 : (in millions) December 31, Issuances and Borrowings (1) Note Redemptions (1) Extinguishments (1) Repayments Other (2) September 30, Short-term debt $ 354 $ — $ — $ (20 ) $ — $ 224 $ 558 Long-term debt 21,832 1,495 (8,365 ) (1,947 ) — 148 13,163 Total debt to third parties 22,186 1,495 (8,365 ) (1,967 ) — 372 13,721 Short-term debt to affiliates — 2,910 — — (2,910 ) — — Long-term debt to affiliates 5,600 8,985 — — — 1 14,586 Total debt to affiliates 5,600 11,895 — — (2,910 ) 1 14,586 Total debt $ 27,786 $ 13,390 $ (8,365 ) $ (1,967 ) $ (2,910 ) $ 373 $ 28,307 (1) Issuances and borrowings, note redemptions and extinguishments are recorded net of related issuance costs, discounts and premiums. Issuances and borrowings for Short-term debt to affiliates represent net outstanding borrowings on our senior secured revolving credit facility. (2) Other includes: $299 million of issuances of short-term debt related to vendor financing arrangements, of which $291 million is related to financing of property and equipment. During the nine months ended September 30, 2017 , we repaid $296 million under the vendor financing arrangements. As of September 30, 2017 , vendor financing arrangements totaled $3 million . Vendor financing arrangements are included in Short-term debt within Total current liabilities in our Condensed Consolidated Balance Sheets . Additional activity in Other includes capital leases and the amortization of discounts and premiums. As of September 30, 2017 and December 31, 2016 , capital lease liabilities totaled $1.8 billion and $1.4 billion , respectively. Debt to Third Parties Issuances and Borrowings During the nine months ended September 30, 2017 , we issued the following Senior Notes: (in millions) Principal Issuances Issuance Costs Net Proceeds from Issuance of Long-Term Debt 4.000% Senior Notes due 2022 $ 500 $ 2 $ 498 5.125% Senior Notes due 2025 500 2 498 5.375% Senior Notes due 2027 500 1 499 Total of Senior Notes Issued $ 1,500 $ 5 $ 1,495 On March 16, 2017, T-Mobile USA and certain of its affiliates, as guarantors, issued a total of $1.5 billion of public Senior Notes with various interest rates and maturity dates. Issuance costs related to the public debt issuance totaled $5 million for the nine months ended September 30, 2017 . We used the net proceeds of $1.495 billion from the transaction to redeem callable high yield debt. Notes Redemptions During the nine months ended September 30, 2017 , we made the following note redemptions: (in millions) Principal Amount Write-off of Premiums, Discounts and Issuance Costs (1) Call Penalties (1) (2) Redemption Redemption Price 6.625% Senior Notes due 2020 $ 1,000 $ (45 ) $ 22 February 10, 2017 102.208 % 5.250% Senior Notes due 2018 500 1 7 March 4, 2017 101.313 % 6.250% Senior Notes due 2021 1,750 (71 ) 55 April 1, 2017 103.125 % 6.464% Senior Notes due 2019 1,250 — — April 28, 2017 100.000 % 6.542% Senior Notes due 2020 1,250 — 21 April 28, 2017 101.636 % 6.633% Senior Notes due 2021 1,250 — 41 April 28, 2017 103.317 % 6.731% Senior Notes due 2022 1,250 — 42 April 28, 2017 103.366 % Total note redemptions $ 8,250 $ (115 ) $ 188 (1) Write-off of premiums, discounts, issuance costs and call penalties are included in Other income (expense), net in our Condensed Consolidated Statements of Comprehensive Income . Write-off of premiums, discounts and issuance costs are included in Other, net within Net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows . (2) The call penalty is the excess paid over the principal amount. Call penalties are included within Net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows . Debt to Affiliates Issuances and Borrowings During the nine months ended September 30, 2017 , we made the following borrowings: (in millions) Net Proceeds from Issuance of Long-Term Debt Extinguishments Write-off of Discounts and Issuance Costs (1) LIBOR plus 2.00% Senior Secured Term Loan due 2022 $ 2,000 $ — $ — LIBOR plus 2.00% Senior Secured Term Loan due 2024 2,000 — — LIBOR plus 2.750% Senior Secured Term Loan (2) — (1,980 ) 13 Total $ 4,000 $ (1,980 ) $ 13 (1) Write-off of discounts and issuance costs are included in Other income (expense), net in our Condensed Consolidated Statements of Comprehensive Income and Other, net within Net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows . (2) Our Senior Secured Term Loan extinguished during the nine months ended September 30, 2017 was Third Party debt. On January 25, 2017, T-Mobile USA, Inc. (“T-Mobile USA”), and certain of its affiliates, as guarantors, entered into an agreement to borrow $4.0 billion under a secured term loan facility (“Incremental Term Loan Facility”) with DT, our majority stockholder, to refinance $1.98 billion of outstanding senior secured term loans under its Term Loan Credit Agreement dated November 9, 2015, with the remaining net proceeds from the transaction used to redeem callable high yield debt. The Incremental Term Loan Facility increased DT’s incremental term loan commitment provided to T-Mobile USA under that certain First Incremental Facility Amendment dated as of December 29, 2016, from $660 million to $2.0 billion and provided T-Mobile USA with an additional $2.0 billion incremental term loan commitment. On January 31, 2017, the loans under the Incremental Term Loan Facility were drawn in two tranches: (i) $2.0 billion of which bears interest at a rate equal to a per annum rate of LIBOR plus a margin of 2.00% and matures on November 9, 2022, and (ii) $2.0 billion of which bears interest at a rate equal to a per annum rate of LIBOR plus a margin of 2.25% and matures on January 31, 2024. In July 2017, we repriced the $2.0 billion Incremental Term Loan Facility maturing on January 31, 2024, with DT by reducing the interest rate to a per annum rate of LIBOR plus a margin of 2.00% . No issuance fees were incurred related to this debt agreement for the nine months ended September 30, 2017 . On March 31, 2017, the Incremental Term Loan Facility was amended to waive all interim principal payments. The outstanding principal balance will be due at maturity. During the nine months ended September 30, 2017 , we issued the following Senior Notes to DT: (in millions) Principal Issuances (Redemptions) Discounts (1) Net Proceeds from Issuance of Long-Term Debt 4.000% Senior Notes due 2022 $ 1,000 $ (23 ) $ 977 5.125% Senior Notes due 2025 1,250 (28 ) 1,222 5.375% Senior Notes due 2027 (2) 1,250 (28 ) 1,222 6.288% Senior Reset Notes due 2019 (1,250 ) — (1,250 ) 6.366% Senior Reset Notes due 2020 (1,250 ) — (1,250 ) Total $ 1,000 $ (79 ) $ 921 (1) Discounts reduce Proceeds from issuance of long-term debt and are included within Net cash (used in) provided by financing activities in our Condensed Consolidated Statements of Cash Flows . (2) In April 2017, we issued to DT $750 million in aggregate principal amount of the 5.375% Senior Notes due 2027 , and in September 2017, we issued to DT the remaining $500 million in aggregate principal amount of the 5.375% Senior Notes due 2027 . On March 13, 2017, DT agreed to purchase a total of $3.5 billion in aggregate principal amounts of Senior Notes with various interest rates and maturity dates (the “new DT Notes”). Through net settlement in April 2017, we issued to DT a total of $3.0 billion in aggregate principal amount of the new DT Notes and redeemed the $2.5 billion in outstanding aggregate principal amount of Senior Reset Notes with various interest rates and maturity dates (the “old DT Notes”). The redemption prices of the old DT Notes were 103.144% and 103.183% , resulting in a total of $79 million in early redemption fees. These early redemption fees were recorded as discounts on the issuance of the new DT Notes. In September 2017, we issued to DT $500 million in aggregate principal amount of 5.375% Senior Notes due 2027 , which is the final tranche of the new DT Notes. We were not required to pay any underwriting fees or issuance costs in connection with the issuance of the notes. Net proceeds from the issuance of the new DT Notes were $921 million and are included in Proceeds from issuance of long-term debt in our Condensed Consolidated Statements of Cash Flows . On May 9, 2017, we exercised our option under existing purchase agreements and issued the following Senior Notes to DT: (in millions) Principal Issuances Premium Net Proceeds from Issuance of Long-Term Debt 5.300% Senior Notes due 2021 $ 2,000 $ — $ 2,000 6.000% Senior Notes due 2024 1,350 40 1,390 6.000% Senior Notes due 2024 650 24 674 Total $ 4,000 $ 64 $ 4,064 The proceeds were used to fund a portion of the purchase price of spectrum licenses won in the 600 MHz spectrum auction. Net proceeds from these issuances include $64 million in debt premiums. See Note 5 - Spectrum License Transactions for further information. Revolving Credit Facility We had no outstanding borrowings under our $1.5 billion senior secured revolving credit facility with DT as of September 30, 2017 and December 31, 2016 . Proceeds and borrowings from the revolving credit facility are presented in Proceeds from borrowing on revolving credit facility and Repayments of revolving credit facility within Net cash (used in) provided by financing activities in our Condensed Consolidated Statements of Cash Flows . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 – Income Taxes Within our Condensed Consolidated Statements of Comprehensive Income , we recorded an Income tax expense of $356 million and $232 million for the three months ended September 30, 2017 and 2016 , respectively, and $618 million and $651 million for the nine months ended September 30, 2017 and 2016 , respectively. The change for the three months ended September 30, 2017 was primarily from higher income before income taxes. The change for the nine months ended September 30, 2017 was primarily from a lower effective tax rate partially offset by higher income before income taxes. The effective tax rate was 39.3% and 38.8% for the three months ended September 30, 2017 and 2016 , respectively, and 25.3% and 37.8% for the nine months ended September 30, 2017 and 2016 , respectively. The change in the effective income tax rate for the nine months ended September 30, 2017 , was primarily due to a reduction in the valuation allowance against deferred tax assets in certain state jurisdictions that resulted in the recognition of $270 million in tax benefits in the first quarter of 2017 and the recognition of an additional $19 million in tax benefits through the third quarter of 2017 . Total tax benefits related to the reduction in the valuation allowance were $289 million through September 30, 2017 . The effective tax rate was further decreased by the recognition of $62 million of excess tax benefits related to share-based payments for the nine months ended September 30, 2017 , compared to $24 million for the same period in 2016 . During the first quarter of 2017 , due to ongoing analysis of positive and negative evidence related to the utilization of the deferred tax assets, we determined that a portion of the valuation allowance was no longer necessary. Positive evidence supporting the release of a portion of the valuation allowance included reaching a position of cumulative income over a three-year period in the state jurisdictions as well as projecting sustained earnings in those jurisdictions. Due to this positive evidence, we reduced the valuation allowance which resulted in a decrease to Deferred tax liabilities in our Condensed Consolidated Balance Sheets . We will continue to monitor positive and negative evidence related to the utilization of the remaining deferred tax assets for which a valuation allowance continues to be provided. It is possible that we may release additional portions of the remaining valuation allowance within the next three months. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9 – Earnings Per Share The computation of basic and diluted earnings per share was as follows: Three Months Ended September 30, Nine Months Ended September 30, (in millions, except shares and per share amounts) 2017 2016 2017 2016 Net income $ 550 $ 366 $ 1,829 $ 1,070 Less: Dividends on mandatory convertible preferred stock (13 ) (13 ) (41 ) (41 ) Net income attributable to common stockholders - basic 537 353 1,788 1,029 Add: Dividends related to mandatory convertible preferred stock 13 — 41 — Net income attributable to common stockholders - diluted $ 550 $ 353 $ 1,829 $ 1,029 Weighted average shares outstanding - basic 831,189,779 822,998,697 829,974,146 821,626,675 Effect of dilutive securities: Outstanding stock options and unvested stock awards 7,992,286 9,259,122 9,523,365 9,614,352 Mandatory convertible preferred stock 32,238,000 — 32,238,000 — Weighted average shares outstanding - diluted 871,420,065 832,257,819 871,735,511 831,241,027 Earnings per share - basic $ 0.65 $ 0.43 $ 2.15 $ 1.25 Earnings per share - diluted $ 0.63 $ 0.42 $ 2.10 $ 1.24 Potentially dilutive securities: Outstanding stock options and unvested stock awards — 278,675 4,760 287,375 Mandatory convertible preferred stock — 32,238,000 — 32,238,000 Unless converted earlier, each share of preferred stock will convert automatically on December 15, 2017 into between 1.6119 (the minimum conversion rate) and 1.9342 (the maximum conversion rate) shares of our common stock, subject to customary anti-dilution adjustments and depending on the applicable market value of our common stock. Using the minimum conversion rate, we would issue 32,238,000 shares of our common stock upon conversion. Potentially dilutive securities were not included in the computation of diluted earnings per share if to do so would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 – Commitments and Contingencies Commitments Operating Leases and Purchase Commitments During the nine months ended September 30, 2017, we entered into a purchase commitment with a handset Original Equipment Manufacturer, resulting in a material increase to the future minimum payments for purchase commitments summarized below. Future minimum payments for non-cancelable operating leases and purchase commitments are as follows: (in millions) Operating Leases Purchase Commitments Year ending September 30, 2018 $ 2,397 $ 2,477 2019 2,153 1,210 2020 1,867 1,015 2021 1,472 759 2022 1,163 661 Thereafter 2,240 904 Total $ 11,292 $ 7,026 Renewable Energy Purchase Agreements In January 2017, T-Mobile USA entered into a REPA with Red Dirt Wind Project, LLC. The agreement is based on the expected operation of a wind energy-generating facility located in Oklahoma and will remain in effect until the twelfth anniversary of the facility’s entry into commercial operation. Commercial operation of the facility is expected to occur by the end of 2017. The REPA consists of two components: (1) an energy forward agreement that is net settled based on energy prices and the energy output generated by the facility and (2) a commitment to purchase the renewable energy credits (“RECs”) associated with the energy output generated by the facility. T-Mobile USA will net settle the forward agreement and acquire the RECs monthly by paying, or receiving, an aggregate net payment based on two variables (1) the facility’s energy output, which has an estimated maximum capacity of approximately 160 megawatts and (2) the difference between (a) an initial fixed price, subject to annual escalation, and (b) current local marginal energy prices during the monthly settlement period. We have determined that the REPA does not meet the definition of a derivative because the expected energy output of the facility may not be reliably estimated (the arrangement lacks a notional amount). The REPA does not contain any unconditional purchase obligations because amounts under the agreement are not fixed and determinable. Our participation in the REPA did not require an upfront investment or capital commitment. We do not control the activities that most significantly impact the energy-generating facility nor do we receive specific energy output from it. No amounts were settled under the agreement during the nine months ended September 30, 2017 . In August 2017, T-Mobile USA entered into a REPA with Solomon Forks Wind Project, LLC. The agreement is based on the expected operation of a wind energy-generating facility located in Kansas and will remain in effect until the fifteenth anniversary of the facility’s entry into commercial operation. Commercial operation of the facility is expected to occur by the end of 2018. The REPA consists of two components: (1) an energy forward agreement that is net settled based on energy prices and the energy output generated by the facility and (2) a commitment to purchase the environmental attributes (“EACs”) associated with the energy output generated by the facility. T-Mobile USA will net settle the forward agreement and acquire the EACs monthly by paying, or receiving, an aggregate net payment based on two variables (1) the facility’s energy output, which has an estimated maximum capacity of approximately 160 megawatts and (2) the difference between (a) an initial fixed price, subject to annual escalation, and (b) current local marginal energy prices during the monthly settlement period. We have determined that the REPA does not meet the definition of a derivative because the expected energy output of the facility may not be reliably estimated (the arrangement lacks a notional amount). The REPA does not contain any unconditional purchase obligations because amounts under the agreement are not fixed and determinable. Our participation in the REPA did not require an upfront investment or capital commitment. We do not control the activities that most significantly impact the energy-generating facility nor do we receive specific energy output from it. No amounts were settled under the agreement during the nine months ended September 30, 2017 . Contingencies and Litigation We are involved in various lawsuits, claims, government agency investigations and enforcement actions, and other proceedings (“Litigation Matters”) that arise in the ordinary course of business, which include numerous court actions alleging that we are infringing various patents. Virtually all of the patent infringement cases are brought by non-practicing entities and effectively seek only monetary damages, although they occasionally seek injunctive relief as well. The Litigation Matters described above have progressed to various stages and some of them may proceed to trial, arbitration, hearing or other adjudication that could include an award of monetary or injunctive relief in the coming 12 months, if they are not otherwise resolved. We have established an accrual with respect to certain of these matters, where appropriate, which is reflected in the condensed consolidated financial statements but that we do not consider, individually or in the aggregate, material. An accrual is established when we believe it is both probable that a loss has been incurred and an amount can be reasonably estimated. For other matters, where we have not determined that a loss is probable or because the amount of loss cannot be reasonably estimated, we have not recorded an accrual due to various factors typical in contested proceedings, including but not limited to: uncertainty concerning legal theories and their resolution by courts or regulators; uncertain damage theories and demands; and a less than fully developed factual record. While we do not expect that the ultimate resolution of these proceedings, individually or in the aggregate, will have a material adverse effect on our financial position, an unfavorable outcome of some or all of these proceedings could have a material adverse impact on results of operations or cash flows for a particular period. This assessment is based on our current understanding of relevant facts and circumstances. As such, our view of these matters is subject to inherent uncertainties and may change in the future. |
Guarantor Financial Information
Guarantor Financial Information | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Guarantor Financial Information | Note 11 – Guarantor Financial Information Pursuant to the applicable indentures and supplemental indentures, the long-term debt to affiliates and third parties, excluding Senior Secured Term Loans and capital leases, issued by T-Mobile USA (“Issuer”) is fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by T-Mobile (“Parent”) and certain of the Issuer’s 100% owned subsidiaries (“Guarantor Subsidiaries”). In January 2017, T-Mobile USA, and certain of its affiliates, as guarantors, borrowed $4.0 billion under the Incremental Term Loan Facility to refinance $1.98 billion of outstanding secured term loans under its Term Loan Credit Agreement dated November 9, 2015, with the remaining net proceeds from the transaction intended to be used to redeem callable high yield debt. In March 2017, T-Mobile USA and certain of its affiliates, as guarantors, (i) issued $500 million in aggregate principal amount of public 4.000% Senior Notes due 2022 , (ii) issued $500 million in aggregate principal amount of public 5.125% Senior Notes due 2025 and (iii) issued $500 million in aggregate principal amount of public 5.375% Senior Notes due 2027 . In April 2017, T-Mobile USA and certain of its affiliates, as guarantors, (i) issued $1.0 billion in aggregate principal amount of 4.000% Senior Notes due 2022 , (ii) issued $1.25 billion in aggregate principal amount of 5.125% Senior Notes due 2025 and (iii) issued $750 million in aggregate principal amount of 5.375% Senior Notes due 2027 . Additionally, T-Mobile USA and certain of its affiliates, as guarantors, redeemed through net settlement, the $1.25 billion outstanding aggregate principal amount of the 6.288% Senior Reset Notes to affiliates due 2019 and $1.25 billion in aggregate principal amount of the 6.366% Senior Reset Notes to affiliates due 2020. In May 2017, T-Mobile USA and certain of its affiliates, as guarantors, (i) issued $2.0 billion in aggregate principal amount of 5.300% Senior Notes due 2021 , (ii) issued $1.35 billion in aggregate principal amount of 6.000% Senior Notes due 2024 and (iii) issued $650 million in aggregate principal amount of 6.000% Senior Notes due 2024 . In September 2017, T-Mobile USA and certain of its affiliates, as guarantors, issued the remaining $500 million in aggregate principal amount of 5.375% Senior Notes due 2027 . See Note 7 - Debt for further information. The guarantees of the Guarantor Subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. The indentures and credit facilities governing the long-term debt contain covenants that, among other things, limit the ability of the Issuer and the Guarantor Subsidiaries to: incur more debt; pay dividends and make distributions; make certain investments; repurchase stock; create liens or other encumbrances; enter into transactions with affiliates; enter into transactions that restrict dividends or distributions from subsidiaries; and merge, consolidate, or sell, or otherwise dispose of, substantially all of their assets. Certain provisions of each of the credit facilities, indentures and supplemental indentures relating to the long-term debt restrict the ability of the Issuer to loan funds or make payments to Parent. However, the Issuer and Guarantor Subsidiaries are allowed to make certain permitted payments to the Parent under the terms of the indentures and the supplemental indentures. Presented below is the condensed consolidating financial information as of September 30, 2017 and December 31, 2016 , and for the three and nine months ended September 30, 2017 and 2016 . Condensed Consolidating Balance Sheet Information September 30, 2017 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Assets Current assets Cash and cash equivalents $ 29 $ 2 $ 678 $ 30 $ — $ 739 Accounts receivable, net — — 1,504 230 — 1,734 Equipment installment plan receivables, net — — 2,136 — — 2,136 Accounts receivable from affiliates — 6 24 — (6 ) 24 Inventories — — 999 — — 999 Other current assets — — 1,241 576 — 1,817 Total current assets 29 8 6,582 836 (6 ) 7,449 Property and equipment, net (1) — — 21,248 322 — 21,570 Goodwill — — 1,683 — — 1,683 Spectrum licenses — — 35,007 — — 35,007 Other intangible assets, net — — 256 — — 256 Investments in subsidiaries, net 19,823 37,943 — — (57,766 ) — Intercompany receivables and note receivables 425 8,903 — — (9,328 ) — Equipment installment plan receivables due after one year, net — — 1,100 — — 1,100 Other assets — 3 778 292 (215 ) 858 Total assets $ 20,277 $ 46,857 $ 66,654 $ 1,450 $ (67,315 ) $ 67,923 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued liabilities $ — $ 201 $ 5,626 $ 244 $ — $ 6,071 Payables to affiliates — 250 38 — — 288 Short-term debt — 3 555 — — 558 Short-term debt to affiliates — — 6 — (6 ) — Deferred revenue — — 790 — — 790 Other current liabilities — — 219 177 — 396 Total current liabilities — 454 7,234 421 (6 ) 8,103 Long-term debt — 11,913 1,250 — — 13,163 Long-term debt to affiliates — 14,586 — — — 14,586 Tower obligations (1) — — 395 2,204 — 2,599 Deferred tax liabilities — — 5,750 — (215 ) 5,535 Deferred rent expense — — 2,693 — — 2,693 Negative carrying value of subsidiaries, net — — 596 — (596 ) — Intercompany payables and debt — — 9,119 209 (9,328 ) — Other long-term liabilities — 81 884 2 — 967 Total long-term liabilities — 26,580 20,687 2,415 (10,139 ) 39,543 Total stockholders' equity (deficit) 20,277 19,823 38,733 (1,386 ) (57,170 ) 20,277 Total liabilities and stockholders' equity $ 20,277 $ 46,857 $ 66,654 $ 1,450 $ (67,315 ) $ 67,923 (1) Assets and liabilities for Non-Guarantor Subsidiaries are primarily included in VIEs related to the 2012 Tower Transaction. See Note 8 – Tower Obligations included in the Annual Report on Form 10-K for the year ended December 31, 2016. Condensed Consolidating Balance Sheet Information December 31, 2016 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Assets Current assets Cash and cash equivalents $ 358 $ 2,733 $ 2,342 $ 67 $ — $ 5,500 Accounts receivable, net — — 1,675 221 — 1,896 Equipment installment plan receivables, net — — 1,930 — — 1,930 Accounts receivable from affiliates — — 40 — — 40 Inventories — — 1,111 — — 1,111 Asset purchase deposit — — 2,203 — — 2,203 Other current assets — — 972 565 — 1,537 Total current assets 358 2,733 10,273 853 — 14,217 Property and equipment, net (1) — — 20,568 375 — 20,943 Goodwill — — 1,683 — — 1,683 Spectrum licenses — — 27,014 — — 27,014 Other intangible assets, net — — 376 — — 376 Investments in subsidiaries, net 17,682 35,095 — — (52,777 ) — Intercompany receivables and note receivables 196 6,826 — — (7,022 ) — Equipment installment plan receivables due after one year, net — — 984 — — 984 Other assets — 7 600 262 (195 ) 674 Total assets $ 18,236 $ 44,661 $ 61,498 $ 1,490 $ (59,994 ) $ 65,891 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued liabilities $ — $ 423 $ 6,474 $ 255 $ — $ 7,152 Payables to affiliates — 79 46 — — 125 Short-term debt — 20 334 — — 354 Deferred revenue — — 986 — — 986 Other current liabilities — — 258 147 — 405 Total current liabilities — 522 8,098 402 — 9,022 Long-term debt — 20,741 1,091 — — 21,832 Long-term debt to affiliates — 5,600 — — — 5,600 Tower obligations (1) — — 400 2,221 — 2,621 Deferred tax liabilities — — 5,133 — (195 ) 4,938 Deferred rent expense — — 2,616 — — 2,616 Negative carrying value of subsidiaries, net — — 568 — (568 ) — Intercompany payables and debt — — 6,785 237 (7,022 ) — Other long-term liabilities — 116 906 4 — 1,026 Total long-term liabilities — 26,457 17,499 2,462 (7,785 ) 38,633 Total stockholders' equity (deficit) 18,236 17,682 35,901 (1,374 ) (52,209 ) 18,236 Total liabilities and stockholders' equity $ 18,236 $ 44,661 $ 61,498 $ 1,490 $ (59,994 ) $ 65,891 (1) Assets and liabilities for Non-Guarantor Subsidiaries are primarily included in VIEs related to the 2012 Tower Transaction. See Note 8 – Tower Obligations included in the Annual Report on Form 10-K for the year ended December 31, 2016. Condensed Consolidating Statement of Comprehensive Income Information Three Months Ended September 30, 2017 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Revenues Service revenues $ — $ — $ 7,312 $ 527 $ (210 ) $ 7,629 Equipment revenues — — 2,160 — (42 ) 2,118 Other revenues — — 224 55 (7 ) 272 Total revenues — — 9,696 582 (259 ) 10,019 Operating expenses Cost of services, exclusive of depreciation and amortization shown separately below — — 1,588 6 — 1,594 Cost of equipment sales — — 2,418 241 (42 ) 2,617 Selling, general and administrative — — 3,106 209 (217 ) 3,098 Depreciation and amortization — — 1,399 17 — 1,416 Gains on disposal of spectrum licenses — — (29 ) — — (29 ) Total operating expense — — 8,482 473 (259 ) 8,696 Operating income — — 1,214 109 — 1,323 Other income (expense) Interest expense — (176 ) (30 ) (47 ) — (253 ) Interest expense to affiliates — (167 ) (6 ) — 6 (167 ) Interest income — 7 1 — (6 ) 2 Other expense, net — 1 1 (1 ) — 1 Total other expense, net — (335 ) (34 ) (48 ) — (417 ) Income (loss) before income taxes — (335 ) 1,180 61 — 906 Income tax expense — — (335 ) (21 ) — (356 ) Earnings of subsidiaries 550 885 — — (1,435 ) — Net income 550 550 845 40 (1,435 ) 550 Dividends on preferred stock (13 ) — — — — (13 ) Net income attributable to common stockholders $ 537 $ 550 $ 845 $ 40 $ (1,435 ) $ 537 Net Income $ 550 $ 550 $ 845 $ 40 $ (1,435 ) $ 550 Other comprehensive income (loss), net of tax Other comprehensive income (loss), net of tax 1 1 1 — (2 ) 1 Total comprehensive income $ 551 $ 551 $ 846 $ 40 $ (1,437 ) $ 551 Condensed Consolidating Statement of Comprehensive Income Information Three Months Ended September 30, 2016 (in millions) Parent Issuer Guarantor Subsidiaries (As adjusted - See Note 1) Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated (As adjusted - See Note 1) Revenues Service revenues $ — $ — $ 6,822 $ 520 $ (209 ) $ 7,133 Equipment revenues — — 2,049 — (101 ) 1,948 Other revenues — — 180 (1) 48 (4 ) 224 Total revenues — — 9,051 (1) 568 (314 ) 9,305 Operating expenses Cost of services, exclusive of depreciation and amortization shown separately below — — 1,430 6 — 1,436 Cost of equipment sales — — 2,340 300 (101 ) 2,539 Selling, general and administrative — — 2,884 227 (213 ) 2,898 Depreciation and amortization — — 1,549 19 — 1,568 Cost of MetroPCS business combination — — 15 — — 15 Gains on disposal of spectrum licenses — — (199 ) — — (199 ) Total operating expense — — 8,019 552 (314 ) 8,257 Operating income — — 1,032 (1) 16 — 1,048 Other income (expense) Interest expense — (303 ) (26 ) (47 ) — (376 ) Interest expense to affiliates — (76 ) — — — (76 ) Interest income — 7 (4 ) (1) — — 3 Other expense, net — — (1 ) — — (1 ) Total other expense, net — (372 ) (31 ) (1) (47 ) — (450 ) Income (loss) before income taxes — (372 ) 1,001 (31 ) — 598 Income tax (expense) benefit — — (242 ) 10 — (232 ) Earnings (loss) of subsidiaries 366 738 (4 ) — (1,100 ) — Net income (loss) 366 366 755 (21 ) (1,100 ) 366 Dividends on preferred stock (13 ) — — — — (13 ) Net income attributable to common stockholders $ 353 $ 366 $ 755 $ (21 ) $ (1,100 ) $ 353 Net Income (loss) $ 366 $ 366 $ 755 $ (21 ) $ (1,100 ) $ 366 Other comprehensive income, net of tax Other comprehensive income, net of tax 2 2 2 2 (6 ) 2 Total comprehensive income (loss) $ 368 $ 368 $ 757 $ (19 ) $ (1,106 ) $ 368 (1) The amortized imputed discount on EIP receivables previously recognized as Interest income has been retrospectively reclassified as Other revenues. See Note 1 - Basis of Presentation for further detail. Condensed Consolidating Statement of Comprehensive Income Information Nine Months Ended September 30, 2017 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Revenues Service revenues $ — $ — $ 21,457 $ 1,580 $ (634 ) $ 22,403 Equipment revenues — — 6,878 — (211 ) 6,667 Other revenues — — 634 158 (17 ) 775 Total revenues — — 28,969 1,738 (862 ) 29,845 Operating expenses Cost of services, exclusive of depreciation and amortization shown separately below — — 4,502 18 — 4,520 Cost of equipment sales — — 7,622 738 (211 ) 8,149 Selling, general and administrative — — 8,967 652 (651 ) 8,968 Depreciation and amortization — — 4,446 53 — 4,499 Gains on disposal of spectrum licenses — — (67 ) — — (67 ) Total operating expenses — — 25,470 1,461 (862 ) 26,069 Operating income — — 3,499 277 — 3,776 Other income (expense) Interest expense — (634 ) (80 ) (143 ) — (857 ) Interest expense to affiliates — (398 ) (18 ) — 18 (398 ) Interest income — 24 9 — (18 ) 15 Other expense, net — (87 ) (1 ) (1 ) — (89 ) Total other expense, net — (1,095 ) (90 ) (144 ) — (1,329 ) Income (loss) before income taxes — (1,095 ) 3,409 133 — 2,447 Income tax expense — — (572 ) (46 ) — (618 ) Earnings (loss) of subsidiaries 1,829 2,924 (17 ) — (4,736 ) — Net income 1,829 1,829 2,820 87 (4,736 ) 1,829 Dividends on preferred stock (41 ) — — — — (41 ) Net income attributable to common stockholders $ 1,788 $ 1,829 $ 2,820 $ 87 $ (4,736 ) $ 1,788 Net Income $ 1,829 $ 1,829 $ 2,820 $ 87 $ (4,736 ) $ 1,829 Other comprehensive income, net of tax Other comprehensive income, net of tax 3 3 3 — (6 ) 3 Total comprehensive income $ 1,832 $ 1,832 $ 2,823 $ 87 $ (4,742 ) $ 1,832 Condensed Consolidating Statement of Comprehensive Income Information Nine Months Ended September 30, 2016 (in millions) Parent Issuer Guarantor Subsidiaries (As adjusted - See Note 1) Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated (As adjusted - See Note 1) Revenues Service revenues $ — $ — $ 19,683 $ 1,500 $ (584 ) $ 20,599 Equipment revenues — — 6,328 — (341 ) 5,987 Other revenues — — 538 (1) 145 (13 ) 670 Total revenues — — 26,549 (1) 1,645 (938 ) 27,256 Operating expenses Cost of services, exclusive of depreciation and amortization shown separately below — — 4,268 18 — 4,286 Cost of equipment sales — — 7,104 768 (340 ) 7,532 Selling, general and administrative — — 8,372 645 (598 ) 8,419 Depreciation and amortization — — 4,636 59 — 4,695 Cost of MetroPCS business combination — — 110 — — 110 Gains on disposal of spectrum licenses — — (835 ) — — (835 ) Total operating expenses — — 23,655 1,490 (938 ) 24,207 Operating income — — 2,894 (1) 155 — 3,049 Other income (expense) Interest expense — (881 ) (61 ) (141 ) — (1,083 ) Interest expense to affiliates — (248 ) — — — (248 ) Interest income — 23 (14 ) (1) — — 9 Other expense, net — — (6 ) — — (6 ) Total other expense, net — (1,106 ) (81 ) (1) (141 ) — (1,328 ) Income (loss) before income taxes — (1,106 ) 2,813 14 — 1,721 Income tax expense — — (643 ) (8 ) — (651 ) Earnings (loss) of subsidiaries 1,070 2,176 (15 ) — (3,231 ) — Net income 1,070 1,070 2,155 6 (3,231 ) 1,070 Dividends on preferred stock (41 ) — — — — (41 ) Net income attributable to common stockholders $ 1,029 $ 1,070 $ 2,155 $ 6 $ (3,231 ) $ 1,029 Net income $ 1,070 $ 1,070 $ 2,155 $ 6 $ (3,231 ) $ 1,070 Other comprehensive income, net of tax Other comprehensive income, net of tax 2 2 2 2 (6 ) 2 Total comprehensive income $ 1,072 $ 1,072 $ 2,157 $ 8 $ (3,237 ) $ 1,072 (1) The amortized imputed discount on EIP receivables previously recognized as Interest income has been retrospectively reclassified as Other revenues. See Note 1 - Basis of Presentation for further detail. Condensed Consolidating Statement of Cash Flows Information Three Months Ended September 30, 2017 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Operating activities Net cash provided by (used in) operating activities $ (2 ) $ (1,554 ) $ 3,904 $ 14 $ — $ 2,362 Investing activities Purchases of property and equipment — — (1,441 ) — — (1,441 ) Purchases of spectrum licenses and other intangible assets, including deposits — — (15 ) — — (15 ) Other, net — — 1 — — 1 Net cash used in investing activities — — (1,455 ) — — (1,455 ) Financing activities Proceeds from issuance of long-term debt — 500 — — — 500 Proceeds from borrowing on revolving credit facility, net — 1,055 — — — 1,055 Repayments of revolving credit facility — — (1,735 ) — — (1,735 ) Repayments of capital lease obligations — — (141 ) — — (141 ) Repayments of short-term debt for purchases of inventory, property and equipment, net — — (4 ) — — (4 ) Tax withholdings on share-based awards — — (6 ) — — (6 ) Dividends on preferred stock (13 ) — — — — (13 ) Other, net 1 — (6 ) — — (5 ) Net cash (used in) provided by financing activities (12 ) 1,555 (1,892 ) — — (349 ) Change in cash and cash equivalents (14 ) 1 557 14 — 558 Cash and cash equivalents Beginning of period 43 1 121 16 — 181 End of period $ 29 $ 2 $ 678 $ 30 $ — $ 739 Condensed Consolidating Statement of Cash Flows Information Three Months Ended September 30, 2016 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Operating activities Net cash provided by (used in) operating activities $ 1 $ (84 ) $ 1,850 $ 8 $ (35 ) $ 1,740 Investing activities Purchases of property and equipment — — (1,159 ) — — (1,159 ) Purchases of spectrum licenses and other intangible assets, including deposits — — (705 ) — — (705 ) Other, net — — 5 — — 5 Net cash used in investing activities — — (1,859 ) — — (1,859 ) Financing activities Repayments of capital lease obligations — — (54 ) — — (54 ) Repayments of long-term debt — — (5 ) — — (5 ) Tax withholdings on share-based awards — — (3 ) — — (3 ) Intercompany dividend paid — — — (35 ) 35 — Dividends on preferred stock (13 ) — — — — (13 ) Other, net 11 — (3 ) — — 8 Net cash used in financing activities (2 ) — (65 ) (35 ) 35 (67 ) Change in cash and cash equivalents (1 ) (84 ) (74 ) (27 ) — (186 ) Cash and cash equivalents Beginning of period 367 2,683 2,439 49 — 5,538 End of period $ 366 $ 2,599 $ 2,365 $ 22 $ — $ 5,352 Condensed Consolidating Statement of Cash Flows Information Nine Months Ended September 30, 2017 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Operating activities Net cash provided by (used in) operating activities $ — $ (16,429 ) $ 22,370 $ 43 $ (80 ) $ 5,904 Investing activities Purchases of property and equipment — — (4,316 ) — — (4,316 ) Purchases of spectrum licenses and other intangible assets, including deposits — — (5,820 ) — — (5,820 ) Equity investment in subsidiary (308 ) — — — 308 — Other, net — — (2 ) — — (2 ) Net cash used in investing activities (308 ) — (10,138 ) — 308 (10,138 ) Financing activities Proceeds from issuance of long-term debt — 10,480 — — — 10,480 Proceeds from borrowing on revolving credit facility, net — 2,910 — — — 2,910 Repayments of revolving credit facility — — (2,910 ) — — (2,910 ) Repayments of capital lease obligations — — (350 ) — — (350 ) Repayments of short-term debt for purchases of inventory, property and equipment, net — — (296 ) — — (296 ) Repayments of long-term debt — — (10,230 ) — — (10,230 ) Equity investment from parent — 308 — — (308 ) — Tax withholdings on share-based awards — — (101 ) — — (101 ) Intercompany dividend paid — — — (80 ) 80 — Dividends on preferred stock (41 ) — — — — (41 ) Other, net 20 — (9 ) — — 11 Net cash (used in) provided by financing activities (21 ) 13,698 (13,896 ) (80 ) (228 ) (527 ) Change in cash and cash equivalents (329 ) (2,731 ) (1,664 ) (37 ) — (4,761 ) Cash and cash equivalents Beginning of period 358 2,733 2,342 67 — 5,500 End of period $ 29 $ 2 $ 678 $ 30 $ — $ 739 Condensed Consolidating Statement of Cash Flows Information Nine Months Ended September 30, 2016 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Operating activities Net cash provided by (used in) operating activities $ 4 $ (2,165 ) $ 6,745 $ 59 $ (110 ) $ 4,533 Investing activities Purchases of property and equipment — — (3,843 ) — — (3,843 ) Purchases of spectrum licenses and other intangible assets, including deposits — — (3,544 ) — — (3,544 ) Sales of short-term investments — 2,000 998 — — 2,998 Other, net — — 3 — — 3 Net cash provided by (used in) investing activities — 2,000 (6,386 ) — — (4,386 ) Financing activities Proceeds from issuance of long-term debt — 997 — — — 997 Repayments of capital lease obligations — — (133 ) — — (133 ) Repayments of short-term debt for purchases of inventory, property and equipment, net — — (150 ) — — (150 ) Repayments of long-term debt — — (15 ) — — (15 ) Tax withholdings on share-based awards — — (52 ) — — (52 ) Intercompany dividend paid — — — (110 ) 110 — Dividends on preferred stock (41 ) — — — — (41 ) Other, net 25 — (8 ) — — 17 Net cash (used in) provided by financing activities (16 ) 997 (358 ) (110 ) 110 623 Change in cash and cash equivalents (12 ) 832 1 (51 ) — 770 Cash and cash equivalents Beginning of period 378 1,767 2,364 73 — 4,582 End of period $ 366 $ 2,599 $ 2,365 $ 22 $ — $ 5,352 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements of T-Mobile US, Inc. (“T-Mobile,” “we,” “our,” “us” or the “Company”) include all adjustments of a normal recurring nature necessary for the fair presentation of the results for the interim periods presented. The results for the interim periods are not necessarily indicative of those for the full year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 . The condensed consolidated financial statements include the balances and results of operations of T-Mobile and our consolidated subsidiaries. We consolidate majority-owned subsidiaries over which we exercise control, as well as variable interest entities (“VIE”) where we are deemed to be the primary beneficiary and VIEs which cannot be deconsolidated, such as those related to Tower obligations (Tower obligations are included in VIEs related to the 2012 Tower Transaction. See Note 8 - Tower Obligations included in the Annual Report on Form 10-K for the year ended December 31, 2016 ). Intercompany transactions and balances have been eliminated in consolidation. |
Basis of Accounting | The preparation of financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires our management to make estimates and assumptions which affect the financial statements and accompanying notes. |
Use of Estimates | Estimates are based on historical experience, where applicable, and other assumptions which our management believes are reasonable under the circumstances. These estimates are inherently subject to judgment and actual results could differ from those estimates. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), and has since modified the standard with several ASUs. The standard is effective for us, and we will adopt the standard, on January 1, 2018. The standard requires entities to recognize revenue through the application of a five-step model, which includes: identification of the contract; identification of the performance obligations; determination of the transaction price; allocation of the transaction price to the performance obligations; and recognition of revenue as the entity satisfies the performance obligations. The guidance permits two methods of adoption, the full retrospective method applying the standard to each prior reporting period presented, or the modified retrospective method with a cumulative effect of initially applying the guidance recognized at the date of initial application. The standard also allows entities to apply certain practical expedients at their discretion. We are adopting the standard using the modified retrospective method with a cumulative catch up adjustment and will provide additional disclosures comparing results to previous GAAP. We currently anticipate this standard will have a material impact on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant potential impacts include the following items: • Whether our EIP contracts contain a significant financing component, which is similar to our current practice of imputing interest, and would similarly impact the amount of revenue recognized at the time of an EIP sale and whether or not a portion of the revenue is recognized as interest and included in other revenues, rather than equipment revenues. We currently expect to recognize the financing component in our EIP contracts, including those financing components that are not considered to be significant to the contract. We believe that this application will be consistent with our current practice of imputing interest. • As we currently expense contract acquisition costs, we believe that the requirement to defer incremental contract acquisition costs and recognize them over the term of the initial contract and anticipated renewal contracts to which the costs relate will have a significant impact to our consolidated financial statements. We plan to utilize the practical expedient permitting expensing of costs to obtain a contract when the expected amortization period is one year or less which we expect will typically result in expensing commissions paid to acquire branded prepaid service contracts. Currently, we believe that incremental contract acquisition costs of approximately $450 million to $550 million that were incurred during the nine months ended September 30, 2017, which consists primarily of commissions paid to acquire branded postpaid service contracts, would require capitalization and amortization under the new standard. We expect that deferred contract costs will have an average amortization period of approximately 24 months, subject to being monitored and updated every period to reflect any significant change in assumptions. In addition, the deferred contract cost asset will be assessed for impairment on a periodic basis. • We expect that promotional bill credits offered to customers on equipment sales that are paid over time and are contingent on the customer maintaining a service contract will result in extended service contracts, which impacts the allocation and timing of revenue recognition between service revenue and equipment revenue. • Overall, with the exception of the aforementioned impacts, we do not expect that the new standard will result in a substantive change to the method of allocation of contract revenues between various services and equipment, nor to the timing of when revenues are recognized for most of our service contracts. We are still in the process of evaluating these impacts, and our initial assessment may change due to changes in the terms and mix of the contractual arrangements we have with customers. New products or offerings, or changes to current offerings may yield significantly different impacts than currently expected. We are in the process of implementing significant new revenue accounting systems, processes and internal controls over revenue recognition which will assist us in the application of the new standard. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The standard requires all lessees to report a right-of-use asset and a lease liability for most leases. The income statement recognition is similar to existing lease accounting and is based on lease classification. The standard requires lessees and lessors to classify most leases using principles similar to existing lease accounting. For lessors, the standard modifies the classification criteria and the accounting for sales-type and direct financing leases. We are currently evaluating the standard, which will require recognizing and measuring leases at the beginning of the earliest period presented using a modified retrospective approach. We plan to adopt the standard when it becomes effective for us beginning January 1, 2019, and expect the adoption of the standard will result in the recognition of right of use assets and lease liabilities that have not previously been recorded, which will have a material impact on our condensed consolidated financial statements . We are in the process of implementing significant new lease accounting systems, processes and internal controls over lease recognition which will ultimately assist in the application of the new standard. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The standard requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectibility of the reported amount. The standard will become effective for us beginning January 1, 2020, and will require a cumulative-effect adjustment to Accumulated deficit as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). Early adoption is permitted for us as of January 1, 2019. We are currently evaluating the impact this guidance will have on our condensed consolidated financial statements and the timing of adoption. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The standard is intended to reduce current diversity in practice and provides guidance on how certain cash receipts and payments are presented and classified in the statement of cash flows. The standard is effective for us, and we will adopt the standard, on January 1, 2018. The standard will require a retrospective approach. The standard will impact the presentation of cash flows related to beneficial interests in securitization transactions, which is the deferred purchase price, resulting in a reclassification of cash inflows from Operating activities to Investing activities of approximately $1.0 billion for the three months ended September 30, 2017 and 2016 , and $2.8 billion for the nine months ended September 30, 2017 and 2016 , in our condensed consolidated statement of cash flows. The standard will also impact the presentation of cash payments for debt prepayment or debt extinguishment costs, resulting in a reclassification of cash outflows from Operating activities to Financing activities of $188 million for the nine months ended September 30, 2017 , in our condensed consolidated statement of cash flows. We had no cash payments for debt prepayment or debt extinguishment costs for the three months ended September 30, 2017 . In October 2016, the FASB issued ASU 2016-16, “Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory.” The standard requires that the income tax impact of intra-entity sales and transfers of property, except for inventory, be recognized when the transfer occurs. The standard will become effective for us beginning January 1, 2018, and will require any deferred taxes not yet recognized on intra-entity transfers to be recorded to retained earnings under a modified retrospective approach. Early adoption is permitted. We are currently evaluating the standard, but expect that it will not have a material impact on our condensed consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” The standard requires entities to include in their cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. The ASU does not define the terms “restricted cash” and “restricted cash equivalents.” The standard will be effective for us beginning January 1, 2018, and will require a retrospective approach. Early adoption is permitted. We are currently evaluating the standard, but expect that it will not have a material impact on our condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The standard eliminates the requirement to measure the implied fair value of goodwill by assigning the fair value of a reporting unit to all assets and liabilities within that unit (“the Step 2 test”) from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited by the amount of goodwill in that reporting unit. The standard will become effective for us beginning January 1, 2020, and must be applied to any annual or interim goodwill impairment assessments after that date. Early adoption is permitted. We are currently evaluating the standard and timing of adoption, but expect that it will not have a material impact on our condensed consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | We have applied this change retrospectively and presented the effect on the three and nine months ended September 30, 2017 and 2016 , in the tables below: Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 (in millions) Unadjusted Change in Accounting Principle As Adjusted As Filed Change in Accounting Principle As Adjusted Other revenues $ 198 $ 74 $ 272 $ 165 $ 59 $ 224 Total revenues 9,945 74 10,019 9,246 59 9,305 Operating income 1,249 74 1,323 989 59 1,048 Interest income 76 (74 ) 2 62 (59 ) 3 Total other expense, net (343 ) (74 ) (417 ) (391 ) (59 ) (450 ) Net income 550 — 550 366 — 366 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (in millions) Unadjusted Change in Accounting Principle As Adjusted As Filed Change in Accounting Principle As Adjusted Other revenues $ 571 $ 204 $ 775 $ 481 $ 189 $ 670 Total revenues 29,641 204 29,845 27,067 189 27,256 Operating income 3,572 204 3,776 2,860 189 3,049 Interest income 219 (204 ) 15 198 (189 ) 9 Total other expense, net (1,125 ) (204 ) (1,329 ) (1,139 ) (189 ) (1,328 ) Net income 1,829 — 1,829 1,070 — 1,070 |
Equipment Installment Plan Re21
Equipment Installment Plan Receivables (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Equipment Installment Plan Receivables | The following table summarizes the EIP receivables: (in millions) September 30, December 31, EIP receivables, gross $ 3,599 $ 3,230 Unamortized imputed discount (233 ) (195 ) EIP receivables, net of unamortized imputed discount 3,366 3,035 Allowance for credit losses (130 ) (121 ) EIP receivables, net $ 3,236 $ 2,914 Classified on the balance sheet as: Equipment installment plan receivables, net $ 2,136 $ 1,930 Equipment installment plan receivables due after one year, net 1,100 984 EIP receivables, net $ 3,236 $ 2,914 |
Schedule of Equipment Installment Plan Receivables by Credit Category | The balance and aging of the EIP receivables on a gross basis by credit category were as follows: September 30, 2017 December 31, 2016 (in millions) Prime Subprime Total Prime Subprime Total Unbilled $ 1,471 $ 1,903 $ 3,374 $ 1,343 $ 1,686 $ 3,029 Billed – Current 60 90 150 51 77 128 Billed – Past Due 25 50 75 25 48 73 EIP receivables, gross $ 1,556 $ 2,043 $ 3,599 $ 1,419 $ 1,811 $ 3,230 |
Schedule of Unamortized Imputed Discount and Allowance for Credit Losses for Equipment Installment Plan Receivables | Activity for the nine months ended September 30, 2017 and 2016 , in the unamortized imputed discount and allowance for credit losses balances for the EIP receivables was as follows: (in millions) September 30, September 30, Imputed discount and allowance for credit losses, beginning of period $ 316 $ 333 Bad debt expense 215 185 Write-offs, net of recoveries (205 ) (201 ) Change in imputed discount on short-term and long-term EIP receivables 163 103 Impacts from sales of EIP receivables (126 ) (133 ) Imputed discount and allowance for credit losses, end of period $ 363 $ 287 |
Sales of Certain Receivables (T
Sales of Certain Receivables (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Schedule of Variable Interest Entities | The following table summarizes the carrying amounts and classification of assets, which consists primarily of the deferred purchase price and liabilities included in our Condensed Consolidated Balance Sheets that relate to our variable interest in the Service VIE: (in millions) September 30, December 31, Other current assets $ 225 $ 207 Accounts payable and accrued liabilities 13 17 Other current liabilities 155 129 |
Schedule of variable interest entities - EIP | The following table summarizes the carrying amounts and classification of assets, which consists primarily of the deferred purchase price and liabilities included in our Condensed Consolidated Balance Sheets that relate to the EIP BRE: (in millions) September 30, December 31, Other current assets $ 357 $ 371 Other assets 90 83 Other long-term liabilities 2 4 |
Schedule of Factoring Arrangement | The following table summarizes the impacts of the sale of certain service receivables and EIP receivables in our Condensed Consolidated Balance Sheets : (in millions) September 30, December 31, Derecognized net service receivables and EIP receivables $ 2,362 $ 2,502 Other current assets 582 578 of which, deferred purchase price 581 576 Other long-term assets 90 83 of which, deferred purchase price 90 83 Accounts payable and accrued liabilities 13 17 Other current liabilities 155 129 Other long-term liabilities 2 4 Net cash proceeds since inception 1,963 2,030 Of which: Change in net cash proceeds during the year-to-date period (67 ) 536 Net cash proceeds funded by reinvested collections 2,030 1,494 |
Spectrum License Transactions (
Spectrum License Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Spectrum Licenses | The following table summarizes our spectrum license activity during the nine months ended September 30, 2017 : (in millions) Spectrum Licenses Balance at December 31, 2016 $ 27,014 Spectrum license acquisitions 8,247 Spectrum licenses transferred to held for sale (271 ) Costs to clear spectrum 17 Balance at September 30, 2017 $ 35,007 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Fair Values of Long-term Debt | The carrying amounts and fair values of our assets and liabilities measured at fair value on a recurring basis included in our Condensed Consolidated Balance Sheets were as follows: Level within the Fair Value Hierarchy September 30, 2017 December 31, 2016 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Assets: Deferred purchase price assets 3 $ 671 $ 671 $ 659 $ 659 Liabilities: Guarantee liabilities 3 121 121 135 135 The principal amounts and fair values of our long-term debt included in our Condensed Consolidated Balance Sheets were as follows: Level within the Fair Value Hierarchy September 30, 2017 December 31, 2016 (in millions) Principal Amount Fair Value Principal Amount Fair Value Liabilities: Senior Notes to third parties 1 $ 11,850 $ 12,605 $ 18,600 $ 19,584 Senior Notes to affiliates 2 7,500 7,897 — — Incremental Term Loan Facility to affiliates 2 4,000 4,020 — — Senior Reset Notes to affiliates 2 3,100 3,290 5,600 5,955 Senior Secured Term Loans 2 — — 1,980 2,005 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | During the nine months ended September 30, 2017 , we issued the following Senior Notes: (in millions) Principal Issuances Issuance Costs Net Proceeds from Issuance of Long-Term Debt 4.000% Senior Notes due 2022 $ 500 $ 2 $ 498 5.125% Senior Notes due 2025 500 2 498 5.375% Senior Notes due 2027 500 1 499 Total of Senior Notes Issued $ 1,500 $ 5 $ 1,495 On May 9, 2017, we exercised our option under existing purchase agreements and issued the following Senior Notes to DT: (in millions) Principal Issuances Premium Net Proceeds from Issuance of Long-Term Debt 5.300% Senior Notes due 2021 $ 2,000 $ — $ 2,000 6.000% Senior Notes due 2024 1,350 40 1,390 6.000% Senior Notes due 2024 650 24 674 Total $ 4,000 $ 64 $ 4,064 During the nine months ended September 30, 2017 , we made the following borrowings: (in millions) Net Proceeds from Issuance of Long-Term Debt Extinguishments Write-off of Discounts and Issuance Costs (1) LIBOR plus 2.00% Senior Secured Term Loan due 2022 $ 2,000 $ — $ — LIBOR plus 2.00% Senior Secured Term Loan due 2024 2,000 — — LIBOR plus 2.750% Senior Secured Term Loan (2) — (1,980 ) 13 Total $ 4,000 $ (1,980 ) $ 13 (1) Write-off of discounts and issuance costs are included in Other income (expense), net in our Condensed Consolidated Statements of Comprehensive Income and Other, net within Net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows . (2) Our Senior Secured Term Loan extinguished during the nine months ended September 30, 2017 was Third Party debt. The following table sets forth the debt balances and activity as of, and for the nine months ended , September 30, 2017 : (in millions) December 31, Issuances and Borrowings (1) Note Redemptions (1) Extinguishments (1) Repayments Other (2) September 30, Short-term debt $ 354 $ — $ — $ (20 ) $ — $ 224 $ 558 Long-term debt 21,832 1,495 (8,365 ) (1,947 ) — 148 13,163 Total debt to third parties 22,186 1,495 (8,365 ) (1,967 ) — 372 13,721 Short-term debt to affiliates — 2,910 — — (2,910 ) — — Long-term debt to affiliates 5,600 8,985 — — — 1 14,586 Total debt to affiliates 5,600 11,895 — — (2,910 ) 1 14,586 Total debt $ 27,786 $ 13,390 $ (8,365 ) $ (1,967 ) $ (2,910 ) $ 373 $ 28,307 (1) Issuances and borrowings, note redemptions and extinguishments are recorded net of related issuance costs, discounts and premiums. Issuances and borrowings for Short-term debt to affiliates represent net outstanding borrowings on our senior secured revolving credit facility. (2) Other includes: $299 million of issuances of short-term debt related to vendor financing arrangements, of which $291 million is related to financing of property and equipment. During the nine months ended September 30, 2017 , we repaid $296 million under the vendor financing arrangements. As of September 30, 2017 , vendor financing arrangements totaled $3 million . Vendor financing arrangements are included in Short-term debt within Total current liabilities in our Condensed Consolidated Balance Sheets . Additional activity in Other includes capital leases and the amortization of discounts and premiums. As of September 30, 2017 and December 31, 2016 , capital lease liabilities totaled $1.8 billion and $1.4 billion , respectively. During the nine months ended September 30, 2017 , we issued the following Senior Notes to DT: (in millions) Principal Issuances (Redemptions) Discounts (1) Net Proceeds from Issuance of Long-Term Debt 4.000% Senior Notes due 2022 $ 1,000 $ (23 ) $ 977 5.125% Senior Notes due 2025 1,250 (28 ) 1,222 5.375% Senior Notes due 2027 (2) 1,250 (28 ) 1,222 6.288% Senior Reset Notes due 2019 (1,250 ) — (1,250 ) 6.366% Senior Reset Notes due 2020 (1,250 ) — (1,250 ) Total $ 1,000 $ (79 ) $ 921 (1) Discounts reduce Proceeds from issuance of long-term debt and are included within Net cash (used in) provided by financing activities in our Condensed Consolidated Statements of Cash Flows . (2) In April 2017, we issued to DT $750 million in aggregate principal amount of the 5.375% Senior Notes due 2027 , and in September 2017, we issued to DT the remaining $500 million in aggregate principal amount of the 5.375% Senior Notes due 2027 . |
Debt Instrument Redemption | During the nine months ended September 30, 2017 , we made the following note redemptions: (in millions) Principal Amount Write-off of Premiums, Discounts and Issuance Costs (1) Call Penalties (1) (2) Redemption Redemption Price 6.625% Senior Notes due 2020 $ 1,000 $ (45 ) $ 22 February 10, 2017 102.208 % 5.250% Senior Notes due 2018 500 1 7 March 4, 2017 101.313 % 6.250% Senior Notes due 2021 1,750 (71 ) 55 April 1, 2017 103.125 % 6.464% Senior Notes due 2019 1,250 — — April 28, 2017 100.000 % 6.542% Senior Notes due 2020 1,250 — 21 April 28, 2017 101.636 % 6.633% Senior Notes due 2021 1,250 — 41 April 28, 2017 103.317 % 6.731% Senior Notes due 2022 1,250 — 42 April 28, 2017 103.366 % Total note redemptions $ 8,250 $ (115 ) $ 188 (1) Write-off of premiums, discounts, issuance costs and call penalties are included in Other income (expense), net in our Condensed Consolidated Statements of Comprehensive Income . Write-off of premiums, discounts and issuance costs are included in Other, net within Net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows . (2) The call penalty is the excess paid over the principal amount. Call penalties are included within Net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The computation of basic and diluted earnings per share was as follows: Three Months Ended September 30, Nine Months Ended September 30, (in millions, except shares and per share amounts) 2017 2016 2017 2016 Net income $ 550 $ 366 $ 1,829 $ 1,070 Less: Dividends on mandatory convertible preferred stock (13 ) (13 ) (41 ) (41 ) Net income attributable to common stockholders - basic 537 353 1,788 1,029 Add: Dividends related to mandatory convertible preferred stock 13 — 41 — Net income attributable to common stockholders - diluted $ 550 $ 353 $ 1,829 $ 1,029 Weighted average shares outstanding - basic 831,189,779 822,998,697 829,974,146 821,626,675 Effect of dilutive securities: Outstanding stock options and unvested stock awards 7,992,286 9,259,122 9,523,365 9,614,352 Mandatory convertible preferred stock 32,238,000 — 32,238,000 — Weighted average shares outstanding - diluted 871,420,065 832,257,819 871,735,511 831,241,027 Earnings per share - basic $ 0.65 $ 0.43 $ 2.15 $ 1.25 Earnings per share - diluted $ 0.63 $ 0.42 $ 2.10 $ 1.24 Potentially dilutive securities: Outstanding stock options and unvested stock awards — 278,675 4,760 287,375 Mandatory convertible preferred stock — 32,238,000 — 32,238,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments for Non-Cancelable Operating Leases and Purchase Commitments | Future minimum payments for non-cancelable operating leases and purchase commitments are as follows: (in millions) Operating Leases Purchase Commitments Year ending September 30, 2018 $ 2,397 $ 2,477 2019 2,153 1,210 2020 1,867 1,015 2021 1,472 759 2022 1,163 661 Thereafter 2,240 904 Total $ 11,292 $ 7,026 |
Guarantor Financial Informati28
Guarantor Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Consolidating Balance Sheet Information | Condensed Consolidating Balance Sheet Information September 30, 2017 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Assets Current assets Cash and cash equivalents $ 29 $ 2 $ 678 $ 30 $ — $ 739 Accounts receivable, net — — 1,504 230 — 1,734 Equipment installment plan receivables, net — — 2,136 — — 2,136 Accounts receivable from affiliates — 6 24 — (6 ) 24 Inventories — — 999 — — 999 Other current assets — — 1,241 576 — 1,817 Total current assets 29 8 6,582 836 (6 ) 7,449 Property and equipment, net (1) — — 21,248 322 — 21,570 Goodwill — — 1,683 — — 1,683 Spectrum licenses — — 35,007 — — 35,007 Other intangible assets, net — — 256 — — 256 Investments in subsidiaries, net 19,823 37,943 — — (57,766 ) — Intercompany receivables and note receivables 425 8,903 — — (9,328 ) — Equipment installment plan receivables due after one year, net — — 1,100 — — 1,100 Other assets — 3 778 292 (215 ) 858 Total assets $ 20,277 $ 46,857 $ 66,654 $ 1,450 $ (67,315 ) $ 67,923 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued liabilities $ — $ 201 $ 5,626 $ 244 $ — $ 6,071 Payables to affiliates — 250 38 — — 288 Short-term debt — 3 555 — — 558 Short-term debt to affiliates — — 6 — (6 ) — Deferred revenue — — 790 — — 790 Other current liabilities — — 219 177 — 396 Total current liabilities — 454 7,234 421 (6 ) 8,103 Long-term debt — 11,913 1,250 — — 13,163 Long-term debt to affiliates — 14,586 — — — 14,586 Tower obligations (1) — — 395 2,204 — 2,599 Deferred tax liabilities — — 5,750 — (215 ) 5,535 Deferred rent expense — — 2,693 — — 2,693 Negative carrying value of subsidiaries, net — — 596 — (596 ) — Intercompany payables and debt — — 9,119 209 (9,328 ) — Other long-term liabilities — 81 884 2 — 967 Total long-term liabilities — 26,580 20,687 2,415 (10,139 ) 39,543 Total stockholders' equity (deficit) 20,277 19,823 38,733 (1,386 ) (57,170 ) 20,277 Total liabilities and stockholders' equity $ 20,277 $ 46,857 $ 66,654 $ 1,450 $ (67,315 ) $ 67,923 (1) Assets and liabilities for Non-Guarantor Subsidiaries are primarily included in VIEs related to the 2012 Tower Transaction. See Note 8 – Tower Obligations included in the Annual Report on Form 10-K for the year ended December 31, 2016. Condensed Consolidating Balance Sheet Information December 31, 2016 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Assets Current assets Cash and cash equivalents $ 358 $ 2,733 $ 2,342 $ 67 $ — $ 5,500 Accounts receivable, net — — 1,675 221 — 1,896 Equipment installment plan receivables, net — — 1,930 — — 1,930 Accounts receivable from affiliates — — 40 — — 40 Inventories — — 1,111 — — 1,111 Asset purchase deposit — — 2,203 — — 2,203 Other current assets — — 972 565 — 1,537 Total current assets 358 2,733 10,273 853 — 14,217 Property and equipment, net (1) — — 20,568 375 — 20,943 Goodwill — — 1,683 — — 1,683 Spectrum licenses — — 27,014 — — 27,014 Other intangible assets, net — — 376 — — 376 Investments in subsidiaries, net 17,682 35,095 — — (52,777 ) — Intercompany receivables and note receivables 196 6,826 — — (7,022 ) — Equipment installment plan receivables due after one year, net — — 984 — — 984 Other assets — 7 600 262 (195 ) 674 Total assets $ 18,236 $ 44,661 $ 61,498 $ 1,490 $ (59,994 ) $ 65,891 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued liabilities $ — $ 423 $ 6,474 $ 255 $ — $ 7,152 Payables to affiliates — 79 46 — — 125 Short-term debt — 20 334 — — 354 Deferred revenue — — 986 — — 986 Other current liabilities — — 258 147 — 405 Total current liabilities — 522 8,098 402 — 9,022 Long-term debt — 20,741 1,091 — — 21,832 Long-term debt to affiliates — 5,600 — — — 5,600 Tower obligations (1) — — 400 2,221 — 2,621 Deferred tax liabilities — — 5,133 — (195 ) 4,938 Deferred rent expense — — 2,616 — — 2,616 Negative carrying value of subsidiaries, net — — 568 — (568 ) — Intercompany payables and debt — — 6,785 237 (7,022 ) — Other long-term liabilities — 116 906 4 — 1,026 Total long-term liabilities — 26,457 17,499 2,462 (7,785 ) 38,633 Total stockholders' equity (deficit) 18,236 17,682 35,901 (1,374 ) (52,209 ) 18,236 Total liabilities and stockholders' equity $ 18,236 $ 44,661 $ 61,498 $ 1,490 $ (59,994 ) $ 65,891 (1) Assets and liabilities for Non-Guarantor Subsidiaries are primarily included in VIEs related to the 2012 Tower Transaction. See Note 8 – Tower Obligations included in the Annual Report on Form 10-K for the year ended December 31, 2016. |
Schedule of Condensed Consolidating Statement of Comprehensive Income Information | Condensed Consolidating Statement of Comprehensive Income Information Three Months Ended September 30, 2017 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Revenues Service revenues $ — $ — $ 7,312 $ 527 $ (210 ) $ 7,629 Equipment revenues — — 2,160 — (42 ) 2,118 Other revenues — — 224 55 (7 ) 272 Total revenues — — 9,696 582 (259 ) 10,019 Operating expenses Cost of services, exclusive of depreciation and amortization shown separately below — — 1,588 6 — 1,594 Cost of equipment sales — — 2,418 241 (42 ) 2,617 Selling, general and administrative — — 3,106 209 (217 ) 3,098 Depreciation and amortization — — 1,399 17 — 1,416 Gains on disposal of spectrum licenses — — (29 ) — — (29 ) Total operating expense — — 8,482 473 (259 ) 8,696 Operating income — — 1,214 109 — 1,323 Other income (expense) Interest expense — (176 ) (30 ) (47 ) — (253 ) Interest expense to affiliates — (167 ) (6 ) — 6 (167 ) Interest income — 7 1 — (6 ) 2 Other expense, net — 1 1 (1 ) — 1 Total other expense, net — (335 ) (34 ) (48 ) — (417 ) Income (loss) before income taxes — (335 ) 1,180 61 — 906 Income tax expense — — (335 ) (21 ) — (356 ) Earnings of subsidiaries 550 885 — — (1,435 ) — Net income 550 550 845 40 (1,435 ) 550 Dividends on preferred stock (13 ) — — — — (13 ) Net income attributable to common stockholders $ 537 $ 550 $ 845 $ 40 $ (1,435 ) $ 537 Net Income $ 550 $ 550 $ 845 $ 40 $ (1,435 ) $ 550 Other comprehensive income (loss), net of tax Other comprehensive income (loss), net of tax 1 1 1 — (2 ) 1 Total comprehensive income $ 551 $ 551 $ 846 $ 40 $ (1,437 ) $ 551 Condensed Consolidating Statement of Comprehensive Income Information Three Months Ended September 30, 2016 (in millions) Parent Issuer Guarantor Subsidiaries (As adjusted - See Note 1) Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated (As adjusted - See Note 1) Revenues Service revenues $ — $ — $ 6,822 $ 520 $ (209 ) $ 7,133 Equipment revenues — — 2,049 — (101 ) 1,948 Other revenues — — 180 (1) 48 (4 ) 224 Total revenues — — 9,051 (1) 568 (314 ) 9,305 Operating expenses Cost of services, exclusive of depreciation and amortization shown separately below — — 1,430 6 — 1,436 Cost of equipment sales — — 2,340 300 (101 ) 2,539 Selling, general and administrative — — 2,884 227 (213 ) 2,898 Depreciation and amortization — — 1,549 19 — 1,568 Cost of MetroPCS business combination — — 15 — — 15 Gains on disposal of spectrum licenses — — (199 ) — — (199 ) Total operating expense — — 8,019 552 (314 ) 8,257 Operating income — — 1,032 (1) 16 — 1,048 Other income (expense) Interest expense — (303 ) (26 ) (47 ) — (376 ) Interest expense to affiliates — (76 ) — — — (76 ) Interest income — 7 (4 ) (1) — — 3 Other expense, net — — (1 ) — — (1 ) Total other expense, net — (372 ) (31 ) (1) (47 ) — (450 ) Income (loss) before income taxes — (372 ) 1,001 (31 ) — 598 Income tax (expense) benefit — — (242 ) 10 — (232 ) Earnings (loss) of subsidiaries 366 738 (4 ) — (1,100 ) — Net income (loss) 366 366 755 (21 ) (1,100 ) 366 Dividends on preferred stock (13 ) — — — — (13 ) Net income attributable to common stockholders $ 353 $ 366 $ 755 $ (21 ) $ (1,100 ) $ 353 Net Income (loss) $ 366 $ 366 $ 755 $ (21 ) $ (1,100 ) $ 366 Other comprehensive income, net of tax Other comprehensive income, net of tax 2 2 2 2 (6 ) 2 Total comprehensive income (loss) $ 368 $ 368 $ 757 $ (19 ) $ (1,106 ) $ 368 (1) The amortized imputed discount on EIP receivables previously recognized as Interest income has been retrospectively reclassified as Other revenues. See Note 1 - Basis of Presentation for further detail. Condensed Consolidating Statement of Comprehensive Income Information Nine Months Ended September 30, 2017 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Revenues Service revenues $ — $ — $ 21,457 $ 1,580 $ (634 ) $ 22,403 Equipment revenues — — 6,878 — (211 ) 6,667 Other revenues — — 634 158 (17 ) 775 Total revenues — — 28,969 1,738 (862 ) 29,845 Operating expenses Cost of services, exclusive of depreciation and amortization shown separately below — — 4,502 18 — 4,520 Cost of equipment sales — — 7,622 738 (211 ) 8,149 Selling, general and administrative — — 8,967 652 (651 ) 8,968 Depreciation and amortization — — 4,446 53 — 4,499 Gains on disposal of spectrum licenses — — (67 ) — — (67 ) Total operating expenses — — 25,470 1,461 (862 ) 26,069 Operating income — — 3,499 277 — 3,776 Other income (expense) Interest expense — (634 ) (80 ) (143 ) — (857 ) Interest expense to affiliates — (398 ) (18 ) — 18 (398 ) Interest income — 24 9 — (18 ) 15 Other expense, net — (87 ) (1 ) (1 ) — (89 ) Total other expense, net — (1,095 ) (90 ) (144 ) — (1,329 ) Income (loss) before income taxes — (1,095 ) 3,409 133 — 2,447 Income tax expense — — (572 ) (46 ) — (618 ) Earnings (loss) of subsidiaries 1,829 2,924 (17 ) — (4,736 ) — Net income 1,829 1,829 2,820 87 (4,736 ) 1,829 Dividends on preferred stock (41 ) — — — — (41 ) Net income attributable to common stockholders $ 1,788 $ 1,829 $ 2,820 $ 87 $ (4,736 ) $ 1,788 Net Income $ 1,829 $ 1,829 $ 2,820 $ 87 $ (4,736 ) $ 1,829 Other comprehensive income, net of tax Other comprehensive income, net of tax 3 3 3 — (6 ) 3 Total comprehensive income $ 1,832 $ 1,832 $ 2,823 $ 87 $ (4,742 ) $ 1,832 Condensed Consolidating Statement of Comprehensive Income Information Nine Months Ended September 30, 2016 (in millions) Parent Issuer Guarantor Subsidiaries (As adjusted - See Note 1) Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated (As adjusted - See Note 1) Revenues Service revenues $ — $ — $ 19,683 $ 1,500 $ (584 ) $ 20,599 Equipment revenues — — 6,328 — (341 ) 5,987 Other revenues — — 538 (1) 145 (13 ) 670 Total revenues — — 26,549 (1) 1,645 (938 ) 27,256 Operating expenses Cost of services, exclusive of depreciation and amortization shown separately below — — 4,268 18 — 4,286 Cost of equipment sales — — 7,104 768 (340 ) 7,532 Selling, general and administrative — — 8,372 645 (598 ) 8,419 Depreciation and amortization — — 4,636 59 — 4,695 Cost of MetroPCS business combination — — 110 — — 110 Gains on disposal of spectrum licenses — — (835 ) — — (835 ) Total operating expenses — — 23,655 1,490 (938 ) 24,207 Operating income — — 2,894 (1) 155 — 3,049 Other income (expense) Interest expense — (881 ) (61 ) (141 ) — (1,083 ) Interest expense to affiliates — (248 ) — — — (248 ) Interest income — 23 (14 ) (1) — — 9 Other expense, net — — (6 ) — — (6 ) Total other expense, net — (1,106 ) (81 ) (1) (141 ) — (1,328 ) Income (loss) before income taxes — (1,106 ) 2,813 14 — 1,721 Income tax expense — — (643 ) (8 ) — (651 ) Earnings (loss) of subsidiaries 1,070 2,176 (15 ) — (3,231 ) — Net income 1,070 1,070 2,155 6 (3,231 ) 1,070 Dividends on preferred stock (41 ) — — — — (41 ) Net income attributable to common stockholders $ 1,029 $ 1,070 $ 2,155 $ 6 $ (3,231 ) $ 1,029 Net income $ 1,070 $ 1,070 $ 2,155 $ 6 $ (3,231 ) $ 1,070 Other comprehensive income, net of tax Other comprehensive income, net of tax 2 2 2 2 (6 ) 2 Total comprehensive income $ 1,072 $ 1,072 $ 2,157 $ 8 $ (3,237 ) $ 1,072 (1) The amortized imputed discount on EIP receivables previously recognized as Interest income has been retrospectively reclassified as Other revenues. See Note 1 - Basis of Presentation for further detail. |
Schedule of Condensed Consolidating Statement of Cash Flows Information | Condensed Consolidating Statement of Cash Flows Information Three Months Ended September 30, 2017 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Operating activities Net cash provided by (used in) operating activities $ (2 ) $ (1,554 ) $ 3,904 $ 14 $ — $ 2,362 Investing activities Purchases of property and equipment — — (1,441 ) — — (1,441 ) Purchases of spectrum licenses and other intangible assets, including deposits — — (15 ) — — (15 ) Other, net — — 1 — — 1 Net cash used in investing activities — — (1,455 ) — — (1,455 ) Financing activities Proceeds from issuance of long-term debt — 500 — — — 500 Proceeds from borrowing on revolving credit facility, net — 1,055 — — — 1,055 Repayments of revolving credit facility — — (1,735 ) — — (1,735 ) Repayments of capital lease obligations — — (141 ) — — (141 ) Repayments of short-term debt for purchases of inventory, property and equipment, net — — (4 ) — — (4 ) Tax withholdings on share-based awards — — (6 ) — — (6 ) Dividends on preferred stock (13 ) — — — — (13 ) Other, net 1 — (6 ) — — (5 ) Net cash (used in) provided by financing activities (12 ) 1,555 (1,892 ) — — (349 ) Change in cash and cash equivalents (14 ) 1 557 14 — 558 Cash and cash equivalents Beginning of period 43 1 121 16 — 181 End of period $ 29 $ 2 $ 678 $ 30 $ — $ 739 Condensed Consolidating Statement of Cash Flows Information Three Months Ended September 30, 2016 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Operating activities Net cash provided by (used in) operating activities $ 1 $ (84 ) $ 1,850 $ 8 $ (35 ) $ 1,740 Investing activities Purchases of property and equipment — — (1,159 ) — — (1,159 ) Purchases of spectrum licenses and other intangible assets, including deposits — — (705 ) — — (705 ) Other, net — — 5 — — 5 Net cash used in investing activities — — (1,859 ) — — (1,859 ) Financing activities Repayments of capital lease obligations — — (54 ) — — (54 ) Repayments of long-term debt — — (5 ) — — (5 ) Tax withholdings on share-based awards — — (3 ) — — (3 ) Intercompany dividend paid — — — (35 ) 35 — Dividends on preferred stock (13 ) — — — — (13 ) Other, net 11 — (3 ) — — 8 Net cash used in financing activities (2 ) — (65 ) (35 ) 35 (67 ) Change in cash and cash equivalents (1 ) (84 ) (74 ) (27 ) — (186 ) Cash and cash equivalents Beginning of period 367 2,683 2,439 49 — 5,538 End of period $ 366 $ 2,599 $ 2,365 $ 22 $ — $ 5,352 Condensed Consolidating Statement of Cash Flows Information Nine Months Ended September 30, 2017 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Operating activities Net cash provided by (used in) operating activities $ — $ (16,429 ) $ 22,370 $ 43 $ (80 ) $ 5,904 Investing activities Purchases of property and equipment — — (4,316 ) — — (4,316 ) Purchases of spectrum licenses and other intangible assets, including deposits — — (5,820 ) — — (5,820 ) Equity investment in subsidiary (308 ) — — — 308 — Other, net — — (2 ) — — (2 ) Net cash used in investing activities (308 ) — (10,138 ) — 308 (10,138 ) Financing activities Proceeds from issuance of long-term debt — 10,480 — — — 10,480 Proceeds from borrowing on revolving credit facility, net — 2,910 — — — 2,910 Repayments of revolving credit facility — — (2,910 ) — — (2,910 ) Repayments of capital lease obligations — — (350 ) — — (350 ) Repayments of short-term debt for purchases of inventory, property and equipment, net — — (296 ) — — (296 ) Repayments of long-term debt — — (10,230 ) — — (10,230 ) Equity investment from parent — 308 — — (308 ) — Tax withholdings on share-based awards — — (101 ) — — (101 ) Intercompany dividend paid — — — (80 ) 80 — Dividends on preferred stock (41 ) — — — — (41 ) Other, net 20 — (9 ) — — 11 Net cash (used in) provided by financing activities (21 ) 13,698 (13,896 ) (80 ) (228 ) (527 ) Change in cash and cash equivalents (329 ) (2,731 ) (1,664 ) (37 ) — (4,761 ) Cash and cash equivalents Beginning of period 358 2,733 2,342 67 — 5,500 End of period $ 29 $ 2 $ 678 $ 30 $ — $ 739 Condensed Consolidating Statement of Cash Flows Information Nine Months Ended September 30, 2016 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating and Eliminating Adjustments Consolidated Operating activities Net cash provided by (used in) operating activities $ 4 $ (2,165 ) $ 6,745 $ 59 $ (110 ) $ 4,533 Investing activities Purchases of property and equipment — — (3,843 ) — — (3,843 ) Purchases of spectrum licenses and other intangible assets, including deposits — — (3,544 ) — — (3,544 ) Sales of short-term investments — 2,000 998 — — 2,998 Other, net — — 3 — — 3 Net cash provided by (used in) investing activities — 2,000 (6,386 ) — — (4,386 ) Financing activities Proceeds from issuance of long-term debt — 997 — — — 997 Repayments of capital lease obligations — — (133 ) — — (133 ) Repayments of short-term debt for purchases of inventory, property and equipment, net — — (150 ) — — (150 ) Repayments of long-term debt — — (15 ) — — (15 ) Tax withholdings on share-based awards — — (52 ) — — (52 ) Intercompany dividend paid — — — (110 ) 110 — Dividends on preferred stock (41 ) — — — — (41 ) Other, net 25 — (8 ) — — 17 Net cash (used in) provided by financing activities (16 ) 997 (358 ) (110 ) 110 623 Change in cash and cash equivalents (12 ) 832 1 (51 ) — 770 Cash and cash equivalents Beginning of period 378 1,767 2,364 73 — 4,582 End of period $ 366 $ 2,599 $ 2,365 $ 22 $ — $ 5,352 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other revenues | $ 272,000,000 | $ 224,000,000 | $ 775,000,000 | $ 670,000,000 |
Total revenues | 10,019,000,000 | 9,305,000,000 | 29,845,000,000 | 27,256,000,000 |
Operating income | 1,323,000,000 | 1,048,000,000 | 3,776,000,000 | 3,049,000,000 |
Interest income | 2,000,000 | 3,000,000 | 15,000,000 | 9,000,000 |
Total other expense, net | (417,000,000) | (450,000,000) | (1,329,000,000) | (1,328,000,000) |
Net income | 550,000,000 | 366,000,000 | $ 1,829,000,000 | 1,070,000,000 |
Average amortization period, deferred contract costs | 24 months | |||
Net cash provided by (used in) operating activities | 2,362,000,000 | 1,740,000,000 | $ 5,904,000,000 | 4,533,000,000 |
Net cash provided by investing activities | (1,455,000,000) | (1,859,000,000) | (10,138,000,000) | (4,386,000,000) |
Net cash (used in) provided by financing activities | 349,000,000 | 67,000,000 | 527,000,000 | (623,000,000) |
Minimum [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Incremental contract acquisition costs requiring capitalization and amortization | 450,000,000 | 450,000,000 | ||
Maximum [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Incremental contract acquisition costs requiring capitalization and amortization | 550,000,000 | 550,000,000 | ||
Accounting Standards Update 2016-15 [Member] | Adjustments for New Accounting Principle, Early Adoption [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net cash provided by (used in) operating activities | (1,000,000,000) | (1,000,000,000) | (2,800,000,000) | (2,800,000,000) |
Net cash provided by investing activities | 1,000,000,000 | 1,000,000,000 | 2,800,000,000 | 2,800,000,000 |
Accounting Standards Update 2016-15 [Member] | Adjustment for Debt Prepayments and Debt Extinguishment Costs [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net cash provided by (used in) operating activities | 0 | 188,000,000 | ||
Net cash (used in) provided by financing activities | 0 | 188,000,000 | ||
Discount On Equipment Installment Plan Receivables [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other revenues | 272,000,000 | 224,000,000 | 775,000,000 | 670,000,000 |
Total revenues | 10,019,000,000 | 9,305,000,000 | 29,845,000,000 | 27,256,000,000 |
Operating income | 1,323,000,000 | 1,048,000,000 | 3,776,000,000 | 3,049,000,000 |
Interest income | 2,000,000 | 3,000,000 | 15,000,000 | 9,000,000 |
Total other expense, net | (417,000,000) | (450,000,000) | (1,329,000,000) | (1,328,000,000) |
Net income | 550,000,000 | 366,000,000 | 1,829,000,000 | 1,070,000,000 |
Discount On Equipment Installment Plan Receivables [Member] | Unadjusted [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other revenues | 198,000,000 | 165,000,000 | 571,000,000 | 481,000,000 |
Total revenues | 9,945,000,000 | 9,246,000,000 | 29,641,000,000 | 27,067,000,000 |
Operating income | 1,249,000,000 | 989,000,000 | 3,572,000,000 | 2,860,000,000 |
Interest income | 76,000,000 | 62,000,000 | 219,000,000 | 198,000,000 |
Total other expense, net | (343,000,000) | (391,000,000) | (1,125,000,000) | (1,139,000,000) |
Net income | 550,000,000 | 366,000,000 | 1,829,000,000 | 1,070,000,000 |
Discount On Equipment Installment Plan Receivables [Member] | Change in Accounting Principle [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other revenues | 74,000,000 | 59,000,000 | 204,000,000 | 189,000,000 |
Total revenues | 74,000,000 | 59,000,000 | 204,000,000 | 189,000,000 |
Operating income | 74,000,000 | 59,000,000 | 204,000,000 | 189,000,000 |
Interest income | (74,000,000) | (59,000,000) | (204,000,000) | (189,000,000) |
Total other expense, net | (74,000,000) | (59,000,000) | (204,000,000) | (189,000,000) |
Net income | $ 0 | $ 0 | $ 0 | $ 0 |
Significant Transactions Narrat
Significant Transactions Narrative (Details) $ in Millions | Sep. 18, 2017USD ($) | Apr. 30, 2017Licenses | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)agreementLicenses | Sep. 30, 2016USD ($) |
Significant Transactions [Line Items] | ||||||
Operating income | $ 1,323 | $ 1,048 | $ 3,776 | $ 3,049 | ||
Net income | 550 | $ 366 | $ 1,829 | $ 1,070 | ||
Number of licenses | Licenses | 1,525 | 1,525 | ||||
Renewable energy purchase agreements | agreement | 2 | |||||
Iowa Wireless [Member] | ||||||
Significant Transactions [Line Items] | ||||||
Unconsolidated subsidiary ownership percentage | 54.00% | |||||
Purchase price of unconsolidated subsidiary | $ 25 | |||||
Hurricane [Member] | ||||||
Significant Transactions [Line Items] | ||||||
Operating income | (148) | $ (148) | ||||
Net income | $ (90) | $ (90) |
Equipment Installment Plan Re31
Equipment Installment Plan Receivables EIP Receivables (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan, maximum payment term | 24 months | |
EIP receivables, gross | $ 3,599 | $ 3,230 |
Unamortized imputed discount | (233) | (195) |
EIP receivables, net of unamortized imputed discount | 3,366 | 3,035 |
Allowance for credit losses | (130) | (121) |
Equipment installment plan receivables, net | 3,236 | 2,914 |
Equipment Installment Plan Receivables, Net [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, net | 2,136 | 1,930 |
Equipment Installment Plan Receivables Due After One Year, Net [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, net | $ 1,100 | $ 984 |
Equipment Installment Plan Re32
Equipment Installment Plan Receivables Gross Receivables by Credit Category (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables, gross | $ 3,599 | $ 3,230 |
Unbilled Revenues [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables | 3,374 | 3,029 |
Billed Revenues [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables | 150 | 128 |
Equipment installment plan receivables, past due | 75 | 73 |
Prime [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables, gross | 1,556 | 1,419 |
Prime [Member] | Unbilled Revenues [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables | 1,471 | 1,343 |
Prime [Member] | Billed Revenues [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables | 60 | 51 |
Equipment installment plan receivables, past due | 25 | 25 |
Subprime [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables, gross | 2,043 | 1,811 |
Subprime [Member] | Unbilled Revenues [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables | 1,903 | 1,686 |
Subprime [Member] | Billed Revenues [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables | 90 | 77 |
Equipment installment plan receivables, past due | $ 50 | $ 48 |
Equipment Installment Plan Re33
Equipment Installment Plan Receivables Unamortized Imputed Discount and Allowance for Credit Losses (Details) - Equipment Installment Plan Receivable [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Imputed discount and allowance for credit losses, beginning of period | $ 316 | $ 333 | $ 333 |
Bad debt expense | 215 | 185 | |
Write-offs, net of recoveries | (205) | (201) | |
Change in imputed discount on short-term and long-term EIP receivables | 163 | 103 | |
Impacts from sales of EIP receivables | (126) | (133) | |
Imputed discount and allowance for credit losses, end of period | $ 363 | $ 287 | $ 316 |
Weighted average effective imputed interest rate | 9.70% | 9.00% |
Sales of Certain Receivables Sa
Sales of Certain Receivables Sales of Service Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Nov. 30, 2016 |
Variable Interest Entity [Line Items] | |||
Other current assets | $ 1,817 | $ 1,537 | |
Accounts payable and accrued liabilities | 6,071 | 7,152 | |
Other current liabilities | 396 | 405 | |
Factoring Arrangement [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Revolving receivables facility, maximum borrowing capacity | $ 950 | ||
Revolving receivables facility, outstanding borrowings | 899 | 907 | |
Other current assets | 225 | 207 | |
Accounts payable and accrued liabilities | 13 | 17 | |
Other current liabilities | $ 155 | $ 129 |
Sales of Certain Receivables 35
Sales of Certain Receivables Sales of EIP Receivables (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Aug. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |||
Equipment installment plan, maximum payment term | 24 months | ||
Other current assets | $ 1,817 | $ 1,537 | |
Other assets | 858 | 674 | |
EIP Securitization Arrangement [Member] | |||
Variable Interest Entity [Line Items] | |||
Revolving receivables facility, maximum borrowing capacity | $ 1,200 | ||
Revolving receivables facility, outstanding borrowings | $ 1,200 | 1,200 | |
Equipment installment plan, maximum payment term | 24 months | ||
Other current assets | $ 357 | 371 | |
Other assets | 90 | 83 | |
Other long-term liabilities | $ 2 | $ 4 |
Sales of Certain Receivables 36
Sales of Certain Receivables Sales of Receivables and Continuing Involvement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Other current assets | $ 1,817 | $ 1,817 | $ 1,537 | ||
Other long-term assets | 858 | 858 | 674 | ||
Accounts payable and accrued liabilities | 6,071 | 6,071 | 7,152 | ||
Other current liabilities | 396 | 396 | 405 | ||
Other long-term liabilities | 967 | 967 | 1,026 | ||
Losses from sales of receivables | 67 | $ 59 | 242 | $ 157 | |
Factoring and EIP Securitization Arrangement [Member] | Transferor's Continuing Involvement in Transferred Financial Assets, Transfer Description [Member] | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Maximum exposure to loss, Factoring VIE | 1,200 | 1,200 | |||
Factoring and EIP Securitization Arrangement [Member] | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Derecognized net service receivables and EIP receivables | 2,362 | 2,362 | 2,502 | ||
Other current assets | 582 | 582 | 578 | ||
Deferred purchase price assets | 671 | 671 | 659 | ||
Other long-term assets | 90 | 90 | 83 | ||
Accounts payable and accrued liabilities | 13 | 13 | 17 | ||
Other current liabilities | 155 | 155 | 129 | ||
Other long-term liabilities | 2 | 2 | 4 | ||
Net cash proceeds since inception | 1,963 | 2,030 | |||
Change in net cash proceeds during the year-to-date period | (67) | 536 | |||
Net cash proceeds funded by reinvested collections | 2,030 | 1,494 | |||
Losses from sales of receivables | 67 | $ 59 | 242 | $ 157 | |
Factoring and EIP Securitization Arrangement [Member] | Other current assets - of which, deferred purchase price [Member] | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Deferred purchase price assets | 581 | 581 | 576 | ||
Factoring and EIP Securitization Arrangement [Member] | Other long-term assets - of which, deferred purchase price [Member] | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Deferred purchase price assets | $ 90 | $ 90 | $ 83 |
Spectrum License Transactions N
Spectrum License Transactions Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2017USD ($) | May 31, 2017USD ($) | Apr. 30, 2017USD ($)Licenses | Mar. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Licenses | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | |
Indefinite-lived Intangible Assets [Roll Forward] | ||||||||||
Gains on disposal of spectrum licenses | $ 29 | $ 199 | $ 67 | $ 835 | ||||||
Number of licenses | Licenses | 1,525 | 1,525 | ||||||||
Payments to acquire intangible assets | 15 | $ 705 | $ 5,820 | $ 3,544 | ||||||
Asset purchase deposit | $ 0 | 0 | 0 | $ 2,203 | ||||||
Licensing Agreements [Member] | ||||||||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||||||||
Spectrum licenses, beginning of year | 27,014 | |||||||||
Spectrum license acquisitions | 8,247 | |||||||||
Spectrum licenses transferred to held for sale | (271) | |||||||||
Costs to clear spectrum | 17 | |||||||||
Spectrum licenses, end of year | 35,007 | 35,007 | 35,007 | |||||||
Gains on disposal of spectrum licenses | 29 | $ 37 | ||||||||
Spectrum licenses reclassified to held for sale | 184 | $ 184 | $ 184 | |||||||
Payments to acquire intangible assets | $ 8,000 | |||||||||
Asset purchase deposit | $ 2,200 | |||||||||
Remaining purchase price | $ 5,800 | |||||||||
Licensing Agreements [Member] | Fair Value [Member] | ||||||||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||||||||
Spectrum license acquisitions | $ 115 | $ 123 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value of Short-term Investments and Long-term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 11,850 | $ 18,600 |
Fair Value, Inputs, Level 1 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 12,605 | 19,584 |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Term loans | 0 | 1,980 |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Secured Term Loan [$4.0B] [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Term loans | 4,000 | 0 |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Affiliated Entity [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 3,100 | 5,600 |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Affiliated Entity [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 7,500 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Term loans | 0 | 2,005 |
Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | Secured Term Loan [$4.0B] [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Term loans | 4,020 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | Affiliated Entity [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 3,290 | 5,955 |
Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | Affiliated Entity [Member] | Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 7,897 | 0 |
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred purchase price assets | 671 | 659 |
Guarantee liabilities | 121 | 135 |
Fair Value, Inputs, Level 3 [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred purchase price assets | 671 | 659 |
Guarantee liabilities | $ 121 | $ 135 |
Fair Value Measurements Guarant
Fair Value Measurements Guarantee Liabilities (Details) $ in Billions | Sep. 30, 2017USD ($) |
Fair Value Disclosures [Abstract] | |
Maximum potential for losses under guarantor liabilities | $ 2.2 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 16, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Long-term Debt Rollforward [Roll Forward] | ||||||
Long-term debt, beginning balance | $ 21,832 | |||||
Total debt to third parties, beginning balance | 22,186 | |||||
Total debt, beginning balance | 27,786 | |||||
Proceeds from borrowing on revolving credit facility | $ 1,055 | $ 0 | 2,910 | $ 0 | ||
Issuances and Borrowings | $ 1,495 | 1,495 | ||||
Issuances and Borrowings | 13,390 | |||||
Note Redemptions | (8,365) | (8,365) | ||||
Extinguishments | (1,967) | |||||
Repayments | (4) | 0 | (296) | (150) | ||
Repayments | 0 | (5) | (10,230) | (15) | ||
Repayments | 0 | |||||
Repayments | (2,910) | |||||
Other | 372 | |||||
Other | 299 | |||||
Other | 373 | |||||
Long-term debt, ending balance | 13,163 | 13,163 | ||||
Total debt to third parties, ending balance | 13,721 | 13,721 | ||||
Short-term debt to affiliates, ending balance | 0 | 0 | ||||
Total debt, ending balance | 28,307 | 28,307 | ||||
Issuance of short-term debt for financing of property and equipment | 1 | $ 0 | 291 | $ 150 | ||
Repayments under vendor financing arrangements | 296 | |||||
Vendor financing arrangements | 3 | 3 | ||||
Capital leases outstanding | 1,800 | 1,800 | $ 1,400 | |||
Short-term Debt [Member] | ||||||
Long-term Debt Rollforward [Roll Forward] | ||||||
Short-term debt, beginning balance | 354 | |||||
Proceeds from borrowing on revolving credit facility | 0 | |||||
Note Redemptions | 0 | 0 | ||||
Repayments | 0 | |||||
Other | 224 | |||||
Short-term debt, ending balance | 558 | 558 | ||||
Short-term Debt [Member] | Short-term Debt [Member] | ||||||
Long-term Debt Rollforward [Roll Forward] | ||||||
Extinguishments | (20) | |||||
Long-term Debt [Member] | ||||||
Long-term Debt Rollforward [Roll Forward] | ||||||
Long-term debt, beginning balance | 21,832 | |||||
Issuances and Borrowings | 1,495 | |||||
Note Redemptions | (8,365) | (8,365) | ||||
Repayments | 0 | |||||
Other | 148 | |||||
Long-term debt, ending balance | 13,163 | 13,163 | ||||
Long-term Debt [Member] | Long-term Debt [Member] | ||||||
Long-term Debt Rollforward [Roll Forward] | ||||||
Extinguishments | (1,947) | |||||
Affiliated Entity [Member] | ||||||
Long-term Debt Rollforward [Roll Forward] | ||||||
Total debt to affiliates, beginning balance | 5,600 | |||||
Issuances and Borrowings | 11,895 | |||||
Note Redemptions | 0 | 0 | ||||
Extinguishments | 0 | |||||
Repayments | (2,910) | |||||
Other | 1 | |||||
Total debt to affiliates, ending balance | 14,586 | 14,586 | ||||
Affiliated Entity [Member] | Short-term Debt [Member] | ||||||
Long-term Debt Rollforward [Roll Forward] | ||||||
Short-term debt to affiliates, beginning balance | 0 | |||||
Issuances and Borrowings | 2,910 | |||||
Note Redemptions | 0 | 0 | ||||
Extinguishments | 0 | |||||
Repayments | (2,910) | |||||
Other | 0 | |||||
Short-term debt to affiliates, ending balance | 0 | 0 | ||||
Affiliated Entity [Member] | Long-term Debt [Member] | ||||||
Long-term Debt Rollforward [Roll Forward] | ||||||
Long-term debt to affiliates, beginning balance | 5,600 | |||||
Issuances and Borrowings | 8,985 | |||||
Note Redemptions | 0 | 0 | ||||
Extinguishments | 0 | |||||
Repayments | 0 | |||||
Other | 1 | |||||
Long-term debt to affiliates, ending balance | $ 14,586 | $ 14,586 |
Debt - Debt to Third Parties -
Debt - Debt to Third Parties - Issuances and Borrowings (Details) - USD ($) | Mar. 16, 2017 | Sep. 30, 2017 |
Debt Instrument [Line Items] | ||
Principal Issuances | $ 1,500,000,000 | $ 1,500,000,000 |
Issuance Costs | 5,000,000 | |
Net proceeds from Issuance of Long-Term Debt | $ 1,495,000,000 | 1,495,000,000 |
4.000% Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Principal Issuances | 500,000,000 | |
Issuance Costs | 2,000,000 | |
Net proceeds from Issuance of Long-Term Debt | $ 498,000,000 | |
Interest rate, stated percentage | 4.00% | |
5.125% Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Principal Issuances | $ 500,000,000 | |
Issuance Costs | 2,000,000 | |
Net proceeds from Issuance of Long-Term Debt | $ 498,000,000 | |
Interest rate, stated percentage | 5.125% | |
5.375% Senior Notes Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Principal Issuances | $ 500,000,000 | |
Issuance Costs | 1,000,000 | |
Net proceeds from Issuance of Long-Term Debt | $ 499,000,000 | |
Interest rate, stated percentage | 5.375% |
Debt - Debt to Third Parties 42
Debt - Debt to Third Parties - Notes Redemption (Details) - USD ($) $ in Millions | Apr. 28, 2017 | Apr. 01, 2017 | Mar. 04, 2017 | Feb. 10, 2017 | Sep. 30, 2017 |
Debt Instrument [Line Items] | |||||
Principal Amount | $ 8,365 | ||||
Write-off of premiums, discounts and issuance costs | 115 | ||||
Call penalties | $ 188 | ||||
6.625% Senior Notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price (as a percent) | 102.208% | ||||
5.250% Senior Notes due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price (as a percent) | 101.313% | ||||
6.250% Senior Notes due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price (as a percent) | 103.125% | ||||
Interest rate, stated percentage | 6.25% | ||||
6.464% Senior Notes due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price (as a percent) | 100.00% | ||||
6.542% Senior Notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price (as a percent) | 101.636% | ||||
6.633% Senior Notes due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price (as a percent) | 103.317% | ||||
6.731% Senior Notes due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price (as a percent) | 103.366% | ||||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Amount | $ 8,250 | ||||
Senior Notes [Member] | 6.625% Senior Notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Amount | 1,000 | ||||
Write-off of premiums, discounts and issuance costs | 45 | ||||
Call penalties | $ 22 | ||||
Interest rate, stated percentage | 6.625% | ||||
Senior Notes [Member] | 5.250% Senior Notes due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Amount | $ 500 | ||||
Write-off of premiums, discounts and issuance costs | (1) | ||||
Call penalties | $ 7 | ||||
Interest rate, stated percentage | 5.25% | ||||
Senior Notes [Member] | 6.250% Senior Notes due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Amount | $ 1,750 | ||||
Write-off of premiums, discounts and issuance costs | 71 | ||||
Call penalties | 55 | ||||
Senior Notes [Member] | 6.464% Senior Notes due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Amount | 1,250 | ||||
Write-off of premiums, discounts and issuance costs | 0 | ||||
Call penalties | $ 0 | ||||
Interest rate, stated percentage | 6.464% | ||||
Senior Notes [Member] | 6.542% Senior Notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Amount | $ 1,250 | ||||
Write-off of premiums, discounts and issuance costs | 0 | ||||
Call penalties | $ 21 | ||||
Interest rate, stated percentage | 6.542% | ||||
Senior Notes [Member] | 6.633% Senior Notes due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Amount | $ 1,250 | ||||
Write-off of premiums, discounts and issuance costs | 0 | ||||
Call penalties | $ 41 | ||||
Interest rate, stated percentage | 6.633% | ||||
Senior Notes [Member] | 6.731% Senior Notes due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Amount | $ 1,250 | ||||
Write-off of premiums, discounts and issuance costs | 0 | ||||
Call penalties | $ 42 | ||||
Interest rate, stated percentage | 6.731% |
Debt - Debt to Affiliates - Iss
Debt - Debt to Affiliates - Issuances and Borrowings (Details) - USD ($) | Mar. 16, 2017 | Sep. 30, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Mar. 13, 2017 | Jan. 31, 2017 | Jan. 25, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | $ 1,495,000,000 | $ 1,495,000,000 | ||||||
Extinguishments | (1,967,000,000) | |||||||
Write-off of discounts and issuance costs | (115,000,000) | |||||||
Principal Issuances | $ 1,500,000,000 | 1,500,000,000 | ||||||
Issuance costs related to public debt issuance | 5,000,000 | |||||||
Note Redemptions | (8,365,000,000) | |||||||
Affiliated Entity [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishments | 0 | |||||||
Note Redemptions | 0 | |||||||
Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | 921,000,000 | |||||||
Principal Issuances | 1,000,000,000 | |||||||
Discount | $ (79,000,000) | |||||||
2.00% Margin Plus LIBOR Secured Term Loan due 2022 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 2.00% | |||||||
2.00% Margin Plus LIBOR Secured Term Loan due 2022 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured debt | $ 2,000,000,000 | |||||||
Long-term debt, percentage bearing variable interest, percentage rate | 2.00% | |||||||
2.00% Margin Plus LIBOR Secured Term Loan due 2024 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 2.00% | |||||||
2.00% Margin Plus LIBOR Secured Term Loan due 2024 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured debt | $ 2,000,000,000 | |||||||
Long-term debt, percentage bearing variable interest, percentage rate | 2.00% | |||||||
2.750% Margin Plus LIBOR Secured Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 2.75% | |||||||
Incremental Term Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Issuances | $ 4,000,000,000 | |||||||
Incremental Term Loan Facility [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Issuances | $ 4,000,000,000 | |||||||
Refinanced Secured Term Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured debt | 1,980,000,000 | |||||||
Refinanced Secured Term Loans [Member] | Affiliated Entity [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured debt | 1,980,000,000 | |||||||
2.25% Margin Plus LIBOR Secured Term Loan due 2024 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured debt | $ 2,000,000,000 | |||||||
Long-term debt, percentage bearing variable interest, percentage rate | 2.25% | |||||||
2.00% Margin Plus LIBOR Secured Term Loan due 2022 and 2.25% Margin Plus LIBOR Secured Term Loan due 2024 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Issuance costs related to public debt issuance | $ 0 | |||||||
4.000% Senior Notes Due 2022 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | 498,000,000 | |||||||
Principal Issuances | 500,000,000 | |||||||
Issuance costs related to public debt issuance | $ 2,000,000 | |||||||
Interest rate, stated percentage | 4.00% | |||||||
4.000% Senior Notes Due 2022 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | $ 977,000,000 | |||||||
Principal Issuances | 1,000,000,000 | |||||||
Discount | (23,000,000) | |||||||
5.125% Senior Notes due 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | 498,000,000 | |||||||
Principal Issuances | 500,000,000 | |||||||
Issuance costs related to public debt issuance | $ 2,000,000 | |||||||
Interest rate, stated percentage | 5.125% | |||||||
5.125% Senior Notes due 2025 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | $ 1,222,000,000 | |||||||
Principal Issuances | 1,250,000,000 | |||||||
Discount | (28,000,000) | |||||||
5.375% Senior Notes Due 2027 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | 499,000,000 | |||||||
Principal Issuances | 500,000,000 | |||||||
Issuance costs related to public debt issuance | $ 1,000,000 | |||||||
Interest rate, stated percentage | 5.375% | |||||||
5.375% Senior Notes Due 2027 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | $ 1,222,000,000 | |||||||
Principal Issuances | 1,250,000,000 | |||||||
Discount | (28,000,000) | |||||||
6.288% Senior Reset Notes due 2019 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | 1,250,000,000 | |||||||
Note Redemptions | (1,250,000,000) | |||||||
Discount | 0 | |||||||
Issuance price percentage of face value | 103.144% | |||||||
6.366% Senior Reset Notes due 2020 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | 1,250,000,000 | |||||||
Note Redemptions | (1,250,000,000) | |||||||
Discount | 0 | |||||||
Issuance price percentage of face value | 103.183% | |||||||
Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Note Redemptions | (8,250,000,000) | |||||||
Senior Notes [Member] | Affiliated Entity [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | 4,000,000,000 | |||||||
Extinguishments | (1,980,000,000) | |||||||
Write-off of discounts and issuance costs | 13,000,000 | |||||||
Senior Notes [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | 4,064,000,000 | |||||||
Principal Issuances | 4,000,000,000 | $ 3,000,000,000 | $ 3,500,000,000 | |||||
Premium | 64,000,000 | |||||||
Senior Notes [Member] | 2.00% Margin Plus LIBOR Secured Term Loan due 2022 [Member] | Affiliated Entity [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | 2,000,000,000 | |||||||
Extinguishments | 0 | |||||||
Write-off of discounts and issuance costs | 0 | |||||||
Senior Notes [Member] | 2.00% Margin Plus LIBOR Secured Term Loan due 2024 [Member] | Affiliated Entity [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | 2,000,000,000 | |||||||
Extinguishments | 0 | |||||||
Write-off of discounts and issuance costs | 0 | |||||||
Senior Notes [Member] | 2.750% Margin Plus LIBOR Secured Term Loan [Member] | Affiliated Entity [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishments | (1,980,000,000) | |||||||
Write-off of discounts and issuance costs | $ 13,000,000 | |||||||
Senior Notes [Member] | 4.000% Senior Notes Due 2022 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 4.00% | |||||||
Senior Notes [Member] | 5.125% Senior Notes due 2025 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 5.125% | |||||||
Senior Notes [Member] | 5.375% Senior Notes Due 2027 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Issuances | $ 500,000,000 | 750,000,000 | ||||||
Interest rate, stated percentage | 5.375% | |||||||
Senior Notes [Member] | 6.288% Senior Reset Notes due 2019 [Member] | Affiliated Entity [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Issuances | $ 1,250,000,000 | |||||||
Interest rate, stated percentage | 6.288% | |||||||
Senior Notes [Member] | 6.288% Senior Reset Notes due 2019 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 6.288% | |||||||
Senior Notes [Member] | 6.366% Senior Reset Notes due 2020 [Member] | Affiliated Entity [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Issuances | $ 1,250,000,000 | |||||||
Interest rate, stated percentage | 6.366% | |||||||
Senior Notes [Member] | 6.366% Senior Reset Notes due 2020 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 6.366% | |||||||
Senior Notes [Member] | 5.300% Senior Notes due 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 5.30% | |||||||
Senior Notes [Member] | 5.300% Senior Notes due 2021 [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | $ 2,000,000,000 | |||||||
Principal Issuances | 2,000,000,000 | |||||||
Premium | $ 0 | |||||||
Senior Notes [Member] | 6.000% Senior Notes due 2024 [$1.35B] [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 6.00% | |||||||
Senior Notes [Member] | 6.000% Senior Notes due 2024 [$1.35B] [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | $ 1,390,000,000 | |||||||
Principal Issuances | 1,350,000,000 | |||||||
Premium | $ 40,000,000 | |||||||
Senior Notes [Member] | 6.000% Senior Notes due 2024 [$650M] [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 6.00% | |||||||
Senior Notes [Member] | 6.000% Senior Notes due 2024 [$650M] [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from Issuance of Long-Term Debt | $ 674,000,000 | |||||||
Principal Issuances | 650,000,000 | |||||||
Premium | $ 24,000,000 | |||||||
Secured Debt [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Incremental term loan commitment | 2,000,000,000 | $ 660,000,000 | ||||||
Debt instrument, additional debt capacity | $ 2,000,000,000 | |||||||
Senior Reset Notes [Member] | Affiliated Entity [Member] | Deutsche Telekom AG [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Issuances | $ 2,500,000,000 | |||||||
Discount | $ (79,000,000) |
Debt - Debt to Affiliates - Rev
Debt - Debt to Affiliates - Revolving Credit Facility (Details) - Deutsche Telekom AG [Member] - Secured Revolving Credit Facility [Member] - Line of Credit [Member] - Affiliated Entity [Member] - Revolving Credit Facility [$1.5B] [Member] - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Short-term debt to affiliates | $ 0 | $ 0 |
Incremental term loan commitment | $ 1,500,000,000 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 356 | $ 232 | $ 618 | $ 651 | |
Effective income tax rate reconciliation, percent | 39.30% | 38.80% | 25.30% | 37.80% | |
Net tax benefit related to reduction in deferred tax asset valuation allowance | $ 19 | $ 270 | $ 289 | ||
Income tax benefit related to excess tax benefit on share-based compensation | $ 62 | $ 24 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 550 | $ 366 | $ 1,829 | $ 1,070 |
Less: Dividends on mandatory convertible preferred stock | (13) | (13) | (41) | (41) |
Net income attributable to common stockholders | 537 | 353 | 1,788 | 1,029 |
Add: Dividends related to mandatory convertible preferred stock | 13 | 0 | 41 | 0 |
Net income attributable to common stockholders - diluted | $ 550 | $ 353 | $ 1,829 | $ 1,029 |
Weighted average shares outstanding - basic (in shares) | 831,189,779 | 822,998,697 | 829,974,146 | 821,626,675 |
Outstanding stock options and unvested stock awards (in shares) | 7,992,286 | 9,259,122 | 9,523,365 | 9,614,352 |
Mandatory convertible preferred stock (in shares) | 32,238,000 | 0 | 32,238,000 | 0 |
Weighted average shares outstanding - diluted (in shares) | 871,420,065 | 832,257,819 | 871,735,511 | 831,241,027 |
Earnings per share - basic (in USD per share) | $ 0.65 | $ 0.43 | $ 2.15 | $ 1.25 |
Earnings per share - diluted (in USD per share) | $ 0.63 | $ 0.42 | $ 2.10 | $ 1.24 |
Outstanding stock options and unvested stock awards (in shares) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities (in shares) | 0 | 278,675 | 4,760 | 287,375 |
Mandatory convertible preferred stock (in shares) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities (in shares) | 0 | 32,238,000 | 0 | 32,238,000 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - Forecast [Member] | Dec. 15, 2017shares |
Common Stock [Member] | |
Class of Stock [Line Items] | |
Issuance of stock, shares | 32,238,000 |
Minimum [Member] | |
Class of Stock [Line Items] | |
Shares issued upon conversion | 1.6119 |
Maximum [Member] | |
Class of Stock [Line Items] | |
Shares issued upon conversion | 1.9342 |
Commitments and Contingencies O
Commitments and Contingencies Operating Leases and Purchase Commitments (Details) $ in Millions | Sep. 30, 2017USD ($) |
Operating Leases | |
2,018 | $ 2,397 |
2,019 | 2,153 |
2,020 | 1,867 |
2,021 | 1,472 |
2,022 | 1,163 |
Thereafter | 2,240 |
Total | 11,292 |
Purchase Commitments | |
2,018 | 2,477 |
2,019 | 1,210 |
2,020 | 1,015 |
2,021 | 759 |
2,022 | 661 |
Thereafter | 904 |
Total | $ 7,026 |
Guarantor Financial Informati49
Guarantor Financial Information Narrative (Details) - USD ($) | Sep. 30, 2017 | May 31, 2017 | Apr. 30, 2017 | Mar. 31, 2017 | Mar. 16, 2017 | Jan. 31, 2017 | Jan. 25, 2017 |
Condensed Financial Statements, Captions [Line Items] | |||||||
Long-term debt | $ 1,500,000,000 | $ 1,500,000,000 | |||||
Incremental Term Loan Facility [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Long-term debt | $ 4,000,000,000 | ||||||
Refinanced Secured Term Loans [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Secured debt | $ 1,980,000,000 | ||||||
Refinanced Secured Term Loans [Member] | Affiliated Entity [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Secured debt | $ 1,980,000,000 | ||||||
4.000% Senior Notes Due 2022 [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Long-term debt | $ 500,000,000 | ||||||
Interest rate, stated percentage | 4.00% | ||||||
4.000% Senior Notes Due 2022 [Member] | Issuer [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Long-term debt | $ 1,000,000,000 | $ 500,000,000 | |||||
Interest rate, stated percentage | 4.00% | 4.00% | |||||
5.125% Senior Notes due 2025 [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Long-term debt | $ 500,000,000 | ||||||
Interest rate, stated percentage | 5.125% | ||||||
5.125% Senior Notes due 2025 [Member] | Issuer [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Long-term debt | $ 1,250,000,000 | $ 500,000,000 | |||||
Interest rate, stated percentage | 5.125% | 5.125% | |||||
5.375% Senior Notes Due 2027 [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Long-term debt | $ 500,000,000 | ||||||
Interest rate, stated percentage | 5.375% | ||||||
5.375% Senior Notes Due 2027 [Member] | Issuer [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Long-term debt | $ 500,000,000 | $ 750,000,000 | $ 500,000,000 | ||||
Interest rate, stated percentage | 5.375% | 5.375% | 5.375% | ||||
6.288% Senior Reset Notes due 2019 [Member] | Senior Notes [Member] | Affiliated Entity [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Long-term debt | $ 1,250,000,000 | ||||||
Interest rate, stated percentage | 6.288% | ||||||
6.366% Senior Reset Notes due 2020 [Member] | Senior Notes [Member] | Affiliated Entity [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Long-term debt | $ 1,250,000,000 | ||||||
Interest rate, stated percentage | 6.366% | ||||||
5.300% Senior Notes due 2021 [Member] | Senior Notes [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Interest rate, stated percentage | 5.30% | ||||||
5.300% Senior Notes due 2021 [Member] | Issuer [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Long-term debt | $ 2,000,000,000 | ||||||
Interest rate, stated percentage | 5.30% | ||||||
6.000% Senior Notes due 2024 [$1.35B] [Member] | Senior Notes [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Interest rate, stated percentage | 6.00% | ||||||
6.000% Senior Notes due 2024 [$1.35B] [Member] | Issuer [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Long-term debt | $ 1,350,000,000 | ||||||
Interest rate, stated percentage | 6.00% | ||||||
6.000% Senior Notes due 2024 [$650M] [Member] | Senior Notes [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Interest rate, stated percentage | 6.00% | ||||||
6.000% Senior Notes due 2024 [$650M] [Member] | Issuer [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Long-term debt | $ 650,000,000 | ||||||
Interest rate, stated percentage | 6.00% |
Guarantor Financial Informati50
Guarantor Financial Information Condensed Consolidating Balance Sheet Information (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||||||
Cash and cash equivalents | $ 739 | $ 181 | $ 5,500 | $ 5,352 | $ 5,538 | $ 4,582 |
Accounts receivable, net | 1,734 | 1,896 | ||||
Equipment installment plan receivables, net | 2,136 | 1,930 | ||||
Accounts receivable from affiliates | 24 | 40 | ||||
Inventories | 999 | 1,111 | ||||
Asset purchase deposit | 0 | 2,203 | ||||
Other current assets | 1,817 | 1,537 | ||||
Total current assets | 7,449 | 14,217 | ||||
Property and equipment, net | 21,570 | 20,943 | ||||
Goodwill | 1,683 | 1,683 | ||||
Spectrum licenses | 35,007 | 27,014 | ||||
Other intangible assets, net | 256 | 376 | ||||
Investments in subsidiaries, net | 0 | 0 | ||||
Intercompany receivables and note receivables | 0 | 0 | ||||
Equipment installment plan receivables due after one year, net | 1,100 | 984 | ||||
Other assets | 858 | 674 | ||||
Total assets | 67,923 | 65,891 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 6,071 | 7,152 | ||||
Payables to affiliates | 288 | 125 | ||||
Short-term debt | 558 | 354 | ||||
Short-term debt to affiliates | 0 | |||||
Deferred revenue | 790 | 986 | ||||
Other current liabilities | 396 | 405 | ||||
Total current liabilities | 8,103 | 9,022 | ||||
Long-term debt | 13,163 | 21,832 | ||||
Long-term debt to affiliates | 14,586 | 5,600 | ||||
Tower obligations | 2,599 | 2,621 | ||||
Deferred tax liabilities | 5,535 | 4,938 | ||||
Deferred rent expense | 2,693 | 2,616 | ||||
Negative carrying value of subsidiaries, net | 0 | 0 | ||||
Intercompany payables and debt | 0 | 0 | ||||
Other long-term liabilities | 967 | 1,026 | ||||
Total long-term liabilities | 39,543 | 38,633 | ||||
Total stockholders' equity (deficit) | 20,277 | 18,236 | ||||
Total liabilities and stockholders' equity | 67,923 | 65,891 | ||||
Consolidating and Eliminating Adjustments [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||||
Equipment installment plan receivables, net | 0 | 0 | ||||
Accounts receivable from affiliates | (6) | 0 | ||||
Inventories | 0 | 0 | ||||
Asset purchase deposit | 0 | |||||
Other current assets | 0 | 0 | ||||
Total current assets | (6) | 0 | ||||
Property and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Spectrum licenses | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Investments in subsidiaries, net | (57,766) | (52,777) | ||||
Intercompany receivables and note receivables | (9,328) | (7,022) | ||||
Equipment installment plan receivables due after one year, net | 0 | 0 | ||||
Other assets | (215) | (195) | ||||
Total assets | (67,315) | (59,994) | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 0 | 0 | ||||
Payables to affiliates | 0 | 0 | ||||
Short-term debt | 0 | 0 | ||||
Short-term debt to affiliates | (6) | |||||
Deferred revenue | 0 | 0 | ||||
Other current liabilities | 0 | 0 | ||||
Total current liabilities | (6) | 0 | ||||
Long-term debt | 0 | 0 | ||||
Long-term debt to affiliates | 0 | 0 | ||||
Tower obligations | 0 | 0 | ||||
Deferred tax liabilities | (215) | (195) | ||||
Deferred rent expense | 0 | 0 | ||||
Negative carrying value of subsidiaries, net | (596) | (568) | ||||
Intercompany payables and debt | (9,328) | (7,022) | ||||
Other long-term liabilities | 0 | 0 | ||||
Total long-term liabilities | (10,139) | (7,785) | ||||
Total stockholders' equity (deficit) | (57,170) | (52,209) | ||||
Total liabilities and stockholders' equity | (67,315) | (59,994) | ||||
Parent [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 29 | 43 | 358 | 366 | 367 | 378 |
Accounts receivable, net | 0 | 0 | ||||
Equipment installment plan receivables, net | 0 | 0 | ||||
Accounts receivable from affiliates | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Asset purchase deposit | 0 | |||||
Other current assets | 0 | 0 | ||||
Total current assets | 29 | 358 | ||||
Property and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Spectrum licenses | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Investments in subsidiaries, net | 19,823 | 17,682 | ||||
Intercompany receivables and note receivables | 425 | 196 | ||||
Equipment installment plan receivables due after one year, net | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
Total assets | 20,277 | 18,236 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 0 | 0 | ||||
Payables to affiliates | 0 | 0 | ||||
Short-term debt | 0 | 0 | ||||
Short-term debt to affiliates | 0 | |||||
Deferred revenue | 0 | 0 | ||||
Other current liabilities | 0 | 0 | ||||
Total current liabilities | 0 | 0 | ||||
Long-term debt | 0 | 0 | ||||
Long-term debt to affiliates | 0 | 0 | ||||
Tower obligations | 0 | 0 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Deferred rent expense | 0 | 0 | ||||
Negative carrying value of subsidiaries, net | 0 | 0 | ||||
Intercompany payables and debt | 0 | 0 | ||||
Other long-term liabilities | 0 | 0 | ||||
Total long-term liabilities | 0 | 0 | ||||
Total stockholders' equity (deficit) | 20,277 | 18,236 | ||||
Total liabilities and stockholders' equity | 20,277 | 18,236 | ||||
Issuer [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 2 | 1 | 2,733 | 2,599 | 2,683 | 1,767 |
Accounts receivable, net | 0 | 0 | ||||
Equipment installment plan receivables, net | 0 | 0 | ||||
Accounts receivable from affiliates | 6 | 0 | ||||
Inventories | 0 | 0 | ||||
Asset purchase deposit | 0 | |||||
Other current assets | 0 | 0 | ||||
Total current assets | 8 | 2,733 | ||||
Property and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Spectrum licenses | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Investments in subsidiaries, net | 37,943 | 35,095 | ||||
Intercompany receivables and note receivables | 8,903 | 6,826 | ||||
Equipment installment plan receivables due after one year, net | 0 | 0 | ||||
Other assets | 3 | 7 | ||||
Total assets | 46,857 | 44,661 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 201 | 423 | ||||
Payables to affiliates | 250 | 79 | ||||
Short-term debt | 3 | 20 | ||||
Short-term debt to affiliates | 0 | |||||
Deferred revenue | 0 | 0 | ||||
Other current liabilities | 0 | 0 | ||||
Total current liabilities | 454 | 522 | ||||
Long-term debt | 11,913 | 20,741 | ||||
Long-term debt to affiliates | 14,586 | 5,600 | ||||
Tower obligations | 0 | 0 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Deferred rent expense | 0 | 0 | ||||
Negative carrying value of subsidiaries, net | 0 | 0 | ||||
Intercompany payables and debt | 0 | 0 | ||||
Other long-term liabilities | 81 | 116 | ||||
Total long-term liabilities | 26,580 | 26,457 | ||||
Total stockholders' equity (deficit) | 19,823 | 17,682 | ||||
Total liabilities and stockholders' equity | 46,857 | 44,661 | ||||
Guarantor Subsidiaries [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 678 | 121 | 2,342 | 2,365 | 2,439 | 2,364 |
Accounts receivable, net | 1,504 | 1,675 | ||||
Equipment installment plan receivables, net | 2,136 | 1,930 | ||||
Accounts receivable from affiliates | 24 | 40 | ||||
Inventories | 999 | 1,111 | ||||
Asset purchase deposit | 2,203 | |||||
Other current assets | 1,241 | 972 | ||||
Total current assets | 6,582 | 10,273 | ||||
Property and equipment, net | 21,248 | 20,568 | ||||
Goodwill | 1,683 | 1,683 | ||||
Spectrum licenses | 35,007 | 27,014 | ||||
Other intangible assets, net | 256 | 376 | ||||
Investments in subsidiaries, net | 0 | 0 | ||||
Intercompany receivables and note receivables | 0 | 0 | ||||
Equipment installment plan receivables due after one year, net | 1,100 | 984 | ||||
Other assets | 778 | 600 | ||||
Total assets | 66,654 | 61,498 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 5,626 | 6,474 | ||||
Payables to affiliates | 38 | 46 | ||||
Short-term debt | 555 | 334 | ||||
Short-term debt to affiliates | 6 | |||||
Deferred revenue | 790 | 986 | ||||
Other current liabilities | 219 | 258 | ||||
Total current liabilities | 7,234 | 8,098 | ||||
Long-term debt | 1,250 | 1,091 | ||||
Long-term debt to affiliates | 0 | 0 | ||||
Tower obligations | 395 | 400 | ||||
Deferred tax liabilities | 5,750 | 5,133 | ||||
Deferred rent expense | 2,693 | 2,616 | ||||
Negative carrying value of subsidiaries, net | 596 | 568 | ||||
Intercompany payables and debt | 9,119 | 6,785 | ||||
Other long-term liabilities | 884 | 906 | ||||
Total long-term liabilities | 20,687 | 17,499 | ||||
Total stockholders' equity (deficit) | 38,733 | 35,901 | ||||
Total liabilities and stockholders' equity | 66,654 | 61,498 | ||||
Non-Guarantor Subsidiaries [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 30 | $ 16 | 67 | $ 22 | $ 49 | $ 73 |
Accounts receivable, net | 230 | 221 | ||||
Equipment installment plan receivables, net | 0 | 0 | ||||
Accounts receivable from affiliates | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Asset purchase deposit | 0 | |||||
Other current assets | 576 | 565 | ||||
Total current assets | 836 | 853 | ||||
Property and equipment, net | 322 | 375 | ||||
Goodwill | 0 | 0 | ||||
Spectrum licenses | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Investments in subsidiaries, net | 0 | 0 | ||||
Intercompany receivables and note receivables | 0 | 0 | ||||
Equipment installment plan receivables due after one year, net | 0 | 0 | ||||
Other assets | 292 | 262 | ||||
Total assets | 1,450 | 1,490 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 244 | 255 | ||||
Payables to affiliates | 0 | 0 | ||||
Short-term debt | 0 | 0 | ||||
Short-term debt to affiliates | 0 | |||||
Deferred revenue | 0 | 0 | ||||
Other current liabilities | 177 | 147 | ||||
Total current liabilities | 421 | 402 | ||||
Long-term debt | 0 | 0 | ||||
Long-term debt to affiliates | 0 | 0 | ||||
Tower obligations | 2,204 | 2,221 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Deferred rent expense | 0 | 0 | ||||
Negative carrying value of subsidiaries, net | 0 | 0 | ||||
Intercompany payables and debt | 209 | 237 | ||||
Other long-term liabilities | 2 | 4 | ||||
Total long-term liabilities | 2,415 | 2,462 | ||||
Total stockholders' equity (deficit) | (1,386) | (1,374) | ||||
Total liabilities and stockholders' equity | $ 1,450 | $ 1,490 |
Guarantor Financial Informati51
Guarantor Financial Information Condensed Consolidating Statement of Comprehensive Income Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | ||||
Service revenues | $ 7,629 | $ 7,133 | $ 22,403 | $ 20,599 |
Equipment revenues | 2,118 | 1,948 | 6,667 | 5,987 |
Other revenues | 272 | 224 | 775 | 670 |
Total revenues | 10,019 | 9,305 | 29,845 | 27,256 |
Operating expenses | ||||
Cost of services, exclusive of depreciation and amortization shown separately below | 1,594 | 1,436 | 4,520 | 4,286 |
Cost of equipment sales | 2,617 | 2,539 | 8,149 | 7,532 |
Selling, general and administrative | 3,098 | 2,898 | 8,968 | 8,419 |
Depreciation and amortization | 1,416 | 1,568 | 4,499 | 4,695 |
Cost of MetroPCS business combination | 0 | 15 | 0 | 110 |
Gains on disposal of spectrum licenses | (29) | (199) | (67) | (835) |
Total operating expense | 8,696 | 8,257 | 26,069 | 24,207 |
Operating income | 1,323 | 1,048 | 3,776 | 3,049 |
Other income (expense) | ||||
Interest expense | (253) | (376) | (857) | (1,083) |
Interest expense to affiliates | (167) | (76) | (398) | (248) |
Interest income | 2 | 3 | 15 | 9 |
Other income (expense), net | 1 | (1) | (89) | (6) |
Total other expense, net | (417) | (450) | (1,329) | (1,328) |
Income before income taxes | 906 | 598 | 2,447 | 1,721 |
Income tax expense | (356) | (232) | (618) | (651) |
Earnings (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Net Income | 550 | 366 | 1,829 | 1,070 |
Dividends on preferred stock | (13) | (13) | (41) | (41) |
Net income attributable to common stockholders | 537 | 353 | 1,788 | 1,029 |
Other comprehensive income (loss), net of tax | 1 | 2 | 3 | 2 |
Total comprehensive income | 551 | 368 | 1,832 | 1,072 |
Consolidating and Eliminating Adjustments [Member] | ||||
Revenues | ||||
Service revenues | (210) | (209) | (634) | (584) |
Equipment revenues | (42) | (101) | (211) | (341) |
Other revenues | (7) | (4) | (17) | (13) |
Total revenues | (259) | (314) | (862) | (938) |
Operating expenses | ||||
Cost of services, exclusive of depreciation and amortization shown separately below | 0 | 0 | 0 | 0 |
Cost of equipment sales | (42) | (101) | (211) | (340) |
Selling, general and administrative | (217) | (213) | (651) | (598) |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Cost of MetroPCS business combination | 0 | 0 | ||
Gains on disposal of spectrum licenses | 0 | 0 | 0 | 0 |
Total operating expense | (259) | (314) | (862) | (938) |
Operating income | 0 | 0 | 0 | 0 |
Other income (expense) | ||||
Interest expense | 0 | 0 | 0 | 0 |
Interest expense to affiliates | 6 | 0 | 18 | 0 |
Interest income | (6) | 0 | (18) | 0 |
Other income (expense), net | 0 | 0 | 0 | 0 |
Total other expense, net | 0 | 0 | 0 | 0 |
Income before income taxes | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Earnings (loss) of subsidiaries | (1,435) | (1,100) | (4,736) | (3,231) |
Net Income | (1,435) | (1,100) | (4,736) | (3,231) |
Dividends on preferred stock | 0 | 0 | 0 | 0 |
Net income attributable to common stockholders | (1,435) | (1,100) | (4,736) | (3,231) |
Other comprehensive income (loss), net of tax | (2) | (6) | (6) | (6) |
Total comprehensive income | (1,437) | (1,106) | (4,742) | (3,237) |
Parent [Member] | ||||
Revenues | ||||
Service revenues | 0 | 0 | 0 | 0 |
Equipment revenues | 0 | 0 | 0 | 0 |
Other revenues | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Operating expenses | ||||
Cost of services, exclusive of depreciation and amortization shown separately below | 0 | 0 | 0 | 0 |
Cost of equipment sales | 0 | 0 | 0 | 0 |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Cost of MetroPCS business combination | 0 | 0 | ||
Gains on disposal of spectrum licenses | 0 | 0 | 0 | 0 |
Total operating expense | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Other income (expense) | ||||
Interest expense | 0 | 0 | 0 | 0 |
Interest expense to affiliates | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Other income (expense), net | 0 | 0 | 0 | 0 |
Total other expense, net | 0 | 0 | 0 | 0 |
Income before income taxes | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Earnings (loss) of subsidiaries | 550 | 366 | 1,829 | 1,070 |
Net Income | 550 | 366 | 1,829 | 1,070 |
Dividends on preferred stock | (13) | (13) | (41) | (41) |
Net income attributable to common stockholders | 537 | 353 | 1,788 | 1,029 |
Other comprehensive income (loss), net of tax | 1 | 2 | 3 | 2 |
Total comprehensive income | 551 | 368 | 1,832 | 1,072 |
Issuer [Member] | ||||
Revenues | ||||
Service revenues | 0 | 0 | 0 | 0 |
Equipment revenues | 0 | 0 | 0 | 0 |
Other revenues | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Operating expenses | ||||
Cost of services, exclusive of depreciation and amortization shown separately below | 0 | 0 | 0 | 0 |
Cost of equipment sales | 0 | 0 | 0 | 0 |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Cost of MetroPCS business combination | 0 | 0 | ||
Gains on disposal of spectrum licenses | 0 | 0 | 0 | 0 |
Total operating expense | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Other income (expense) | ||||
Interest expense | (176) | (303) | (634) | (881) |
Interest expense to affiliates | (167) | (76) | (398) | (248) |
Interest income | 7 | 7 | 24 | 23 |
Other income (expense), net | 1 | 0 | (87) | 0 |
Total other expense, net | (335) | (372) | (1,095) | (1,106) |
Income before income taxes | (335) | (372) | (1,095) | (1,106) |
Income tax expense | 0 | 0 | 0 | 0 |
Earnings (loss) of subsidiaries | 885 | 738 | 2,924 | 2,176 |
Net Income | 550 | 366 | 1,829 | 1,070 |
Dividends on preferred stock | 0 | 0 | 0 | 0 |
Net income attributable to common stockholders | 550 | 366 | 1,829 | 1,070 |
Other comprehensive income (loss), net of tax | 1 | 2 | 3 | 2 |
Total comprehensive income | 551 | 368 | 1,832 | 1,072 |
Guarantor Subsidiaries [Member] | ||||
Revenues | ||||
Service revenues | 7,312 | 6,822 | 21,457 | 19,683 |
Equipment revenues | 2,160 | 2,049 | 6,878 | 6,328 |
Other revenues | 224 | 180 | 634 | 538 |
Total revenues | 9,696 | 9,051 | 28,969 | 26,549 |
Operating expenses | ||||
Cost of services, exclusive of depreciation and amortization shown separately below | 1,588 | 1,430 | 4,502 | 4,268 |
Cost of equipment sales | 2,418 | 2,340 | 7,622 | 7,104 |
Selling, general and administrative | 3,106 | 2,884 | 8,967 | 8,372 |
Depreciation and amortization | 1,399 | 1,549 | 4,446 | 4,636 |
Cost of MetroPCS business combination | 15 | 110 | ||
Gains on disposal of spectrum licenses | (29) | (199) | (67) | (835) |
Total operating expense | 8,482 | 8,019 | 25,470 | 23,655 |
Operating income | 1,214 | 1,032 | 3,499 | 2,894 |
Other income (expense) | ||||
Interest expense | (30) | (26) | (80) | (61) |
Interest expense to affiliates | (6) | 0 | (18) | 0 |
Interest income | 1 | (4) | 9 | (14) |
Other income (expense), net | 1 | (1) | (1) | (6) |
Total other expense, net | (34) | (31) | (90) | (81) |
Income before income taxes | 1,180 | 1,001 | 3,409 | 2,813 |
Income tax expense | (335) | (242) | (572) | (643) |
Earnings (loss) of subsidiaries | 0 | (4) | (17) | (15) |
Net Income | 845 | 755 | 2,820 | 2,155 |
Dividends on preferred stock | 0 | 0 | 0 | 0 |
Net income attributable to common stockholders | 845 | 755 | 2,820 | 2,155 |
Other comprehensive income (loss), net of tax | 1 | 2 | 3 | 2 |
Total comprehensive income | 846 | 757 | 2,823 | 2,157 |
Non-Guarantor Subsidiaries [Member] | ||||
Revenues | ||||
Service revenues | 527 | 520 | 1,580 | 1,500 |
Equipment revenues | 0 | 0 | 0 | 0 |
Other revenues | 55 | 48 | 158 | 145 |
Total revenues | 582 | 568 | 1,738 | 1,645 |
Operating expenses | ||||
Cost of services, exclusive of depreciation and amortization shown separately below | 6 | 6 | 18 | 18 |
Cost of equipment sales | 241 | 300 | 738 | 768 |
Selling, general and administrative | 209 | 227 | 652 | 645 |
Depreciation and amortization | 17 | 19 | 53 | 59 |
Cost of MetroPCS business combination | 0 | 0 | ||
Gains on disposal of spectrum licenses | 0 | 0 | 0 | 0 |
Total operating expense | 473 | 552 | 1,461 | 1,490 |
Operating income | 109 | 16 | 277 | 155 |
Other income (expense) | ||||
Interest expense | (47) | (47) | (143) | (141) |
Interest expense to affiliates | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Other income (expense), net | (1) | 0 | (1) | 0 |
Total other expense, net | (48) | (47) | (144) | (141) |
Income before income taxes | 61 | (31) | 133 | 14 |
Income tax expense | (21) | 10 | (46) | (8) |
Earnings (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Net Income | 40 | (21) | 87 | 6 |
Dividends on preferred stock | 0 | 0 | 0 | 0 |
Net income attributable to common stockholders | 40 | (21) | 87 | 6 |
Other comprehensive income (loss), net of tax | 0 | 2 | 0 | 2 |
Total comprehensive income | $ 40 | $ (19) | $ 87 | $ 8 |
Guarantor Financial Informati52
Guarantor Financial Information Condensed Consolidating Statement of Cash Flows Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||||
Net cash provided by (used in) operating activities | $ 2,362 | $ 1,740 | $ 5,904 | $ 4,533 |
Investing activities | ||||
Purchases of property and equipment | (1,441) | (1,159) | (4,316) | (3,843) |
Purchases of spectrum licenses and other intangible assets, including deposits | (15) | (705) | (5,820) | (3,544) |
Sales of short-term investments | 0 | 0 | 0 | 2,998 |
Equity investment in subsidiary | 0 | |||
Other, net | 1 | 5 | (2) | 3 |
Net cash used in investing activities | (1,455) | (1,859) | (10,138) | (4,386) |
Financing activities | ||||
Proceeds from issuance of long-term debt | 500 | 0 | 10,480 | 997 |
Proceeds from borrowing on revolving credit facility | 1,055 | 0 | 2,910 | 0 |
Repayments of revolving credit facility | (1,735) | 0 | (2,910) | 0 |
Repayments of capital lease obligations | (141) | (54) | (350) | (133) |
Repayments of short-term debt for purchases of inventory, property and equipment, net | (4) | 0 | (296) | (150) |
Repayments of long-term debt | 0 | (5) | (10,230) | (15) |
Equity investment from parent | 0 | |||
Tax withholdings on share-based awards | (6) | (3) | (101) | (52) |
Intercompany dividend paid | 0 | 0 | 0 | |
Dividends on preferred stock | (13) | (13) | (41) | (41) |
Other, net | (5) | 8 | 11 | 17 |
Net cash (used in) provided by financing activities | (349) | (67) | (527) | 623 |
Change in cash and cash equivalents | 558 | (186) | (4,761) | 770 |
Beginning of period | 181 | 5,538 | 5,500 | 4,582 |
End of period | 739 | 5,352 | 739 | 5,352 |
Consolidating and Eliminating Adjustments [Member] | ||||
Operating activities | ||||
Net cash provided by (used in) operating activities | 0 | (35) | (80) | (110) |
Investing activities | ||||
Purchases of property and equipment | 0 | 0 | 0 | 0 |
Purchases of spectrum licenses and other intangible assets, including deposits | 0 | 0 | 0 | 0 |
Sales of short-term investments | 0 | |||
Equity investment in subsidiary | 308 | |||
Other, net | 0 | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 308 | 0 |
Financing activities | ||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | |
Proceeds from borrowing on revolving credit facility | 0 | 0 | ||
Repayments of revolving credit facility | 0 | 0 | ||
Repayments of capital lease obligations | 0 | 0 | 0 | 0 |
Repayments of short-term debt for purchases of inventory, property and equipment, net | 0 | 0 | 0 | |
Repayments of long-term debt | 0 | 0 | 0 | |
Equity investment from parent | (308) | |||
Tax withholdings on share-based awards | 0 | 0 | 0 | 0 |
Intercompany dividend paid | 35 | 80 | 110 | |
Dividends on preferred stock | 0 | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | 0 | 35 | (228) | 110 |
Change in cash and cash equivalents | 0 | 0 | 0 | 0 |
Beginning of period | 0 | 0 | 0 | 0 |
End of period | 0 | 0 | 0 | 0 |
Parent [Member] | ||||
Operating activities | ||||
Net cash provided by (used in) operating activities | (2) | 1 | 0 | 4 |
Investing activities | ||||
Purchases of property and equipment | 0 | 0 | 0 | 0 |
Purchases of spectrum licenses and other intangible assets, including deposits | 0 | 0 | 0 | 0 |
Sales of short-term investments | 0 | |||
Equity investment in subsidiary | (308) | |||
Other, net | 0 | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | (308) | 0 |
Financing activities | ||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | |
Proceeds from borrowing on revolving credit facility | 0 | 0 | ||
Repayments of revolving credit facility | 0 | 0 | ||
Repayments of capital lease obligations | 0 | 0 | 0 | 0 |
Repayments of short-term debt for purchases of inventory, property and equipment, net | 0 | 0 | 0 | |
Repayments of long-term debt | 0 | 0 | 0 | |
Equity investment from parent | 0 | |||
Tax withholdings on share-based awards | 0 | 0 | 0 | 0 |
Intercompany dividend paid | 0 | 0 | 0 | |
Dividends on preferred stock | (13) | (13) | (41) | (41) |
Other, net | 1 | 11 | 20 | 25 |
Net cash (used in) provided by financing activities | (12) | (2) | (21) | (16) |
Change in cash and cash equivalents | (14) | (1) | (329) | (12) |
Beginning of period | 43 | 367 | 358 | 378 |
End of period | 29 | 366 | 29 | 366 |
Issuer [Member] | ||||
Operating activities | ||||
Net cash provided by (used in) operating activities | (1,554) | (84) | (16,429) | (2,165) |
Investing activities | ||||
Purchases of property and equipment | 0 | 0 | 0 | 0 |
Purchases of spectrum licenses and other intangible assets, including deposits | 0 | 0 | 0 | 0 |
Sales of short-term investments | 2,000 | |||
Equity investment in subsidiary | 0 | |||
Other, net | 0 | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 | 2,000 |
Financing activities | ||||
Proceeds from issuance of long-term debt | 500 | 10,480 | 997 | |
Proceeds from borrowing on revolving credit facility | 1,055 | 2,910 | ||
Repayments of revolving credit facility | 0 | 0 | ||
Repayments of capital lease obligations | 0 | 0 | 0 | 0 |
Repayments of short-term debt for purchases of inventory, property and equipment, net | 0 | 0 | 0 | |
Repayments of long-term debt | 0 | 0 | 0 | |
Equity investment from parent | 308 | |||
Tax withholdings on share-based awards | 0 | 0 | 0 | 0 |
Intercompany dividend paid | 0 | 0 | 0 | |
Dividends on preferred stock | 0 | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | 1,555 | 0 | 13,698 | 997 |
Change in cash and cash equivalents | 1 | (84) | (2,731) | 832 |
Beginning of period | 1 | 2,683 | 2,733 | 1,767 |
End of period | 2 | 2,599 | 2 | 2,599 |
Guarantor Subsidiaries [Member] | ||||
Operating activities | ||||
Net cash provided by (used in) operating activities | 3,904 | 1,850 | 22,370 | 6,745 |
Investing activities | ||||
Purchases of property and equipment | (1,441) | (1,159) | (4,316) | (3,843) |
Purchases of spectrum licenses and other intangible assets, including deposits | (15) | (705) | (5,820) | (3,544) |
Sales of short-term investments | 998 | |||
Equity investment in subsidiary | 0 | |||
Other, net | 1 | 5 | (2) | 3 |
Net cash used in investing activities | (1,455) | (1,859) | (10,138) | (6,386) |
Financing activities | ||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | |
Proceeds from borrowing on revolving credit facility | 0 | 0 | ||
Repayments of revolving credit facility | (1,735) | (2,910) | ||
Repayments of capital lease obligations | (141) | (54) | (350) | (133) |
Repayments of short-term debt for purchases of inventory, property and equipment, net | (4) | (296) | (150) | |
Repayments of long-term debt | (5) | (10,230) | (15) | |
Equity investment from parent | 0 | |||
Tax withholdings on share-based awards | (6) | (3) | (101) | (52) |
Intercompany dividend paid | 0 | 0 | 0 | |
Dividends on preferred stock | 0 | 0 | 0 | 0 |
Other, net | (6) | (3) | (9) | (8) |
Net cash (used in) provided by financing activities | (1,892) | (65) | (13,896) | (358) |
Change in cash and cash equivalents | 557 | (74) | (1,664) | 1 |
Beginning of period | 121 | 2,439 | 2,342 | 2,364 |
End of period | 678 | 2,365 | 678 | 2,365 |
Non-Guarantor Subsidiaries [Member] | ||||
Operating activities | ||||
Net cash provided by (used in) operating activities | 14 | 8 | 43 | 59 |
Investing activities | ||||
Purchases of property and equipment | 0 | 0 | 0 | 0 |
Purchases of spectrum licenses and other intangible assets, including deposits | 0 | 0 | 0 | 0 |
Sales of short-term investments | 0 | |||
Equity investment in subsidiary | 0 | |||
Other, net | 0 | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 | 0 |
Financing activities | ||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | |
Proceeds from borrowing on revolving credit facility | 0 | 0 | ||
Repayments of revolving credit facility | 0 | 0 | ||
Repayments of capital lease obligations | 0 | 0 | 0 | 0 |
Repayments of short-term debt for purchases of inventory, property and equipment, net | 0 | 0 | 0 | |
Repayments of long-term debt | 0 | 0 | 0 | |
Equity investment from parent | 0 | |||
Tax withholdings on share-based awards | 0 | 0 | 0 | 0 |
Intercompany dividend paid | (35) | (80) | (110) | |
Dividends on preferred stock | 0 | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | 0 | (35) | (80) | (110) |
Change in cash and cash equivalents | 14 | (27) | (37) | (51) |
Beginning of period | 16 | 49 | 67 | 73 |
End of period | $ 30 | $ 22 | $ 30 | $ 22 |