Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | T-MOBILE US, INC. | |
Trading Symbol | TMUS | |
Entity Central Index Key | 1283699 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 810,415,343 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $3,032 | $5,315 |
Accounts receivable, net of allowances of $88 and $83 | 1,933 | 1,865 |
Equipment installment plan receivables, net | 3,259 | 3,062 |
Accounts receivable from affiliates | 85 | 76 |
Inventories | 1,230 | 1,085 |
Deferred tax assets, net | 1,033 | 988 |
Other current assets | 1,063 | 1,593 |
Total current assets | 11,635 | 13,984 |
Property and equipment, net | 16,483 | 16,245 |
Goodwill | 1,683 | 1,683 |
Spectrum licenses | 24,062 | 21,955 |
Other intangible assets, net | 805 | 870 |
Equipment installment plan receivables due after one year, net | 1,583 | 1,628 |
Other assets | 307 | 288 |
Total assets | 56,558 | 56,653 |
Current liabilities | ||
Accounts payable and accrued liabilities | 6,793 | 7,364 |
Current payables to affiliates | 216 | 231 |
Short-term debt | 467 | 87 |
Deferred revenue | 584 | 459 |
Other current liabilities | 589 | 635 |
Total current liabilities | 8,649 | 8,776 |
Long-term debt | 16,261 | 16,273 |
Long-term debt to affiliates | 5,600 | 5,600 |
Long-term financial obligation | 2,523 | 2,521 |
Deferred tax liabilities | 4,855 | 4,873 |
Deferred rents | 2,366 | 2,331 |
Other long-term liabilities | 654 | 616 |
Total long-term liabilities | 32,259 | 32,214 |
Commitments and contingencies | ||
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; 811,666,776 and 808,851,108 shares issued, 810,284,271 and 807,468,603 shares outstanding | 0 | 0 |
Additional paid-in capital | 38,553 | 38,503 |
Treasury stock, at cost, 1,382,505 and 1,382,505 shares issued | 0 | 0 |
Accumulated other comprehensive income | 1 | 1 |
Accumulated deficit | -22,904 | -22,841 |
Total stockholders' equity | 15,650 | 15,663 |
Total liabilities and stockholders' equity | $56,558 | $56,653 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Allowances | $88 | $83 |
5.50% Mandatory convertible preferred stock series A, par value | $0.00 | $0.00 |
5.50% Mandatory convertible preferred stock series A, shares authorized | 100,000,000 | 100,000,000 |
5.50% Mandatory convertible preferred stock series A, shares issued | 20,000,000 | 20,000,000 |
5.50% Mandatory convertible preferred stock series A, shares outstanding | 20,000,000 | 20,000,000 |
5.50% Mandatory convertible preferred stock series A, aggregate liquidation value | $1,000 | $1,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 811,666,776 | 808,851,108 |
Common stock, shares outstanding | 810,284,271 | 807,468,603 |
Treasury stock, at cost | 1,382,505 | 1,382,505 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Branded postpaid revenues | $3,774 | $3,447 |
Branded prepaid revenues | 1,842 | 1,648 |
Wholesale revenues | 158 | 174 |
Roaming and other service revenues | 45 | 68 |
Total service revenues | 5,819 | 5,337 |
Equipment sales | 1,851 | 1,448 |
Other revenues | 108 | 90 |
Total revenues | 7,778 | 6,875 |
Operating expenses | ||
Cost of services, exclusive of depreciation and amortization shown separately below | 1,395 | 1,464 |
Cost of equipment sales | 2,679 | 2,286 |
Selling, general and administrative | 2,372 | 2,096 |
Depreciation and amortization | 1,087 | 1,055 |
Cost of MetroPCS business combination | 128 | 12 |
Gains on disposal of spectrum licenses | 0 | -10 |
Total operating expenses | 7,661 | 6,903 |
Operating income (loss) | 117 | -28 |
Other income (expense) | ||
Interest expense to affiliates | -64 | -18 |
Interest expense | -261 | -276 |
Interest income | 112 | 75 |
Other expense, net | -8 | -6 |
Total other expense, net | -221 | -225 |
Loss before income taxes | -104 | -253 |
Income tax benefit | -41 | -102 |
Net loss | -63 | -151 |
Dividends on preferred stock | -14 | 0 |
Net loss attributable to common stockholders | -77 | -151 |
Other comprehensive loss, net of tax | ||
Unrealized loss on available-for-sale securities, net of tax effect of $0 and ($1) | 0 | -3 |
Other comprehensive loss, net of tax | 0 | -3 |
Total comprehensive loss | ($63) | ($154) |
Loss per share | ||
Basic | ($0.09) | ($0.19) |
Diluted | ($0.09) | ($0.19) |
Weighted average shares outstanding | ||
Basic | 808,605,526 | 802,520,723 |
Diluted | 808,605,526 | 802,520,723 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Unrealized loss on available for sale securities, tax | $0 | ($1) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net cash provided by operating activities | $489 | $759 |
Investing activities | ||
Purchases of property and equipment | -982 | -947 |
Purchases of spectrum licenses and other intangible assets | -1,696 | 0 |
Other, net | -14 | -18 |
Net cash used in investing activities | -2,692 | -965 |
Financing activities | ||
Repayments of short-term debt for purchases of inventory, property and equipment, net | -63 | -226 |
Other, net | -17 | 12 |
Net cash used in financing activities | -80 | -214 |
Change in cash and cash equivalents | -2,283 | -420 |
Cash and cash equivalents | ||
Beginning of period | 5,315 | 5,891 |
End of period | $3,032 | $5,471 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
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” 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 the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2014. Certain prior period amounts have been reclassified to conform to the current presentation. | |
The condensed consolidated financial statements include the balances and results of operations of T-Mobile and its consolidated subsidiaries. T-Mobile consolidates all majority-owned subsidiaries over which it exercises control, as well as variable interest entities (“VIE”) where it is deemed to be the primary beneficiary and VIEs which cannot be deconsolidated. 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 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 management believes are reasonable under the circumstances. These estimates are inherently subject to judgment and actual results could differ from those estimates. | |
Recently-Issued Accounting Standards | |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” The standard requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. The standard will become effective for T-Mobile beginning January 1, 2016. The implementation of this standard is not expected to have a significant impact on T-Mobile’s consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” 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 standard will become effective for T-Mobile beginning January 1, 2017. The Company is currently evaluating the guidance to determine the potential impact on T-Mobile’s consolidated financial statements. |
Significant_Transactions
Significant Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Significant Transactions | Note 2 – Significant Transactions |
Spectrum License Transactions | |
In 2014, the Federal Communications Commission (“FCC”) began conducting an auction of Advanced Wireless Service (“AWS”) spectrum licenses. In 2015, the FCC announced T-Mobile was the winning bidder of AWS spectrum licenses covering approximately 97 million people for an aggregate bid price of $1.8 billion. T-Mobile paid the FCC $1.4 billion for the AWS spectrum licenses in the first quarter of 2015, which is in addition to a deposit of $0.4 billion provided to the FCC in 2014. In the second quarter of 2015, T-Mobile received the AWS spectrum licenses. The amounts paid were classified as spectrum licenses as of March 31, 2015. |
Equipment_Installment_Plan_Rec
Equipment Installment Plan Receivables | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||
Equipment Installment Plan Receivables | Note 3 – Equipment Installment Plan Receivables | |||||||||||||||||||||||
T-Mobile offers certain retail customers the option to pay for their devices and other purchases in installments over a period of up to 24 months using an Equipment Installment Plan (“EIP”). | ||||||||||||||||||||||||
The following table summarizes the EIP receivables: | ||||||||||||||||||||||||
(in millions) | March 31, | December 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
EIP receivables, gross | $ | 5,275 | $ | 5,138 | ||||||||||||||||||||
Unamortized imputed discount | (327 | ) | (332 | ) | ||||||||||||||||||||
EIP receivables, net of unamortized imputed discount | 4,948 | 4,806 | ||||||||||||||||||||||
Allowance for credit losses | (106 | ) | (116 | ) | ||||||||||||||||||||
EIP receivables, net | $ | 4,842 | $ | 4,690 | ||||||||||||||||||||
Classified on the balance sheet as: | ||||||||||||||||||||||||
Equipment installment plan receivables, net | $ | 3,259 | $ | 3,062 | ||||||||||||||||||||
Equipment installment plan receivables due after one year, net | 1,583 | 1,628 | ||||||||||||||||||||||
EIP receivables, net | $ | 4,842 | $ | 4,690 | ||||||||||||||||||||
T-Mobile uses 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, T-Mobile classifies 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 are generally 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: | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
(in millions) | Prime | Subprime | Total | Prime | Subprime | Total | ||||||||||||||||||
Unbilled | $ | 2,623 | $ | 2,359 | $ | 4,982 | $ | 2,639 | $ | 2,213 | $ | 4,852 | ||||||||||||
Billed – Current | 107 | 100 | 207 | 104 | 95 | 199 | ||||||||||||||||||
Billed – Past Due | 35 | 51 | 86 | 35 | 52 | 87 | ||||||||||||||||||
EIP receivables, gross | $ | 2,765 | $ | 2,510 | $ | 5,275 | $ | 2,778 | $ | 2,360 | $ | 5,138 | ||||||||||||
Activity in the unamortized imputed discount and allowance for credit losses balances for the EIP receivables was as follows: | ||||||||||||||||||||||||
(in millions) | March 31, | |||||||||||||||||||||||
2015 | ||||||||||||||||||||||||
Imputed discount and allowance for credit losses, beginning of period | $ | 448 | ||||||||||||||||||||||
Bad debt expense | 77 | |||||||||||||||||||||||
Write-offs, net of recoveries | (87 | ) | ||||||||||||||||||||||
Change in imputed discount on short-term and long-term EIP receivables | (5 | ) | ||||||||||||||||||||||
Imputed discount and allowance for credit losses, end of period | $ | 433 | ||||||||||||||||||||||
Imputed discount and allowance for credit losses includes the long-term portion of imputed discount of $57 million and $61 million as of March 31, 2015 and December 31, 2014, respectively. The EIP receivables had weighted average effective imputed interest rates of 9.5% and 9.7% as of March 31, 2015 and December 31, 2014, respectively. |
Factoring_Arrangement
Factoring Arrangement | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Transfers and Servicing [Abstract] | ||||||||
Factoring Arrangement | Note 4 – Factoring Arrangement | |||||||
Transaction Overview | ||||||||
In 2014, T-Mobile entered into a two-year factoring arrangement to sell certain service accounts receivable on a revolving basis with a current maximum funding limit of $640 million, subject to change upon notification to certain third parties. 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 factoring arrangement, the Company formed a wholly-owned subsidiary, which qualifies as a bankruptcy remote special purpose entity (“Factoring SPE”). Pursuant to the factoring arrangement, certain subsidiaries of T-Mobile transfer selected receivables to the Factoring SPE. The Factoring SPE then sells the receivables to an unaffiliated entity (“Factoring VIE”), which was established to facilitate the sale of ownership interest in the receivables to certain third parties. | ||||||||
Variable Interest Entity | ||||||||
The Company determined the Factoring VIE is a VIE as it lacks sufficient equity to finance its activities. The Company has a variable interest in the Factoring VIE, but is not the primary beneficiary as it lacks the power to direct the activities that most significantly impact the Factoring VIE’s economic performance. The activities which most significantly impact the Factoring VIE’s economic performance include committing the Factoring VIE to legal agreements to purchase or sell assets, selecting which receivables are purchased in the factoring arrangement, determining whether the Factoring VIE will sell interests in the purchased service receivables to other parties, and servicing of the receivables. While T-Mobile acts as the servicer of the sold receivables, which is considered a significant activity of the VIE, the Company is acting as an agent in its capacity as the servicer and the counterparty to the factoring arrangement has the ability to remove T-Mobile as the servicing agent of the receivables at will with no recourse available to T-Mobile. As the Company has determined it is not the primary beneficiary and does not hold any equity interest, the results of the Factoring VIE are not consolidated into the Company’s condensed consolidated financial statements. | ||||||||
Sales of Receivables | ||||||||
The sales of receivables through the factoring arrangement are treated as sales of financial assets. Upon sale, T-Mobile derecognizes the receivables, as well as the related allowances, and recognizes the net proceeds in cash provided by operating activities. | ||||||||
The proceeds were net of a receivable for the remainder of the purchase price (“deferred purchase price”), which is received from collections on the service receivables. T-Mobile recognizes the deferred purchase price in cash provided by operating activities due to the short duration of the receivables sold and the nature of the related activity. The deferred purchase price represents a financial asset that can be settled in such a way that T-Mobile may not recover substantially all of its recorded investment due to the creditworthiness of customers. As a result, T-Mobile elected at inception to classify the deferred purchase price as a trading security carried at fair value with unrealized gains and losses from changes in fair value included in selling, general and administrative expense. The fair value of the deferred purchase price was determined based on a discounted cash flow model which uses unobservable inputs (Level 3 inputs), including customer default rates. Due to the short-term nature of the underlying financial assets, the carrying value approximated fair value. Other current assets, which primarily consisted of the deferred purchase price, accounts payable and accrued liabilities, and other current liabilities related to the factoring arrangement were held by the Factoring SPE. | ||||||||
The following table summarizes the impacts to the condensed consolidated balance sheets: | ||||||||
(in millions) | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Derecognized net receivables | $ | 677 | $ | 768 | ||||
Net cash proceeds since inception | 492 | 610 | ||||||
Other current assets | 204 | 204 | ||||||
Accounts payable and accrued liabilities | — | 13 | ||||||
Other current liabilities | 65 | 55 | ||||||
Net expenses resulting from the sales of receivables are recognized in selling, general and administrative expense. Prior to the sales of receivables, T-Mobile recognizes impairment charges, rather than bad debt expense, to reduce the receivables to fair value for estimated losses resulting from uncollectible balances. Net expenses also include any resulting gains or losses from the sales of receivables, unrealized gains and losses related to the deferred purchase price, and factoring fees. For the three months ended March 31, 2015 and 2014, T-Mobile recognized net expenses of $65 million and $27 million, respectively. | ||||||||
Continuing Involvement | ||||||||
T-Mobile has continuing involvement with the sold receivables as it services the receivables and is required to repurchase certain receivables, including aged receivables and receivables where write-off is imminent, pursuant to the factoring arrangement. T-Mobile will continue to service the customer 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 are reinvested in new receivable sales. While servicing the receivables, the same policies and procedures are applied to the sold receivables that apply to owned receivables and T-Mobile continues to maintain normal relationships with its customers. | ||||||||
In addition, T-Mobile has continuing involvement related to the sold receivables as it may be responsible for absorbing additional credit losses pursuant to the agreement. The Company’s maximum exposure to loss related to the involvement with the Factoring VIE was $457 million as of March 31, 2015. The maximum exposure to loss, which is required disclosure under GAAP, represents an estimated loss that would be incurred under severe, hypothetical circumstances whereby the Company would not receive the portion of the contractual proceeds withheld by the Factoring VIE and would also be required to repurchase the maximum amount of receivables pursuant to the agreement without consideration for any recovery. As T-Mobile believes the probability of these circumstances occurring is very remote, the maximum exposure to loss is not an indication of the Company’s expected loss. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | Note 5 – Fair Value Measurements | |||||||||||||||
Long-term Debt | ||||||||||||||||
The fair value of the Company’s long-term debt to third parties were determined based on quoted market prices in active markets, and therefore was classified as Level 1 in the fair value hierarchy. The fair value of the Company’s long-term debt to affiliates was determined based on a discounted cash flow approach which considers the future cash flows discounted at current rates. The approach includes an estimate for the stand-alone credit risk of T-Mobile. The Company’s long-term debt to affiliates were classified as Level 2 in the fair value hierarchy. | ||||||||||||||||
The carrying amounts and fair values of the Company’s long-term debt were as follows: | ||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
(in millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Long-term debt to third parties principal, excluding capital leases | $ | 15,600 | $ | 16,329 | $ | 15,600 | $ | 16,034 | ||||||||
Long-term debt to affiliates | 5,600 | 5,963 | 5,600 | 5,780 | ||||||||||||
Although the Company has determined the estimated fair value using available market information and commonly accepted valuation methodologies, considerable judgment was required in interpreting market data to develop fair value estimates for the long-term debt. The fair value estimates were based on information available as of March 31, 2015 and December 31, 2014. As such, the Company’s estimates are not necessarily indicative of the amount the Company could realize in a current market exchange. |
Loss_Per_Share
Loss Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Loss Per Share | Note 6 – Loss Per Share | |||||||
The computation of basic and diluted loss per share was as follows: | ||||||||
Three Months Ended March 31, | ||||||||
(in millions, except shares and per share amounts) | 2015 | 2014 | ||||||
Net loss | $ | (63 | ) | $ | (151 | ) | ||
Preferred stock dividends | (14 | ) | — | |||||
Net loss attributable to common stockholders | $ | (77 | ) | $ | (151 | ) | ||
Weighted average shares outstanding - basic | 808,605,526 | 802,520,723 | ||||||
Dilutive effect of outstanding stock options and unvested stock awards | — | — | ||||||
Weighted average shares outstanding - diluted | 808,605,526 | 802,520,723 | ||||||
Loss per share - basic | $ | (0.09 | ) | $ | (0.19 | ) | ||
Loss per share - diluted | $ | (0.09 | ) | $ | (0.19 | ) | ||
Potentially dilutive securities were not included in the computation of diluted loss per share for certain periods if to do so would have been antidilutive. As the Company incurred net losses for the three months ended March 31, 2015 and 2014, all outstanding stock options of 3 million and 5 million and unvested stock awards of 23 million and 24 million as of March 31, 2015 and 2014, respectively, were excluded. Unvested performance stock units were based on the number of shares ultimately expected to vest based on T-Mobile’s business performance against the specified performance goal. As the Company incurred a net loss for the three months ended March 31, 2015, common stock equivalents of 32 million related to the mandatory convertible preferred stock as of March 31, 2015 were excluded. For the three months ended March 31, 2014, there was no mandatory convertible preferred stock outstanding. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7 – Commitments and Contingencies |
Commitments | |
Guarantee Liabilities | |
T-Mobile offers a device trade-in program, Just Upgrade My Phone (“JUMP!”), which provides eligible customers a specified-price trade-in right to upgrade their device. For customers who enroll in the device trade-in program, the Company defers the portion of equipment sales revenue which represents the estimated value of the specified-price trade-in right guarantee. When customers upgrade their devices, the difference between the trade-in credit to the customer and the fair value of the returned devices is recorded against the guarantee liabilities. Guarantee liabilities included in other current liabilities were $266 million and $286 million as of March 31, 2015 and December 31, 2014, respectively. The estimated EIP receivable balance if all enrolled handset upgrade program customers were to claim their benefit, not including any trade-in value of the required used handset, was $2.8 billion as of March 31, 2015. This is not an indication of the Company’s expected loss exposure as it does not consider the expected fair value of the used handset, which is required to be in good working condition at trade-in, nor does it consider the probability and timing of trade-in. | |
Contingencies and Litigation | |
T-Mobile is involved in various lawsuits, claims, investigations and proceedings that arise in the ordinary course of business, which include numerous court actions alleging that T-Mobile is 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 matters described above have progressed to various stages and a small number may go to trial in the coming 12 months if they are not otherwise resolved. T-Mobile has established an accrual with respect to certain of these matters, where appropriate, which is reflected in the condensed consolidated financial statements but that T-Mobile does not consider, individually or in the aggregate, material. An accrual is established when T-Mobile believes it is both probable that a loss has been incurred and an amount can be reasonably estimated. For other matters, where the Company has not determined that a loss is probable or because the amount of loss cannot be reasonably estimated, the Company has 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 T-Mobile does not expect that the ultimate resolution of these proceedings, individually or in the aggregate will have a material adverse effect on the Company’s 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 T-Mobile’s current understanding of relevant facts and circumstances. As such, T-Mobile’s view of these matters is subject to inherent uncertainties and may change in the future. |
Additional_Financial_Informati
Additional Financial Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Financial Statement Elements [Abstract] | ||||||||
Additional Financial Information | Note 8 – Additional Financial Information | |||||||
Network Decommissioning Costs | ||||||||
Prior to the closing of the business combination with MetroPCS Communications, Inc. (“MetroPCS”), T-Mobile developed integration plans which included the decommissioning of the MetroPCS Code Division Multiple Access (“CDMA”) network and certain other redundant network cell sites. In 2014, T-Mobile began decommissioning the MetroPCS CDMA network and redundant network cell sites. Network decommissioning costs primarily relate to the acceleration of lease costs for decommissioned cell sites for which T-Mobile has ceased use and will no longer receive any economic benefit. Accrued liabilities for network decommissioning costs will be relieved as cash payments are made over the remaining lease terms through 2028. In addition, network decommissioning costs include the write off of deferred items related to certain cell sites, which consist of prepaid rent expense, favorable leases, unfavorable leases and deferred rent expense. T-Mobile recognized network decommissioning costs, including effects of deferred items, of $128 million for the three months ended March 31, 2015. T-Mobile intends to decommission certain cell sites and incur additional network decommissioning costs in the range of $375 million to $475 million, a majority of which are expected to be recognized through the rest of 2015. | ||||||||
Activities in liabilities for network decommissioning costs were as follows: | ||||||||
(in millions) | March 31, | |||||||
2015 | ||||||||
Balances, beginning of period | $ | 239 | ||||||
Network decommissioning costs, excluding effects of deferred items | 136 | |||||||
Cash payments | (33 | ) | ||||||
Balances, end of period | $ | 342 | ||||||
Classified on the balance sheet as: | ||||||||
Accounts payable and accrued liabilities | $ | 105 | ||||||
Other long-term liabilities | 237 | |||||||
Network decommissioning liabilities | $ | 342 | ||||||
In addition, T-Mobile settled asset retirement obligations of $37 million for the three months ended March 31, 2015 in connection with the decommissioning of certain cell sites. | ||||||||
Supplemental Statements of Cash Flows Information | ||||||||
The following table summarizes T-Mobile’s supplemental cash flows information: | ||||||||
Three Months Ended March 31, | ||||||||
(in millions) | 2015 | 2014 | ||||||
Interest and income tax payments: | ||||||||
Interest payments, net of amounts capitalized | $ | 327 | $ | 286 | ||||
Income tax payments | 2 | — | ||||||
Noncash investing and financing activities: | ||||||||
Decrease in accounts payable and accrued liabilities for purchases of property and equipment | (178 | ) | (13 | ) | ||||
Issuance of short-term debt for financing of property and equipment purchases | 443 | 45 | ||||||
Assets acquired under capital lease obligations | 3 | 3 | ||||||
Guarantor_Financial_Informatio
Guarantor Financial Information | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||||||
Guarantor Subsidiaries | Note 9 – Guarantor Financial Information | |||||||||||||||||||||||
Pursuant to the applicable indentures and supplemental indentures, the long-term debt, excluding capital leases, issued by T-Mobile USA, Inc. (“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”). The guarantees of the Guarantor Subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. The indentures 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 indentures and the 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 March 31, 2015 and December 31, 2014 and for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||||||||||
Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
(in millions) | Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating and Eliminating Adjustments | Consolidated | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 393 | $ | 1,152 | $ | 1,352 | $ | 135 | $ | — | $ | 3,032 | ||||||||||||
Accounts receivable, net | — | — | 1,885 | 48 | — | 1,933 | ||||||||||||||||||
Equipment installment plan receivables, net | — | — | 3,259 | — | — | 3,259 | ||||||||||||||||||
Accounts receivable from affiliates | — | — | 85 | — | — | 85 | ||||||||||||||||||
Inventories | — | — | 1,230 | — | — | 1,230 | ||||||||||||||||||
Deferred tax assets, net | — | — | 1,033 | — | — | 1,033 | ||||||||||||||||||
Other current assets | — | — | 834 | 229 | — | 1,063 | ||||||||||||||||||
Total current assets | 393 | 1,152 | 9,678 | 412 | — | 11,635 | ||||||||||||||||||
Property and equipment, net (1) | — | — | 15,967 | 516 | — | 16,483 | ||||||||||||||||||
Goodwill | — | — | 1,683 | — | — | 1,683 | ||||||||||||||||||
Spectrum licenses | — | — | 24,062 | — | — | 24,062 | ||||||||||||||||||
Other intangible assets, net | — | — | 805 | — | — | 805 | ||||||||||||||||||
Investments in subsidiaries, net | 15,325 | 30,565 | — | — | (45,890 | ) | — | |||||||||||||||||
Intercompany receivables | — | 5,891 | — | — | (5,891 | ) | — | |||||||||||||||||
Equipment installment plan receivables due after one year, net | — | — | 1,583 | — | — | 1,583 | ||||||||||||||||||
Other assets | 2 | 20 | 275 | 137 | (127 | ) | 307 | |||||||||||||||||
Total assets | $ | 15,720 | $ | 37,628 | $ | 54,053 | $ | 1,065 | $ | (51,908 | ) | $ | 56,558 | |||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | — | $ | 246 | $ | 6,453 | $ | 94 | $ | — | $ | 6,793 | ||||||||||||
Current payables to affiliates | — | 136 | 80 | — | — | 216 | ||||||||||||||||||
Short-term debt | — | 443 | 24 | — | — | 467 | ||||||||||||||||||
Deferred revenue | — | — | 584 | — | — | 584 | ||||||||||||||||||
Other current liabilities | — | — | 524 | 65 | — | 589 | ||||||||||||||||||
Total current liabilities | — | 825 | 7,665 | 159 | — | 8,649 | ||||||||||||||||||
Long-term debt | — | 15,878 | 383 | — | — | 16,261 | ||||||||||||||||||
Long-term debt to affiliates | — | 5,600 | — | — | — | 5,600 | ||||||||||||||||||
Long-term financial obligation (1) | — | — | 271 | 2,252 | — | 2,523 | ||||||||||||||||||
Deferred tax liabilities | — | — | 4,982 | — | (127 | ) | 4,855 | |||||||||||||||||
Deferred rents | — | — | 2,366 | — | — | 2,366 | ||||||||||||||||||
Negative carrying value of subsidiaries, net | — | — | 789 | — | (789 | ) | — | |||||||||||||||||
Intercompany payables | 70 | — | 5,713 | 108 | (5,891 | ) | — | |||||||||||||||||
Other long-term liabilities | — | — | 654 | — | — | 654 | ||||||||||||||||||
Total long-term liabilities | 70 | 21,478 | 15,158 | 2,360 | (6,807 | ) | 32,259 | |||||||||||||||||
Total stockholders' equity | 15,650 | 15,325 | 31,230 | (1,454 | ) | (45,101 | ) | 15,650 | ||||||||||||||||
Total liabilities and stockholders' equity | $ | 15,720 | $ | 37,628 | $ | 54,053 | $ | 1,065 | $ | (51,908 | ) | $ | 56,558 | |||||||||||
-1 | Assets and liabilities for Non-Guarantor Subsidiaries are primarily included in VIEs related to the Tower Transaction. See Note 9 – Tower Transaction and Related Long-Term Financial Obligation included in the Annual Report on Form 10-K for the year ended December 31, 2014. | |||||||||||||||||||||||
Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
(in millions) | Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating and Eliminating Adjustments | Consolidated | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,278 | $ | 2,246 | $ | 697 | $ | 94 | $ | — | $ | 5,315 | ||||||||||||
Accounts receivable, net | — | — | 1,817 | 48 | — | 1,865 | ||||||||||||||||||
Equipment installment plan receivables, net | — | — | 3,062 | — | — | 3,062 | ||||||||||||||||||
Accounts receivable from affiliates | — | — | 76 | — | — | 76 | ||||||||||||||||||
Inventories | — | — | 1,085 | — | — | 1,085 | ||||||||||||||||||
Deferred tax assets, net | — | — | 988 | — | — | 988 | ||||||||||||||||||
Other current assets | — | 3 | 1,341 | 249 | — | 1,593 | ||||||||||||||||||
Total current assets | 2,278 | 2,249 | 9,066 | 391 | — | 13,984 | ||||||||||||||||||
Property and equipment, net (1) | — | — | 15,708 | 537 | — | 16,245 | ||||||||||||||||||
Goodwill | — | — | 1,683 | — | — | 1,683 | ||||||||||||||||||
Spectrum licenses | — | — | 21,955 | — | — | 21,955 | ||||||||||||||||||
Other intangible assets, net | — | — | 870 | — | — | 870 | ||||||||||||||||||
Investments in subsidiaries, net | 13,470 | 30,385 | — | — | (43,855 | ) | — | |||||||||||||||||
Intercompany receivables | — | 2,773 | — | — | (2,773 | ) | — | |||||||||||||||||
Equipment installment plan receivables due after one year, net | — | — | 1,628 | — | — | 1,628 | ||||||||||||||||||
Other assets | 2 | 17 | 259 | 124 | (114 | ) | 288 | |||||||||||||||||
Total assets | $ | 15,750 | $ | 35,424 | $ | 51,169 | $ | 1,052 | $ | (46,742 | ) | $ | 56,653 | |||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | — | $ | 349 | $ | 6,914 | $ | 101 | $ | — | $ | 7,364 | ||||||||||||
Current payables to affiliates | — | 56 | 175 | — | — | 231 | ||||||||||||||||||
Short-term debt | — | 63 | 24 | — | — | 87 | ||||||||||||||||||
Deferred revenue | — | — | 459 | — | — | 459 | ||||||||||||||||||
Other current liabilities | — | — | 580 | 55 | — | 635 | ||||||||||||||||||
Total current liabilities | — | 468 | 8,152 | 156 | — | 8,776 | ||||||||||||||||||
Long-term debt | — | 15,886 | 387 | — | — | 16,273 | ||||||||||||||||||
Long-term debt to affiliates | — | 5,600 | — | — | — | 5,600 | ||||||||||||||||||
Long-term financial obligation (1) | — | — | 271 | 2,250 | — | 2,521 | ||||||||||||||||||
Deferred tax liabilities | — | — | 4,987 | — | (114 | ) | 4,873 | |||||||||||||||||
Deferred rents | — | — | 2,331 | — | — | 2,331 | ||||||||||||||||||
Negative carrying value of subsidiaries, net | — | — | 780 | — | (780 | ) | — | |||||||||||||||||
Intercompany payables | 87 | — | 2,589 | 97 | (2,773 | ) | — | |||||||||||||||||
Other long-term liabilities | — | — | 616 | — | — | 616 | ||||||||||||||||||
Total long-term liabilities | 87 | 21,486 | 11,961 | 2,347 | (3,667 | ) | 32,214 | |||||||||||||||||
Total stockholders' equity | 15,663 | 13,470 | 31,056 | (1,451 | ) | (43,075 | ) | 15,663 | ||||||||||||||||
Total liabilities and stockholders' equity | $ | 15,750 | $ | 35,424 | $ | 51,169 | $ | 1,052 | $ | (46,742 | ) | $ | 56,653 | |||||||||||
-1 | Assets and liabilities for Non-Guarantor Subsidiaries are primarily included in VIEs related to the Tower Transaction. See Note 9 – Tower Transaction and Related Long-Term Financial Obligation included in the Annual Report on Form 10-K for the year ended December 31, 2014. | |||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) Information | ||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
(in millions) | Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating and Eliminating Adjustments | Consolidated | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Service revenues | $ | — | $ | — | $ | 5,562 | $ | 389 | $ | (132 | ) | $ | 5,819 | |||||||||||
Equipment sales | — | — | 1,927 | — | (76 | ) | 1,851 | |||||||||||||||||
Other revenues | — | — | 69 | 42 | (3 | ) | 108 | |||||||||||||||||
Total revenues | — | — | 7,558 | 431 | (211 | ) | 7,778 | |||||||||||||||||
Operating expenses | ||||||||||||||||||||||||
Cost of services, exclusive of depreciation and amortization shown separately below | — | — | 1,389 | 6 | — | 1,395 | ||||||||||||||||||
Cost of equipment sales | — | — | 2,605 | 150 | (76 | ) | 2,679 | |||||||||||||||||
Selling, general and administrative | — | — | 2,340 | 167 | (135 | ) | 2,372 | |||||||||||||||||
Depreciation and amortization | — | — | 1,065 | 22 | — | 1,087 | ||||||||||||||||||
Cost of MetroPCS business combination | — | — | 128 | — | — | 128 | ||||||||||||||||||
Total operating expenses | — | — | 7,527 | 345 | (211 | ) | 7,661 | |||||||||||||||||
Operating income | — | — | 31 | 86 | — | 117 | ||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||
Interest expense to affiliates | — | (64 | ) | — | — | — | (64 | ) | ||||||||||||||||
Interest expense | — | (200 | ) | (14 | ) | (47 | ) | — | (261 | ) | ||||||||||||||
Interest income | — | — | 112 | — | — | 112 | ||||||||||||||||||
Other income (expense), net | — | 32 | — | — | (40 | ) | (8 | ) | ||||||||||||||||
Total other income (expense), net | — | (232 | ) | 98 | (47 | ) | (40 | ) | (221 | ) | ||||||||||||||
Income (loss) before income taxes | — | (232 | ) | 129 | 39 | (40 | ) | (104 | ) | |||||||||||||||
Income tax expense (benefit) | — | — | (48 | ) | 7 | — | (41 | ) | ||||||||||||||||
Earnings (loss) of subsidiaries | (63 | ) | 169 | (12 | ) | — | (94 | ) | — | |||||||||||||||
Net income (loss) | (63 | ) | (63 | ) | 165 | 32 | (134 | ) | (63 | ) | ||||||||||||||
Dividends on preferred stock | (14 | ) | — | — | — | — | (14 | ) | ||||||||||||||||
Net income (loss) attributable to common stockholders | (77 | ) | (63 | ) | 165 | 32 | (134 | ) | (77 | ) | ||||||||||||||
Other comprehensive (loss), net of tax | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | ||||||||||||||||||
Total comprehensive income (loss) | $ | (63 | ) | $ | (63 | ) | $ | 165 | $ | 32 | $ | (134 | ) | $ | (63 | ) | ||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) Information | ||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
(in millions) | Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating and Eliminating Adjustments | Consolidated | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Service revenues | $ | — | $ | — | $ | 5,150 | $ | 265 | $ | (78 | ) | $ | 5,337 | |||||||||||
Equipment sales | — | — | 1,597 | — | (149 | ) | 1,448 | |||||||||||||||||
Other revenues | — | — | 58 | 34 | (2 | ) | 90 | |||||||||||||||||
Total revenues | — | — | 6,805 | 299 | (229 | ) | 6,875 | |||||||||||||||||
Operating expenses | ||||||||||||||||||||||||
Cost of services, exclusive of depreciation and amortization shown separately below | — | — | 1,460 | 4 | — | 1,464 | ||||||||||||||||||
Cost of equipment sales | — | — | 2,313 | 138 | (165 | ) | 2,286 | |||||||||||||||||
Selling, general and administrative | — | — | 2,060 | 100 | (64 | ) | 2,096 | |||||||||||||||||
Depreciation and amortization | — | — | 1,035 | 20 | — | 1,055 | ||||||||||||||||||
Cost of MetroPCS business combination | — | — | 12 | — | — | 12 | ||||||||||||||||||
Gain on disposal of spectrum licenses | — | — | (10 | ) | — | — | (10 | ) | ||||||||||||||||
Total operating expenses | — | — | 6,870 | 262 | (229 | ) | 6,903 | |||||||||||||||||
Operating income (loss) | — | — | (65 | ) | 37 | — | (28 | ) | ||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||
Interest expense to affiliates | — | (18 | ) | — | — | — | (18 | ) | ||||||||||||||||
Interest expense | — | (214 | ) | (18 | ) | (44 | ) | — | (276 | ) | ||||||||||||||
Interest income | — | — | 75 | — | — | 75 | ||||||||||||||||||
Other income (expense), net | — | (8 | ) | 2 | — | — | (6 | ) | ||||||||||||||||
Total other income (expense), net | — | (240 | ) | 59 | (44 | ) | — | (225 | ) | |||||||||||||||
Loss before income taxes | — | (240 | ) | (6 | ) | (7 | ) | — | (253 | ) | ||||||||||||||
Income tax benefit | — | — | (100 | ) | (2 | ) | — | (102 | ) | |||||||||||||||
Earnings (loss) of subsidiaries | (151 | ) | 89 | (15 | ) | — | 77 | — | ||||||||||||||||
Net income (loss) | (151 | ) | (151 | ) | 79 | (5 | ) | 77 | (151 | ) | ||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||
Other comprehensive loss, net of tax | (3 | ) | (3 | ) | (3 | ) | — | 6 | (3 | ) | ||||||||||||||
Total comprehensive income (loss) | $ | (154 | ) | $ | (154 | ) | $ | 76 | $ | (5 | ) | $ | 83 | $ | (154 | ) | ||||||||
Condensed Consolidating Statement of Cash Flows Information | ||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
(in millions) | Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating and Eliminating Adjustments | Consolidated | ||||||||||||||||||
Operating activities | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 20 | $ | (2,999 | ) | $ | 3,427 | $ | 81 | $ | (40 | ) | $ | 489 | ||||||||||
Investing activities | ||||||||||||||||||||||||
Purchases of property and equipment | — | — | (982 | ) | — | — | (982 | ) | ||||||||||||||||
Purchases of spectrum licenses and other intangible assets | — | — | (1,696 | ) | — | — | (1,696 | ) | ||||||||||||||||
Investment in subsidiaries | (1,905 | ) | — | — | — | 1,905 | — | |||||||||||||||||
Other, net | — | — | (14 | ) | — | — | (14 | ) | ||||||||||||||||
Net cash used in investing activities | (1,905 | ) | — | (2,692 | ) | — | 1,905 | (2,692 | ) | |||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds from capital contribution | — | 1,905 | — | — | (1,905 | ) | — | |||||||||||||||||
Repayments of short-term debt for purchases of inventory, property and equipment, net | — | — | (63 | ) | — | — | (63 | ) | ||||||||||||||||
Intercompany dividend paid | — | — | — | (40 | ) | 40 | — | |||||||||||||||||
Other, net | — | — | (17 | ) | — | — | (17 | ) | ||||||||||||||||
Net cash provided by (used in) financing activities | — | 1,905 | (80 | ) | (40 | ) | (1,865 | ) | (80 | ) | ||||||||||||||
Change in cash and cash equivalents | (1,885 | ) | (1,094 | ) | 655 | 41 | — | (2,283 | ) | |||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||
Beginning of period | 2,278 | 2,246 | 697 | 94 | — | 5,315 | ||||||||||||||||||
End of period | $ | 393 | $ | 1,152 | $ | 1,352 | $ | 135 | $ | — | $ | 3,032 | ||||||||||||
Condensed Consolidating Statement of Cash Flows Information | ||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
(in millions) | Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating and Eliminating Adjustments | Consolidated | ||||||||||||||||||
Operating activities | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 5 | $ | (466 | ) | $ | 1,199 | $ | 21 | $ | — | $ | 759 | |||||||||||
Investing activities | ||||||||||||||||||||||||
Purchases of property and equipment | — | — | (947 | ) | — | — | (947 | ) | ||||||||||||||||
Other, net | — | — | (18 | ) | — | — | (18 | ) | ||||||||||||||||
Net cash used in investing activities | — | — | (965 | ) | — | — | (965 | ) | ||||||||||||||||
Financing activities | ||||||||||||||||||||||||
Repayments of short-term debt for purchases of property and equipment | — | — | (226 | ) | — | — | (226 | ) | ||||||||||||||||
Other, net | 14 | — | (2 | ) | — | — | 12 | |||||||||||||||||
Net cash provided by (used in) financing activities | 14 | — | (228 | ) | — | — | (214 | ) | ||||||||||||||||
Change in cash and cash equivalents | 19 | (466 | ) | 6 | 21 | — | (420 | ) | ||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||
Beginning of period | 2,960 | 2,698 | 57 | 176 | — | 5,891 | ||||||||||||||||||
End of period | $ | 2,979 | $ | 2,232 | $ | 63 | $ | 197 | $ | — | $ | 5,471 | ||||||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements of T-Mobile US, Inc. (“T-Mobile” 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 the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2014. Certain prior period amounts have been reclassified to conform to the current presentation. |
Principles of Consolidation | The condensed consolidated financial statements include the balances and results of operations of T-Mobile and its consolidated subsidiaries. T-Mobile consolidates all majority-owned subsidiaries over which it exercises control, as well as variable interest entities (“VIE”) where it is deemed to be the primary beneficiary and VIEs which cannot be deconsolidated. Intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | The preparation of financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires 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 management believes are reasonable under the circumstances. These estimates are inherently subject to judgment and actual results could differ from those estimates. |
Recently-Issued Accounting Standards | Recently-Issued Accounting Standards |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” The standard requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. The standard will become effective for T-Mobile beginning January 1, 2016. The implementation of this standard is not expected to have a significant impact on T-Mobile’s consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” 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 standard will become effective for T-Mobile beginning January 1, 2017. The Company is currently evaluating the guidance to determine the potential impact on T-Mobile’s consolidated financial statements. |
Equipment_Installment_Plan_Rec1
Equipment Installment Plan Receivables (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||
Schedule of Equipment Installment Plan Receivables | The following table summarizes the EIP receivables: | |||||||||||||||||||||||
(in millions) | March 31, | December 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
EIP receivables, gross | $ | 5,275 | $ | 5,138 | ||||||||||||||||||||
Unamortized imputed discount | (327 | ) | (332 | ) | ||||||||||||||||||||
EIP receivables, net of unamortized imputed discount | 4,948 | 4,806 | ||||||||||||||||||||||
Allowance for credit losses | (106 | ) | (116 | ) | ||||||||||||||||||||
EIP receivables, net | $ | 4,842 | $ | 4,690 | ||||||||||||||||||||
Classified on the balance sheet as: | ||||||||||||||||||||||||
Equipment installment plan receivables, net | $ | 3,259 | $ | 3,062 | ||||||||||||||||||||
Equipment installment plan receivables due after one year, net | 1,583 | 1,628 | ||||||||||||||||||||||
EIP receivables, net | $ | 4,842 | $ | 4,690 | ||||||||||||||||||||
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: | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
(in millions) | Prime | Subprime | Total | Prime | Subprime | Total | ||||||||||||||||||
Unbilled | $ | 2,623 | $ | 2,359 | $ | 4,982 | $ | 2,639 | $ | 2,213 | $ | 4,852 | ||||||||||||
Billed – Current | 107 | 100 | 207 | 104 | 95 | 199 | ||||||||||||||||||
Billed – Past Due | 35 | 51 | 86 | 35 | 52 | 87 | ||||||||||||||||||
EIP receivables, gross | $ | 2,765 | $ | 2,510 | $ | 5,275 | $ | 2,778 | $ | 2,360 | $ | 5,138 | ||||||||||||
Schedule of Unamortized Imputed Discount and Allowance for Credit Losses for Equipment Installment Plan Receivables | Activity in the unamortized imputed discount and allowance for credit losses balances for the EIP receivables was as follows: | |||||||||||||||||||||||
(in millions) | March 31, | |||||||||||||||||||||||
2015 | ||||||||||||||||||||||||
Imputed discount and allowance for credit losses, beginning of period | $ | 448 | ||||||||||||||||||||||
Bad debt expense | 77 | |||||||||||||||||||||||
Write-offs, net of recoveries | (87 | ) | ||||||||||||||||||||||
Change in imputed discount on short-term and long-term EIP receivables | (5 | ) | ||||||||||||||||||||||
Imputed discount and allowance for credit losses, end of period | $ | 433 | ||||||||||||||||||||||
Factoring_Arrangement_Factorin
Factoring Arrangement Factoring Arrangement (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Transfers and Servicing [Abstract] | ||||||||
Schedule of Factoring Arrangement | The following table summarizes the impacts to the condensed consolidated balance sheets: | |||||||
(in millions) | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Derecognized net receivables | $ | 677 | $ | 768 | ||||
Net cash proceeds since inception | 492 | 610 | ||||||
Other current assets | 204 | 204 | ||||||
Accounts payable and accrued liabilities | — | 13 | ||||||
Other current liabilities | 65 | 55 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Schedule of Carrying Values and Fair Values of Long-term Debt | The carrying amounts and fair values of the Company’s long-term debt were as follows: | |||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
(in millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Long-term debt to third parties principal, excluding capital leases | $ | 15,600 | $ | 16,329 | $ | 15,600 | $ | 16,034 | ||||||||
Long-term debt to affiliates | 5,600 | 5,963 | 5,600 | 5,780 | ||||||||||||
Loss_Per_Share_Tables
Loss Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of Loss Per Share | The computation of basic and diluted loss per share was as follows: | |||||||
Three Months Ended March 31, | ||||||||
(in millions, except shares and per share amounts) | 2015 | 2014 | ||||||
Net loss | $ | (63 | ) | $ | (151 | ) | ||
Preferred stock dividends | (14 | ) | — | |||||
Net loss attributable to common stockholders | $ | (77 | ) | $ | (151 | ) | ||
Weighted average shares outstanding - basic | 808,605,526 | 802,520,723 | ||||||
Dilutive effect of outstanding stock options and unvested stock awards | — | — | ||||||
Weighted average shares outstanding - diluted | 808,605,526 | 802,520,723 | ||||||
Loss per share - basic | $ | (0.09 | ) | $ | (0.19 | ) | ||
Loss per share - diluted | $ | (0.09 | ) | $ | (0.19 | ) |
Additional_Financial_Informati1
Additional Financial Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Financial Statement Elements [Abstract] | ||||||||
Schedule of Network Decommissioning | Activities in liabilities for network decommissioning costs were as follows: | |||||||
(in millions) | March 31, | |||||||
2015 | ||||||||
Balances, beginning of period | $ | 239 | ||||||
Network decommissioning costs, excluding effects of deferred items | 136 | |||||||
Cash payments | (33 | ) | ||||||
Balances, end of period | $ | 342 | ||||||
Classified on the balance sheet as: | ||||||||
Accounts payable and accrued liabilities | $ | 105 | ||||||
Other long-term liabilities | 237 | |||||||
Network decommissioning liabilities | $ | 342 | ||||||
Schedule of Supplemental Cash Flow Information | The following table summarizes T-Mobile’s supplemental cash flows information: | |||||||
Three Months Ended March 31, | ||||||||
(in millions) | 2015 | 2014 | ||||||
Interest and income tax payments: | ||||||||
Interest payments, net of amounts capitalized | $ | 327 | $ | 286 | ||||
Income tax payments | 2 | — | ||||||
Noncash investing and financing activities: | ||||||||
Decrease in accounts payable and accrued liabilities for purchases of property and equipment | (178 | ) | (13 | ) | ||||
Issuance of short-term debt for financing of property and equipment purchases | 443 | 45 | ||||||
Assets acquired under capital lease obligations | 3 | 3 | ||||||
Guarantor_Financial_Informatio1
Guarantor Financial Information (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of Condensed Consolidating Balance Sheet Information | Condensed Consolidating Balance Sheet Information | |||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||
(in millions) | Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating and Eliminating Adjustments | Consolidated | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 393 | $ | 1,152 | $ | 1,352 | $ | 135 | $ | — | $ | 3,032 | ||||||||||||
Accounts receivable, net | — | — | 1,885 | 48 | — | 1,933 | ||||||||||||||||||
Equipment installment plan receivables, net | — | — | 3,259 | — | — | 3,259 | ||||||||||||||||||
Accounts receivable from affiliates | — | — | 85 | — | — | 85 | ||||||||||||||||||
Inventories | — | — | 1,230 | — | — | 1,230 | ||||||||||||||||||
Deferred tax assets, net | — | — | 1,033 | — | — | 1,033 | ||||||||||||||||||
Other current assets | — | — | 834 | 229 | — | 1,063 | ||||||||||||||||||
Total current assets | 393 | 1,152 | 9,678 | 412 | — | 11,635 | ||||||||||||||||||
Property and equipment, net (1) | — | — | 15,967 | 516 | — | 16,483 | ||||||||||||||||||
Goodwill | — | — | 1,683 | — | — | 1,683 | ||||||||||||||||||
Spectrum licenses | — | — | 24,062 | — | — | 24,062 | ||||||||||||||||||
Other intangible assets, net | — | — | 805 | — | — | 805 | ||||||||||||||||||
Investments in subsidiaries, net | 15,325 | 30,565 | — | — | (45,890 | ) | — | |||||||||||||||||
Intercompany receivables | — | 5,891 | — | — | (5,891 | ) | — | |||||||||||||||||
Equipment installment plan receivables due after one year, net | — | — | 1,583 | — | — | 1,583 | ||||||||||||||||||
Other assets | 2 | 20 | 275 | 137 | (127 | ) | 307 | |||||||||||||||||
Total assets | $ | 15,720 | $ | 37,628 | $ | 54,053 | $ | 1,065 | $ | (51,908 | ) | $ | 56,558 | |||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | — | $ | 246 | $ | 6,453 | $ | 94 | $ | — | $ | 6,793 | ||||||||||||
Current payables to affiliates | — | 136 | 80 | — | — | 216 | ||||||||||||||||||
Short-term debt | — | 443 | 24 | — | — | 467 | ||||||||||||||||||
Deferred revenue | — | — | 584 | — | — | 584 | ||||||||||||||||||
Other current liabilities | — | — | 524 | 65 | — | 589 | ||||||||||||||||||
Total current liabilities | — | 825 | 7,665 | 159 | — | 8,649 | ||||||||||||||||||
Long-term debt | — | 15,878 | 383 | — | — | 16,261 | ||||||||||||||||||
Long-term debt to affiliates | — | 5,600 | — | — | — | 5,600 | ||||||||||||||||||
Long-term financial obligation (1) | — | — | 271 | 2,252 | — | 2,523 | ||||||||||||||||||
Deferred tax liabilities | — | — | 4,982 | — | (127 | ) | 4,855 | |||||||||||||||||
Deferred rents | — | — | 2,366 | — | — | 2,366 | ||||||||||||||||||
Negative carrying value of subsidiaries, net | — | — | 789 | — | (789 | ) | — | |||||||||||||||||
Intercompany payables | 70 | — | 5,713 | 108 | (5,891 | ) | — | |||||||||||||||||
Other long-term liabilities | — | — | 654 | — | — | 654 | ||||||||||||||||||
Total long-term liabilities | 70 | 21,478 | 15,158 | 2,360 | (6,807 | ) | 32,259 | |||||||||||||||||
Total stockholders' equity | 15,650 | 15,325 | 31,230 | (1,454 | ) | (45,101 | ) | 15,650 | ||||||||||||||||
Total liabilities and stockholders' equity | $ | 15,720 | $ | 37,628 | $ | 54,053 | $ | 1,065 | $ | (51,908 | ) | $ | 56,558 | |||||||||||
-1 | Assets and liabilities for Non-Guarantor Subsidiaries are primarily included in VIEs related to the Tower Transaction. See Note 9 – Tower Transaction and Related Long-Term Financial Obligation included in the Annual Report on Form 10-K for the year ended December 31, 2014. | |||||||||||||||||||||||
Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
(in millions) | Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating and Eliminating Adjustments | Consolidated | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,278 | $ | 2,246 | $ | 697 | $ | 94 | $ | — | $ | 5,315 | ||||||||||||
Accounts receivable, net | — | — | 1,817 | 48 | — | 1,865 | ||||||||||||||||||
Equipment installment plan receivables, net | — | — | 3,062 | — | — | 3,062 | ||||||||||||||||||
Accounts receivable from affiliates | — | — | 76 | — | — | 76 | ||||||||||||||||||
Inventories | — | — | 1,085 | — | — | 1,085 | ||||||||||||||||||
Deferred tax assets, net | — | — | 988 | — | — | 988 | ||||||||||||||||||
Other current assets | — | 3 | 1,341 | 249 | — | 1,593 | ||||||||||||||||||
Total current assets | 2,278 | 2,249 | 9,066 | 391 | — | 13,984 | ||||||||||||||||||
Property and equipment, net (1) | — | — | 15,708 | 537 | — | 16,245 | ||||||||||||||||||
Goodwill | — | — | 1,683 | — | — | 1,683 | ||||||||||||||||||
Spectrum licenses | — | — | 21,955 | — | — | 21,955 | ||||||||||||||||||
Other intangible assets, net | — | — | 870 | — | — | 870 | ||||||||||||||||||
Investments in subsidiaries, net | 13,470 | 30,385 | — | — | (43,855 | ) | — | |||||||||||||||||
Intercompany receivables | — | 2,773 | — | — | (2,773 | ) | — | |||||||||||||||||
Equipment installment plan receivables due after one year, net | — | — | 1,628 | — | — | 1,628 | ||||||||||||||||||
Other assets | 2 | 17 | 259 | 124 | (114 | ) | 288 | |||||||||||||||||
Total assets | $ | 15,750 | $ | 35,424 | $ | 51,169 | $ | 1,052 | $ | (46,742 | ) | $ | 56,653 | |||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | — | $ | 349 | $ | 6,914 | $ | 101 | $ | — | $ | 7,364 | ||||||||||||
Current payables to affiliates | — | 56 | 175 | — | — | 231 | ||||||||||||||||||
Short-term debt | — | 63 | 24 | — | — | 87 | ||||||||||||||||||
Deferred revenue | — | — | 459 | — | — | 459 | ||||||||||||||||||
Other current liabilities | — | — | 580 | 55 | — | 635 | ||||||||||||||||||
Total current liabilities | — | 468 | 8,152 | 156 | — | 8,776 | ||||||||||||||||||
Long-term debt | — | 15,886 | 387 | — | — | 16,273 | ||||||||||||||||||
Long-term debt to affiliates | — | 5,600 | — | — | — | 5,600 | ||||||||||||||||||
Long-term financial obligation (1) | — | — | 271 | 2,250 | — | 2,521 | ||||||||||||||||||
Deferred tax liabilities | — | — | 4,987 | — | (114 | ) | 4,873 | |||||||||||||||||
Deferred rents | — | — | 2,331 | — | — | 2,331 | ||||||||||||||||||
Negative carrying value of subsidiaries, net | — | — | 780 | — | (780 | ) | — | |||||||||||||||||
Intercompany payables | 87 | — | 2,589 | 97 | (2,773 | ) | — | |||||||||||||||||
Other long-term liabilities | — | — | 616 | — | — | 616 | ||||||||||||||||||
Total long-term liabilities | 87 | 21,486 | 11,961 | 2,347 | (3,667 | ) | 32,214 | |||||||||||||||||
Total stockholders' equity | 15,663 | 13,470 | 31,056 | (1,451 | ) | (43,075 | ) | 15,663 | ||||||||||||||||
Total liabilities and stockholders' equity | $ | 15,750 | $ | 35,424 | $ | 51,169 | $ | 1,052 | $ | (46,742 | ) | $ | 56,653 | |||||||||||
-1 | Assets and liabilities for Non-Guarantor Subsidiaries are primarily included in VIEs related to the Tower Transaction. See Note 9 – Tower Transaction and Related Long-Term Financial Obligation included in the Annual Report on Form 10-K for the year ended December 31, 2014. | |||||||||||||||||||||||
Schedule of Condensed Consolidating Statement of Comprehensive Income (Loss) Information | Condensed Consolidating Statement of Comprehensive Income (Loss) Information | |||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
(in millions) | Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating and Eliminating Adjustments | Consolidated | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Service revenues | $ | — | $ | — | $ | 5,562 | $ | 389 | $ | (132 | ) | $ | 5,819 | |||||||||||
Equipment sales | — | — | 1,927 | — | (76 | ) | 1,851 | |||||||||||||||||
Other revenues | — | — | 69 | 42 | (3 | ) | 108 | |||||||||||||||||
Total revenues | — | — | 7,558 | 431 | (211 | ) | 7,778 | |||||||||||||||||
Operating expenses | ||||||||||||||||||||||||
Cost of services, exclusive of depreciation and amortization shown separately below | — | — | 1,389 | 6 | — | 1,395 | ||||||||||||||||||
Cost of equipment sales | — | — | 2,605 | 150 | (76 | ) | 2,679 | |||||||||||||||||
Selling, general and administrative | — | — | 2,340 | 167 | (135 | ) | 2,372 | |||||||||||||||||
Depreciation and amortization | — | — | 1,065 | 22 | — | 1,087 | ||||||||||||||||||
Cost of MetroPCS business combination | — | — | 128 | — | — | 128 | ||||||||||||||||||
Total operating expenses | — | — | 7,527 | 345 | (211 | ) | 7,661 | |||||||||||||||||
Operating income | — | — | 31 | 86 | — | 117 | ||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||
Interest expense to affiliates | — | (64 | ) | — | — | — | (64 | ) | ||||||||||||||||
Interest expense | — | (200 | ) | (14 | ) | (47 | ) | — | (261 | ) | ||||||||||||||
Interest income | — | — | 112 | — | — | 112 | ||||||||||||||||||
Other income (expense), net | — | 32 | — | — | (40 | ) | (8 | ) | ||||||||||||||||
Total other income (expense), net | — | (232 | ) | 98 | (47 | ) | (40 | ) | (221 | ) | ||||||||||||||
Income (loss) before income taxes | — | (232 | ) | 129 | 39 | (40 | ) | (104 | ) | |||||||||||||||
Income tax expense (benefit) | — | — | (48 | ) | 7 | — | (41 | ) | ||||||||||||||||
Earnings (loss) of subsidiaries | (63 | ) | 169 | (12 | ) | — | (94 | ) | — | |||||||||||||||
Net income (loss) | (63 | ) | (63 | ) | 165 | 32 | (134 | ) | (63 | ) | ||||||||||||||
Dividends on preferred stock | (14 | ) | — | — | — | — | (14 | ) | ||||||||||||||||
Net income (loss) attributable to common stockholders | (77 | ) | (63 | ) | 165 | 32 | (134 | ) | (77 | ) | ||||||||||||||
Other comprehensive (loss), net of tax | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | ||||||||||||||||||
Total comprehensive income (loss) | $ | (63 | ) | $ | (63 | ) | $ | 165 | $ | 32 | $ | (134 | ) | $ | (63 | ) | ||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) Information | ||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
(in millions) | Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating and Eliminating Adjustments | Consolidated | ||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Service revenues | $ | — | $ | — | $ | 5,150 | $ | 265 | $ | (78 | ) | $ | 5,337 | |||||||||||
Equipment sales | — | — | 1,597 | — | (149 | ) | 1,448 | |||||||||||||||||
Other revenues | — | — | 58 | 34 | (2 | ) | 90 | |||||||||||||||||
Total revenues | — | — | 6,805 | 299 | (229 | ) | 6,875 | |||||||||||||||||
Operating expenses | ||||||||||||||||||||||||
Cost of services, exclusive of depreciation and amortization shown separately below | — | — | 1,460 | 4 | — | 1,464 | ||||||||||||||||||
Cost of equipment sales | — | — | 2,313 | 138 | (165 | ) | 2,286 | |||||||||||||||||
Selling, general and administrative | — | — | 2,060 | 100 | (64 | ) | 2,096 | |||||||||||||||||
Depreciation and amortization | — | — | 1,035 | 20 | — | 1,055 | ||||||||||||||||||
Cost of MetroPCS business combination | — | — | 12 | — | — | 12 | ||||||||||||||||||
Gain on disposal of spectrum licenses | — | — | (10 | ) | — | — | (10 | ) | ||||||||||||||||
Total operating expenses | — | — | 6,870 | 262 | (229 | ) | 6,903 | |||||||||||||||||
Operating income (loss) | — | — | (65 | ) | 37 | — | (28 | ) | ||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||
Interest expense to affiliates | — | (18 | ) | — | — | — | (18 | ) | ||||||||||||||||
Interest expense | — | (214 | ) | (18 | ) | (44 | ) | — | (276 | ) | ||||||||||||||
Interest income | — | — | 75 | — | — | 75 | ||||||||||||||||||
Other income (expense), net | — | (8 | ) | 2 | — | — | (6 | ) | ||||||||||||||||
Total other income (expense), net | — | (240 | ) | 59 | (44 | ) | — | (225 | ) | |||||||||||||||
Loss before income taxes | — | (240 | ) | (6 | ) | (7 | ) | — | (253 | ) | ||||||||||||||
Income tax benefit | — | — | (100 | ) | (2 | ) | — | (102 | ) | |||||||||||||||
Earnings (loss) of subsidiaries | (151 | ) | 89 | (15 | ) | — | 77 | — | ||||||||||||||||
Net income (loss) | (151 | ) | (151 | ) | 79 | (5 | ) | 77 | (151 | ) | ||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||
Other comprehensive loss, net of tax | (3 | ) | (3 | ) | (3 | ) | — | 6 | (3 | ) | ||||||||||||||
Total comprehensive income (loss) | $ | (154 | ) | $ | (154 | ) | $ | 76 | $ | (5 | ) | $ | 83 | $ | (154 | ) | ||||||||
Schedule of Condensed Consolidating Statement of Cash Flows Information | Condensed Consolidating Statement of Cash Flows Information | |||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
(in millions) | Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating and Eliminating Adjustments | Consolidated | ||||||||||||||||||
Operating activities | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 20 | $ | (2,999 | ) | $ | 3,427 | $ | 81 | $ | (40 | ) | $ | 489 | ||||||||||
Investing activities | ||||||||||||||||||||||||
Purchases of property and equipment | — | — | (982 | ) | — | — | (982 | ) | ||||||||||||||||
Purchases of spectrum licenses and other intangible assets | — | — | (1,696 | ) | — | — | (1,696 | ) | ||||||||||||||||
Investment in subsidiaries | (1,905 | ) | — | — | — | 1,905 | — | |||||||||||||||||
Other, net | — | — | (14 | ) | — | — | (14 | ) | ||||||||||||||||
Net cash used in investing activities | (1,905 | ) | — | (2,692 | ) | — | 1,905 | (2,692 | ) | |||||||||||||||
Financing activities | ||||||||||||||||||||||||
Proceeds from capital contribution | — | 1,905 | — | — | (1,905 | ) | — | |||||||||||||||||
Repayments of short-term debt for purchases of inventory, property and equipment, net | — | — | (63 | ) | — | — | (63 | ) | ||||||||||||||||
Intercompany dividend paid | — | — | — | (40 | ) | 40 | — | |||||||||||||||||
Other, net | — | — | (17 | ) | — | — | (17 | ) | ||||||||||||||||
Net cash provided by (used in) financing activities | — | 1,905 | (80 | ) | (40 | ) | (1,865 | ) | (80 | ) | ||||||||||||||
Change in cash and cash equivalents | (1,885 | ) | (1,094 | ) | 655 | 41 | — | (2,283 | ) | |||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||
Beginning of period | 2,278 | 2,246 | 697 | 94 | — | 5,315 | ||||||||||||||||||
End of period | $ | 393 | $ | 1,152 | $ | 1,352 | $ | 135 | $ | — | $ | 3,032 | ||||||||||||
Condensed Consolidating Statement of Cash Flows Information | ||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
(in millions) | Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating and Eliminating Adjustments | Consolidated | ||||||||||||||||||
Operating activities | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 5 | $ | (466 | ) | $ | 1,199 | $ | 21 | $ | — | $ | 759 | |||||||||||
Investing activities | ||||||||||||||||||||||||
Purchases of property and equipment | — | — | (947 | ) | — | — | (947 | ) | ||||||||||||||||
Other, net | — | — | (18 | ) | — | — | (18 | ) | ||||||||||||||||
Net cash used in investing activities | — | — | (965 | ) | — | — | (965 | ) | ||||||||||||||||
Financing activities | ||||||||||||||||||||||||
Repayments of short-term debt for purchases of property and equipment | — | — | (226 | ) | — | — | (226 | ) | ||||||||||||||||
Other, net | 14 | — | (2 | ) | — | — | 12 | |||||||||||||||||
Net cash provided by (used in) financing activities | 14 | — | (228 | ) | — | — | (214 | ) | ||||||||||||||||
Change in cash and cash equivalents | 19 | (466 | ) | 6 | 21 | — | (420 | ) | ||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||
Beginning of period | 2,960 | 2,698 | 57 | 176 | — | 5,891 | ||||||||||||||||||
End of period | $ | 2,979 | $ | 2,232 | $ | 63 | $ | 197 | $ | — | $ | 5,471 | ||||||||||||
Significant_Transactions_Detai
Significant Transactions (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Purchases of spectrum licenses and other intangible assets | $1,696,000,000 | $0 |
FCC Spectrum Auction [Member] | ||
Aggregate bid price of spectrum licenses | 1,800,000,000 | |
Purchases of spectrum licenses and other intangible assets | 1,400,000,000 | |
Deposit provided to FCC | $400,000,000 |
Equipment_Installment_Plan_Rec2
Equipment Installment Plan Receivables (EIP Receivables) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Equipment installment plan, maximum payment term | 24 months | |
Equipment Installment Plan Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, gross | 5,275 | $5,138 |
Unamortized imputed interest | -327 | -332 |
Equipment installment plan receivables, net of unamortized imputed interest | 4,948 | 4,806 |
Allowance for credit losses | -106 | -116 |
Equipment installment plan receivables, net | 4,842 | 4,690 |
Equipment Installment Plan Receivables, Net [Member] | Equipment Installment Plan Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment installment plan receivables, net | 3,259 | 3,062 |
Equipment Installment Plan Receivables Due After One Year, Net [Member] | Equipment Installment Plan Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unamortized imputed interest | -57 | -61 |
Equipment installment plan receivables, net | 1,583 | $1,628 |
Equipment_Installment_Plan_Rec3
Equipment Installment Plan Receivables (Gross Receivables by Credit Category) (Details) (Equipment Installment Plan Receivables [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables, gross | $5,275 | $5,138 |
Unbilled Revenues [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables | 4,982 | 4,852 |
Billed Revenues [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables | 207 | 199 |
Equipment installment plan receivables, past due | 86 | 87 |
Prime [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables, gross | 2,765 | 2,778 |
Prime [Member] | Unbilled Revenues [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables | 2,623 | 2,639 |
Prime [Member] | Billed Revenues [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables | 107 | 104 |
Equipment installment plan receivables, past due | 35 | 35 |
Subprime [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables, gross | 2,510 | 2,360 |
Subprime [Member] | Unbilled Revenues [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables | 2,359 | 2,213 |
Subprime [Member] | Billed Revenues [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Equipment installment plan receivables | 100 | 95 |
Equipment installment plan receivables, past due | $51 | $52 |
Equipment_Installment_Plan_Rec4
Equipment Installment Plan Receivables (Unamortized Imputed Discount and Allowance for Credit Losses) (Details) (Equipment Installment Plan Receivables [Member], USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unamortized imputed interest | $327 | $332 |
Weighted average effective imputed interest rate | 9.50% | 9.70% |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Imputed discount and allowance for credit losses, beginning of period | 448 | |
Bad debt expense | 77 | |
Write-offs, net of recoveries | -87 | |
Change in imputed discount on short-term and long-term EIP receivables | -5 | |
Imputed discount and allowance for credit losses, end of period | 433 | 448 |
Equipment Installment Plan Receivables Due After One Year, Net [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unamortized imputed interest | $57 | $61 |
Factoring_Arrangement_Details
Factoring Arrangement (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Other current liabilities | $589 | $635 | |
Factoring Arrangement [Member] | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Maximum funding limit | 640 | ||
Derecognized net receivables | 677 | 768 | |
Net cash proceeds since inception | 492 | 610 | |
Other current assets | 204 | 204 | |
Accounts payable and accrued liabilities | 0 | 13 | |
Other current liabilities | 65 | 55 | |
Net expenses | 65 | 27 | |
Maximum exposure to loss, Factoring VIE | $457 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value of Long-term Debt) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Inputs, Level 1 [Member] | Carrying Amount [Member] | ||
Long Term Debt, Fair Value [Line Items] | ||
Long-term debt | $15,600 | $15,600 |
Fair Value, Inputs, Level 1 [Member] | Fair Value [Member] | ||
Long Term Debt, Fair Value [Line Items] | ||
Long-term debt | 16,329 | 16,034 |
Fair Value, Inputs, Level 2 [Member] | Carrying Amount [Member] | Deutsche Telekom [Member] | ||
Long Term Debt, Fair Value [Line Items] | ||
Long-term debt | 5,600 | 5,600 |
Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | Deutsche Telekom [Member] | ||
Long Term Debt, Fair Value [Line Items] | ||
Long-term debt | $5,963 | $5,780 |
Loss_Per_Share_Details
Loss Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net loss | ($63) | ($151) |
Dividends on preferred stock | -14 | 0 |
Net loss attributable to common stockholders | ($77) | ($151) |
Weighted average shares outstanding - basic | 808,605,526 | 802,520,723 |
Dilutive effect of outstanding stock options and unvested stock awards | 0 | 0 |
Weighted average shares outstanding - diluted | 808,605,526 | 802,520,723 |
Loss per share - basic | ($0.09) | ($0.19) |
Loss per share - diluted | ($0.09) | ($0.19) |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive outstanding securities | 3,000,000 | 5,000,000 |
Unvested Stock Awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive outstanding securities | 23,000,000 | 24,000,000 |
Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive outstanding securities | 32,000,000 | 0 |
Commitments_and_Contingencies_
Commitments and Contingencies (Guarantee Liabilities) (Details) (Handset Financing Arrangement [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Handset Financing Arrangement [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee liabilities | $266,000,000 | $286,000,000 |
Guarantee liabilities, maximum exposure to loss | $2,800,000,000 |
Additional_Financial_Informati2
Additional Financial Information (Network Decommissioning Costs) (Details) (MetroPCS Network Decomissioning Costs [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Restructuring Cost and Reserve [Line Items] | |
Network decommissioning costs, including effects of deferred items | $128 |
Balances, beginning of period | 239 |
Network decommissioning costs, excluding effects of deferred items | 136 |
Cash payments | -33 |
Balances, end of period | 342 |
Asset retirement obligation, liabilities settled | 37 |
Accounts Payable and Accrued Liabilities [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balances, end of period | 105 |
Other Long-Term Liabilities [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Balances, end of period | 237 |
Minimum [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Network decommissioning costs, expected | 375 |
Maximum [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Network decommissioning costs, expected | $475 |
Additional_Financial_Informati3
Additional Financial Information (Supplemental Statements of Cash Flows Information) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Additional Financial Information [Abstract] | ||
Interest payments, net of amounts capitalized | $327 | $286 |
Income tax payments | 2 | 0 |
Decrease in accounts payable and accrued liabilities for purchases of property and equipment | -178 | -13 |
Issuance of short-term debt for financing of property and equipment purchases | 443 | 45 |
Assets acquired under capital lease obligations | $3 | $3 |
Guarantor_Financial_Informatio2
Guarantor Financial Information (Condensed Consolidating Balance Sheet Information) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||||
Current assets | ||||||
Cash and cash equivalents | $3,032 | $5,315 | $5,471 | $5,891 | ||
Accounts receivable, net | 1,933 | 1,865 | ||||
Equipment installment plan receivables, net | 3,259 | 3,062 | ||||
Accounts receivable from affiliates | 85 | 76 | ||||
Inventories | 1,230 | 1,085 | ||||
Deferred tax assets, net | 1,033 | 988 | ||||
Other current assets | 1,063 | 1,593 | ||||
Total current assets | 11,635 | 13,984 | ||||
Property and equipment, net | 16,483 | 16,245 | ||||
Goodwill | 1,683 | 1,683 | ||||
Spectrum licenses | 24,062 | 21,955 | ||||
Other intangible assets, net | 805 | 870 | ||||
Investments in subsidiaries, net | 0 | 0 | ||||
Intercompany receivables | 0 | 0 | ||||
Equipment installment plan receivables due after one year, net | 1,583 | 1,628 | ||||
Other assets | 307 | 288 | ||||
Total assets | 56,558 | 56,653 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 6,793 | 7,364 | ||||
Current payables to affiliates | 216 | 231 | ||||
Short-term debt | 467 | 87 | ||||
Deferred revenue | 584 | 459 | ||||
Other current liabilities | 589 | 635 | ||||
Total current liabilities | 8,649 | 8,776 | ||||
Long-term debt | 16,261 | 16,273 | ||||
Long-term debt to affiliates | 5,600 | 5,600 | ||||
Long-term financial obligation | 2,523 | 2,521 | ||||
Deferred tax liabilities | 4,855 | 4,873 | ||||
Deferred rents | 2,366 | 2,331 | ||||
Negative carrying value of subsidiaries, net | 0 | 0 | ||||
Intercompany payables | 0 | 0 | ||||
Other long-term liabilities | 654 | 616 | ||||
Total long-term liabilities | 32,259 | 32,214 | ||||
Total stockholders' equity | 15,650 | 15,663 | ||||
Total liabilities and stockholders' equity | 56,558 | 56,653 | ||||
Consolidating and Eliminating Adjustments [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||||
Equipment installment plan receivables, net | 0 | 0 | ||||
Accounts receivable from affiliates | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Deferred tax assets, net | 0 | 0 | ||||
Other current assets | 0 | 0 | ||||
Total current assets | 0 | 0 | ||||
Property and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Spectrum licenses | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Investments in subsidiaries, net | -45,890 | -43,855 | ||||
Intercompany receivables | -5,891 | -2,773 | ||||
Equipment installment plan receivables due after one year, net | 0 | 0 | ||||
Other assets | -127 | -114 | ||||
Total assets | -51,908 | -46,742 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 0 | 0 | ||||
Current payables to affiliates | 0 | 0 | ||||
Short-term debt | 0 | 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 | ||||
Long-term financial obligation | 0 | 0 | ||||
Deferred tax liabilities | -127 | -114 | ||||
Deferred rents | 0 | 0 | ||||
Negative carrying value of subsidiaries, net | -789 | -780 | ||||
Intercompany payables | -5,891 | -2,773 | ||||
Other long-term liabilities | 0 | 0 | ||||
Total long-term liabilities | -6,807 | -3,667 | ||||
Total stockholders' equity | -45,101 | -43,075 | ||||
Total liabilities and stockholders' equity | -51,908 | -46,742 | ||||
Parent [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 393 | 2,278 | 2,979 | 2,960 | ||
Accounts receivable, net | 0 | 0 | ||||
Equipment installment plan receivables, net | 0 | 0 | ||||
Accounts receivable from affiliates | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Deferred tax assets, net | 0 | 0 | ||||
Other current assets | 0 | 0 | ||||
Total current assets | 393 | 2,278 | ||||
Property and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Spectrum licenses | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Investments in subsidiaries, net | 15,325 | 13,470 | ||||
Intercompany receivables | 0 | 0 | ||||
Equipment installment plan receivables due after one year, net | 0 | 0 | ||||
Other assets | 2 | 2 | ||||
Total assets | 15,720 | 15,750 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 0 | 0 | ||||
Current payables to affiliates | 0 | 0 | ||||
Short-term debt | 0 | 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 | ||||
Long-term financial obligation | 0 | 0 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Deferred rents | 0 | 0 | ||||
Negative carrying value of subsidiaries, net | 0 | 0 | ||||
Intercompany payables | 70 | 87 | ||||
Other long-term liabilities | 0 | 0 | ||||
Total long-term liabilities | 70 | 87 | ||||
Total stockholders' equity | 15,650 | 15,663 | ||||
Total liabilities and stockholders' equity | 15,720 | 15,750 | ||||
Issuer [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 1,152 | 2,246 | 2,232 | 2,698 | ||
Accounts receivable, net | 0 | 0 | ||||
Equipment installment plan receivables, net | 0 | 0 | ||||
Accounts receivable from affiliates | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Deferred tax assets, net | 0 | 0 | ||||
Other current assets | 0 | 3 | ||||
Total current assets | 1,152 | 2,249 | ||||
Property and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Spectrum licenses | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Investments in subsidiaries, net | 30,565 | 30,385 | ||||
Intercompany receivables | 5,891 | 2,773 | ||||
Equipment installment plan receivables due after one year, net | 0 | 0 | ||||
Other assets | 20 | 17 | ||||
Total assets | 37,628 | 35,424 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 246 | 349 | ||||
Current payables to affiliates | 136 | 56 | ||||
Short-term debt | 443 | 63 | ||||
Deferred revenue | 0 | 0 | ||||
Other current liabilities | 0 | 0 | ||||
Total current liabilities | 825 | 468 | ||||
Long-term debt | 15,878 | 15,886 | ||||
Long-term debt to affiliates | 5,600 | 5,600 | ||||
Long-term financial obligation | 0 | 0 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Deferred rents | 0 | 0 | ||||
Negative carrying value of subsidiaries, net | 0 | 0 | ||||
Intercompany payables | 0 | 0 | ||||
Other long-term liabilities | 0 | 0 | ||||
Total long-term liabilities | 21,478 | 21,486 | ||||
Total stockholders' equity | 15,325 | 13,470 | ||||
Total liabilities and stockholders' equity | 37,628 | 35,424 | ||||
Guarantor Subsidiaries [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 1,352 | 697 | 63 | 57 | ||
Accounts receivable, net | 1,885 | 1,817 | ||||
Equipment installment plan receivables, net | 3,259 | 3,062 | ||||
Accounts receivable from affiliates | 85 | 76 | ||||
Inventories | 1,230 | 1,085 | ||||
Deferred tax assets, net | 1,033 | 988 | ||||
Other current assets | 834 | 1,341 | ||||
Total current assets | 9,678 | 9,066 | ||||
Property and equipment, net | 15,967 | 15,708 | ||||
Goodwill | 1,683 | 1,683 | ||||
Spectrum licenses | 24,062 | 21,955 | ||||
Other intangible assets, net | 805 | 870 | ||||
Investments in subsidiaries, net | 0 | 0 | ||||
Intercompany receivables | 0 | 0 | ||||
Equipment installment plan receivables due after one year, net | 1,583 | 1,628 | ||||
Other assets | 275 | 259 | ||||
Total assets | 54,053 | 51,169 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 6,453 | 6,914 | ||||
Current payables to affiliates | 80 | 175 | ||||
Short-term debt | 24 | 24 | ||||
Deferred revenue | 584 | 459 | ||||
Other current liabilities | 524 | 580 | ||||
Total current liabilities | 7,665 | 8,152 | ||||
Long-term debt | 383 | 387 | ||||
Long-term debt to affiliates | 0 | 0 | ||||
Long-term financial obligation | 271 | 271 | ||||
Deferred tax liabilities | 4,982 | 4,987 | ||||
Deferred rents | 2,366 | 2,331 | ||||
Negative carrying value of subsidiaries, net | 789 | 780 | ||||
Intercompany payables | 5,713 | 2,589 | ||||
Other long-term liabilities | 654 | 616 | ||||
Total long-term liabilities | 15,158 | 11,961 | ||||
Total stockholders' equity | 31,230 | 31,056 | ||||
Total liabilities and stockholders' equity | 54,053 | 51,169 | ||||
Non-Guarantor Subsidiaries [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 135 | 94 | 197 | 176 | ||
Accounts receivable, net | 48 | 48 | ||||
Equipment installment plan receivables, net | 0 | 0 | ||||
Accounts receivable from affiliates | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Deferred tax assets, net | 0 | 0 | ||||
Other current assets | 229 | 249 | ||||
Total current assets | 412 | 391 | ||||
Property and equipment, net | 516 | [1] | 537 | [1] | ||
Goodwill | 0 | 0 | ||||
Spectrum licenses | 0 | 0 | ||||
Other intangible assets, net | 0 | 0 | ||||
Investments in subsidiaries, net | 0 | 0 | ||||
Intercompany receivables | 0 | 0 | ||||
Equipment installment plan receivables due after one year, net | 0 | 0 | ||||
Other assets | 137 | 124 | ||||
Total assets | 1,065 | 1,052 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 94 | 101 | ||||
Current payables to affiliates | 0 | 0 | ||||
Short-term debt | 0 | 0 | ||||
Deferred revenue | 0 | 0 | ||||
Other current liabilities | 65 | 55 | ||||
Total current liabilities | 159 | 156 | ||||
Long-term debt | 0 | 0 | ||||
Long-term debt to affiliates | 0 | 0 | ||||
Long-term financial obligation | 2,252 | [1] | 2,250 | [1] | ||
Deferred tax liabilities | 0 | 0 | ||||
Deferred rents | 0 | 0 | ||||
Negative carrying value of subsidiaries, net | 0 | 0 | ||||
Intercompany payables | 108 | 97 | ||||
Other long-term liabilities | 0 | 0 | ||||
Total long-term liabilities | 2,360 | 2,347 | ||||
Total stockholders' equity | -1,454 | -1,451 | ||||
Total liabilities and stockholders' equity | $1,065 | $1,052 | ||||
[1] | Assets and liabilities for Non-Guarantor Subsidiaries are primarily included in VIEs related to the Tower Transaction. See Note 9 b Tower Transaction and Related Long-Term Financial Obligation included in the Annual Report on Form 10-K for the year endedB DecemberB 31, 2014. |
Guarantor_Financial_Informatio3
Guarantor Financial Information (Condensed Consolidating Statement of Comprehensive Income (Loss) Information) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Service revenues | $5,819 | $5,337 |
Equipment sales | 1,851 | 1,448 |
Other revenues | 108 | 90 |
Total revenues | 7,778 | 6,875 |
Operating expenses | ||
Cost of services, exclusive of depreciation and amortization shown separately below | 1,395 | 1,464 |
Cost of equipment sales | 2,679 | 2,286 |
Selling, general and administrative | 2,372 | 2,096 |
Depreciation and amortization | 1,087 | 1,055 |
Cost of MetroPCS business combination | 128 | 12 |
Gains on disposal of spectrum licenses | 0 | -10 |
Total operating expenses | 7,661 | 6,903 |
Operating income (loss) | 117 | -28 |
Other income (expense) | ||
Interest expense to affiliates | -64 | -18 |
Interest expense | -261 | -276 |
Interest income | 112 | 75 |
Other income (expense), net | -8 | -6 |
Total other expense, net | -221 | -225 |
Loss before income taxes | -104 | -253 |
Income tax benefit | -41 | -102 |
Earnings (loss) of subsidiaries | 0 | 0 |
Net loss | -63 | -151 |
Dividends on preferred stock | -14 | 0 |
Net loss attributable to common stockholders | -77 | -151 |
Other comprehensive loss, net of tax | 0 | -3 |
Total comprehensive loss | -63 | -154 |
Consolidating and Eliminating Adjustments [Member] | ||
Revenues | ||
Service revenues | -132 | -78 |
Equipment sales | -76 | -149 |
Other revenues | -3 | -2 |
Total revenues | -211 | -229 |
Operating expenses | ||
Cost of services, exclusive of depreciation and amortization shown separately below | 0 | 0 |
Cost of equipment sales | -76 | -165 |
Selling, general and administrative | -135 | -64 |
Depreciation and amortization | 0 | 0 |
Cost of MetroPCS business combination | 0 | 0 |
Gains on disposal of spectrum licenses | 0 | |
Total operating expenses | -211 | -229 |
Operating income (loss) | 0 | 0 |
Other income (expense) | ||
Interest expense to affiliates | 0 | 0 |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Other income (expense), net | -40 | 0 |
Total other expense, net | -40 | 0 |
Loss before income taxes | -40 | 0 |
Income tax benefit | 0 | 0 |
Earnings (loss) of subsidiaries | -94 | 77 |
Net loss | -134 | 77 |
Dividends on preferred stock | 0 | |
Net loss attributable to common stockholders | -134 | |
Other comprehensive loss, net of tax | 0 | 6 |
Total comprehensive loss | -134 | 83 |
Parent [Member] | ||
Revenues | ||
Service revenues | 0 | 0 |
Equipment sales | 0 | 0 |
Other revenues | 0 | 0 |
Total revenues | 0 | 0 |
Operating expenses | ||
Cost of services, exclusive of depreciation and amortization shown separately below | 0 | 0 |
Cost of equipment sales | 0 | 0 |
Selling, general and administrative | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Cost of MetroPCS business combination | 0 | 0 |
Gains on disposal of spectrum licenses | 0 | |
Total operating expenses | 0 | 0 |
Operating income (loss) | 0 | 0 |
Other income (expense) | ||
Interest expense to affiliates | 0 | 0 |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Other income (expense), net | 0 | 0 |
Total other expense, net | 0 | 0 |
Loss before income taxes | 0 | 0 |
Income tax benefit | 0 | 0 |
Earnings (loss) of subsidiaries | -63 | -151 |
Net loss | -63 | -151 |
Dividends on preferred stock | -14 | |
Net loss attributable to common stockholders | -77 | |
Other comprehensive loss, net of tax | 0 | -3 |
Total comprehensive loss | -63 | -154 |
Issuer [Member] | ||
Revenues | ||
Service revenues | 0 | 0 |
Equipment sales | 0 | 0 |
Other revenues | 0 | 0 |
Total revenues | 0 | 0 |
Operating expenses | ||
Cost of services, exclusive of depreciation and amortization shown separately below | 0 | 0 |
Cost of equipment sales | 0 | 0 |
Selling, general and administrative | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Cost of MetroPCS business combination | 0 | 0 |
Gains on disposal of spectrum licenses | 0 | |
Total operating expenses | 0 | 0 |
Operating income (loss) | 0 | 0 |
Other income (expense) | ||
Interest expense to affiliates | -64 | -18 |
Interest expense | -200 | -214 |
Interest income | 0 | 0 |
Other income (expense), net | 32 | -8 |
Total other expense, net | -232 | -240 |
Loss before income taxes | -232 | -240 |
Income tax benefit | 0 | 0 |
Earnings (loss) of subsidiaries | 169 | 89 |
Net loss | -63 | -151 |
Dividends on preferred stock | 0 | |
Net loss attributable to common stockholders | -63 | |
Other comprehensive loss, net of tax | 0 | -3 |
Total comprehensive loss | -63 | -154 |
Guarantor Subsidiaries [Member] | ||
Revenues | ||
Service revenues | 5,562 | 5,150 |
Equipment sales | 1,927 | 1,597 |
Other revenues | 69 | 58 |
Total revenues | 7,558 | 6,805 |
Operating expenses | ||
Cost of services, exclusive of depreciation and amortization shown separately below | 1,389 | 1,460 |
Cost of equipment sales | 2,605 | 2,313 |
Selling, general and administrative | 2,340 | 2,060 |
Depreciation and amortization | 1,065 | 1,035 |
Cost of MetroPCS business combination | 128 | 12 |
Gains on disposal of spectrum licenses | -10 | |
Total operating expenses | 7,527 | 6,870 |
Operating income (loss) | 31 | -65 |
Other income (expense) | ||
Interest expense to affiliates | 0 | 0 |
Interest expense | -14 | -18 |
Interest income | 112 | 75 |
Other income (expense), net | 0 | 2 |
Total other expense, net | 98 | 59 |
Loss before income taxes | 129 | -6 |
Income tax benefit | -48 | -100 |
Earnings (loss) of subsidiaries | -12 | -15 |
Net loss | 165 | 79 |
Dividends on preferred stock | 0 | |
Net loss attributable to common stockholders | 165 | |
Other comprehensive loss, net of tax | 0 | -3 |
Total comprehensive loss | 165 | 76 |
Non-Guarantor Subsidiaries [Member] | ||
Revenues | ||
Service revenues | 389 | 265 |
Equipment sales | 0 | 0 |
Other revenues | 42 | 34 |
Total revenues | 431 | 299 |
Operating expenses | ||
Cost of services, exclusive of depreciation and amortization shown separately below | 6 | 4 |
Cost of equipment sales | 150 | 138 |
Selling, general and administrative | 167 | 100 |
Depreciation and amortization | 22 | 20 |
Cost of MetroPCS business combination | 0 | 0 |
Gains on disposal of spectrum licenses | 0 | |
Total operating expenses | 345 | 262 |
Operating income (loss) | 86 | 37 |
Other income (expense) | ||
Interest expense to affiliates | 0 | 0 |
Interest expense | -47 | -44 |
Interest income | 0 | 0 |
Other income (expense), net | 0 | 0 |
Total other expense, net | -47 | -44 |
Loss before income taxes | 39 | -7 |
Income tax benefit | 7 | -2 |
Earnings (loss) of subsidiaries | 0 | 0 |
Net loss | 32 | -5 |
Dividends on preferred stock | 0 | |
Net loss attributable to common stockholders | 32 | |
Other comprehensive loss, net of tax | 0 | 0 |
Total comprehensive loss | $32 | ($5) |
Guarantor_Financial_Informatio4
Guarantor Financial Information (Condensed Consolidating Statement of Cash Flows Information) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net cash provided by operating activities | $489 | $759 |
Investing activities | ||
Purchases of property and equipment | -982 | -947 |
Purchases of spectrum licenses and other intangible assets | -1,696 | 0 |
Investment in subsidiaries | 0 | |
Other, net | -14 | -18 |
Net cash used in investing activities | -2,692 | -965 |
Financing activities | ||
Proceeds from capital contribution | 0 | |
Repayments of short-term debt for purchases of inventory, property and equipment, net | -63 | -226 |
Intercompany dividend paid | 0 | |
Other, net | -17 | 12 |
Net cash used in financing activities | -80 | -214 |
Change in cash and cash equivalents | -2,283 | -420 |
Beginning of period | 5,315 | 5,891 |
End of period | 3,032 | 5,471 |
Consolidating and Eliminating Adjustments [Member] | ||
Operating activities | ||
Net cash provided by operating activities | -40 | 0 |
Investing activities | ||
Purchases of property and equipment | 0 | 0 |
Purchases of spectrum licenses and other intangible assets | 0 | |
Investment in subsidiaries | 1,905 | |
Other, net | 0 | 0 |
Net cash used in investing activities | 1,905 | 0 |
Financing activities | ||
Proceeds from capital contribution | -1,905 | |
Repayments of short-term debt for purchases of inventory, property and equipment, net | 0 | 0 |
Intercompany dividend paid | 40 | |
Other, net | 0 | 0 |
Net cash used in financing activities | -1,865 | 0 |
Change in cash and cash equivalents | 0 | 0 |
Beginning of period | 0 | 0 |
End of period | 0 | 0 |
Parent [Member] | ||
Operating activities | ||
Net cash provided by operating activities | 20 | 5 |
Investing activities | ||
Purchases of property and equipment | 0 | 0 |
Purchases of spectrum licenses and other intangible assets | 0 | |
Investment in subsidiaries | -1,905 | |
Other, net | 0 | 0 |
Net cash used in investing activities | -1,905 | 0 |
Financing activities | ||
Proceeds from capital contribution | 0 | |
Repayments of short-term debt for purchases of inventory, property and equipment, net | 0 | 0 |
Intercompany dividend paid | 0 | |
Other, net | 0 | 14 |
Net cash used in financing activities | 0 | 14 |
Change in cash and cash equivalents | -1,885 | 19 |
Beginning of period | 2,278 | 2,960 |
End of period | 393 | 2,979 |
Issuer [Member] | ||
Operating activities | ||
Net cash provided by operating activities | -2,999 | -466 |
Investing activities | ||
Purchases of property and equipment | 0 | 0 |
Purchases of spectrum licenses and other intangible assets | 0 | |
Investment in subsidiaries | 0 | |
Other, net | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Financing activities | ||
Proceeds from capital contribution | 1,905 | |
Repayments of short-term debt for purchases of inventory, property and equipment, net | 0 | 0 |
Intercompany dividend paid | 0 | |
Other, net | 0 | 0 |
Net cash used in financing activities | 1,905 | 0 |
Change in cash and cash equivalents | -1,094 | -466 |
Beginning of period | 2,246 | 2,698 |
End of period | 1,152 | 2,232 |
Guarantor Subsidiaries [Member] | ||
Operating activities | ||
Net cash provided by operating activities | 3,427 | 1,199 |
Investing activities | ||
Purchases of property and equipment | -982 | -947 |
Purchases of spectrum licenses and other intangible assets | -1,696 | |
Investment in subsidiaries | 0 | |
Other, net | -14 | -18 |
Net cash used in investing activities | -2,692 | -965 |
Financing activities | ||
Proceeds from capital contribution | 0 | |
Repayments of short-term debt for purchases of inventory, property and equipment, net | -63 | -226 |
Intercompany dividend paid | 0 | |
Other, net | -17 | -2 |
Net cash used in financing activities | -80 | -228 |
Change in cash and cash equivalents | 655 | 6 |
Beginning of period | 697 | 57 |
End of period | 1,352 | 63 |
Non-Guarantor Subsidiaries [Member] | ||
Operating activities | ||
Net cash provided by operating activities | 81 | 21 |
Investing activities | ||
Purchases of property and equipment | 0 | 0 |
Purchases of spectrum licenses and other intangible assets | 0 | |
Investment in subsidiaries | 0 | |
Other, net | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Financing activities | ||
Proceeds from capital contribution | 0 | |
Repayments of short-term debt for purchases of inventory, property and equipment, net | 0 | 0 |
Intercompany dividend paid | -40 | |
Other, net | 0 | 0 |
Net cash used in financing activities | -40 | 0 |
Change in cash and cash equivalents | 41 | 21 |
Beginning of period | 94 | 176 |
End of period | $135 | $197 |