Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-33409 | |
Entity Registrant Name | T-MOBILE US, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-0836269 | |
Entity Address, Address Line One | 12920 SE 38th Street | |
Entity Address, City or Town | Bellevue | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98006-1350 | |
City Area Code | (425) | |
Local Phone Number | 378-4000 | |
Title of 12(b) Security | Common Stock, par value $0.00001 per share | |
Trading Symbol | TMUS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 1,254,041,236 | |
Entity Central Index Key | 0001283699 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 3,151 | $ 6,631 |
Accounts receivable, net of allowance for credit losses of $177 and $146 | 4,466 | 4,194 |
Equipment installment plan receivables, net of allowance for credit losses and imputed discount of $600 and $494 | 5,129 | 4,748 |
Inventory | 2,243 | 2,567 |
Prepaid expenses | 776 | 746 |
Other current assets | 1,711 | 2,005 |
Total current assets | 17,476 | 20,891 |
Property and equipment, net | 40,245 | 39,803 |
Operating lease right-of-use assets | 30,110 | 26,959 |
Financing lease right-of-use assets | 3,588 | 3,322 |
Goodwill | 12,234 | 12,188 |
Spectrum licenses | 95,632 | 92,606 |
Other intangible assets, net | 4,140 | 4,733 |
Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount of $122 and $136 | 2,605 | 2,829 |
Other assets | 3,433 | 3,232 |
Total assets | 209,463 | 206,563 |
Current liabilities | ||
Accounts payable and accrued liabilities | 11,182 | 11,405 |
Short-term debt | 2,942 | 3,378 |
Short-term debt to affiliates | 0 | 2,245 |
Deferred revenue | 810 | 856 |
Short-term operating lease liabilities | 3,348 | 3,425 |
Short-term financing lease liabilities | 1,220 | 1,120 |
Other current liabilities | 1,120 | 1,070 |
Total current liabilities | 20,622 | 23,499 |
Long-term debt | 66,552 | 67,076 |
Long-term debt to affiliates | 1,495 | 1,494 |
Tower obligations | 4,006 | 2,806 |
Deferred tax liabilities | 10,433 | 10,216 |
Operating lease liabilities | 30,916 | 25,818 |
Financing lease liabilities | 1,597 | 1,455 |
Other long-term liabilities | 3,808 | 5,097 |
Total long-term liabilities | 118,807 | 113,962 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity | ||
Common Stock, par value $0.00001 per share, 2,000,000,000 shares authorized; 1,255,574,620 and 1,250,751,148 shares issued, 1,254,010,072 and 1,249,213,681 shares outstanding | 0 | 0 |
Additional paid-in capital | 73,552 | 73,292 |
Treasury stock, at cost, 1,564,549 and 1,537,468 shares issued | (16) | (13) |
Accumulated other comprehensive loss | (1,295) | (1,365) |
Accumulated deficit | (2,207) | (2,812) |
Total stockholders' equity | 70,034 | 69,102 |
Total liabilities and stockholders' equity | $ 209,463 | $ 206,563 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 177 | $ 146 |
Allowance for credit losses and imputed discount current | 600 | 494 |
Allowance for credit losses and imputed discount noncurrent | $ 122 | $ 136 |
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 1,255,574,620 | 1,250,751,148 |
Common stock, shares outstanding (in shares) | 1,254,010,072 | 1,249,213,681 |
Treasury stock, at cost (in shares) | 1,564,549 | 1,537,468 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | ||||
Revenues | $ 19,701 | $ 19,950 | $ 39,821 | $ 39,709 |
Operating expenses | ||||
Selling, general and administrative | 5,856 | 4,823 | 10,912 | 9,628 |
Impairment expense | 477 | 0 | 477 | 0 |
Depreciation and amortization | 3,491 | 4,077 | 7,076 | 8,366 |
Total operating expenses | 18,992 | 17,844 | 37,306 | 35,464 |
Operating income | 709 | 2,106 | 2,515 | 4,245 |
Other expense, net | ||||
Interest expense, net | (851) | (850) | (1,715) | (1,685) |
Other expense, net | (21) | (1) | (32) | (126) |
Total other expense, net | (872) | (851) | (1,747) | (1,811) |
(Loss) income before income taxes | (163) | 1,255 | 768 | 2,434 |
Income tax benefit (expense) | 55 | (277) | (163) | (523) |
Net (loss) income | (108) | 978 | 605 | 1,911 |
Other comprehensive income, net of tax | ||||
Reclassification of loss from cash flow hedges, net of tax effect of $13, $12, $26, and $24 | 37 | 34 | 74 | 68 |
Unrealized (loss) gain on foreign currency translation adjustment, net of tax effect of $(1), $0, $(1), and $0 | (3) | 1 | (4) | 3 |
Other comprehensive income | 34 | 35 | 70 | 71 |
Total comprehensive (loss) income | $ (74) | $ 1,013 | $ 675 | $ 1,982 |
(Loss) earnings per share | ||||
Basic (in USD per share) | $ (0.09) | $ 0.78 | $ 0.48 | $ 1.53 |
Diluted (in USD per share) | $ (0.09) | $ 0.78 | $ 0.48 | $ 1.52 |
Weighted-average shares outstanding | ||||
Basic (in shares) | 1,253,932,986 | 1,247,563,331 | 1,252,228,959 | 1,245,552,847 |
Diluted (in shares) | 1,253,932,986 | 1,253,718,122 | 1,256,873,827 | 1,254,264,464 |
Service | ||||
Revenues | ||||
Revenues | $ 15,316 | $ 14,492 | $ 30,444 | $ 28,684 |
Operating expenses | ||||
Cost of services and equipment sales | 4,060 | 3,491 | 7,787 | 6,875 |
Postpaid revenues | ||||
Revenues | ||||
Revenues | 11,445 | 10,492 | 22,646 | 20,795 |
Prepaid revenues | ||||
Revenues | ||||
Revenues | 2,469 | 2,427 | 4,924 | 4,778 |
Wholesale and other service revenues | ||||
Revenues | ||||
Revenues | 1,402 | 1,573 | 2,874 | 3,111 |
Equipment | ||||
Revenues | ||||
Revenues | 4,130 | 5,215 | 8,824 | 10,561 |
Operating expenses | ||||
Cost of services and equipment sales | 5,108 | 5,453 | 11,054 | 10,595 |
Other revenues | ||||
Revenues | ||||
Revenues | $ 255 | $ 243 | $ 553 | $ 464 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Cash flow hedges, tax effect | $ 13 | $ 12 | $ 26 | $ 24 |
Foreign currency translation adjustment, tax effect | $ (1) | $ 0 | $ (1) | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities | ||||
Net (loss) income | $ (108) | $ 978 | $ 605 | $ 1,911 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities | ||||
Depreciation and amortization | 3,491 | 4,077 | 7,076 | 8,366 |
Stock-based compensation expense | 154 | 134 | 295 | 272 |
Deferred income tax (benefit) expense | (76) | 226 | 109 | 437 |
Bad debt expense | 311 | 72 | 521 | 154 |
Losses (gains) from sales of receivables | 62 | (12) | 108 | (30) |
Losses on redemption of debt | 0 | 28 | 0 | 129 |
Impairment expense | 477 | 0 | 477 | 0 |
Changes in operating assets and liabilities | ||||
Accounts receivable | (1,573) | (1,839) | (2,557) | (1,743) |
Equipment installment plan receivables | (189) | (568) | (724) | (1,295) |
Inventories | 484 | 584 | 391 | 863 |
Operating lease right-of-use assets | 1,693 | 1,272 | 3,162 | 2,396 |
Other current and long-term assets | (112) | (154) | (116) | (100) |
Accounts payable and accrued liabilities | 36 | 28 | (23) | (1,356) |
Short- and long-term operating lease liabilities | (747) | (996) | (1,518) | (2,365) |
Other current and long-term liabilities | 200 | (47) | 37 | (264) |
Other, net | 106 | (4) | 211 | 65 |
Net cash provided by operating activities | 4,209 | 3,779 | 8,054 | 7,440 |
Investing activities | ||||
Purchases of property and equipment, including capitalized interest of $(13), $(57), $(28), and $(141) | (3,572) | (3,270) | (6,953) | (6,453) |
Purchases of spectrum licenses and other intangible assets, including deposits | (116) | (8) | (2,959) | (8,930) |
Proceeds from sales of tower sites | 0 | 31 | 0 | 31 |
Proceeds related to beneficial interests in securitization transactions | 1,121 | 1,137 | 2,306 | 2,028 |
Acquisition of companies, net of cash and restricted cash acquired | 0 | (1) | (52) | (30) |
Other, net | 8 | 28 | 7 | 32 |
Net cash used in investing activities | (2,559) | (2,083) | (7,651) | (13,322) |
Financing activities | ||||
Proceeds from issuance of long-term debt | 0 | 3,006 | 0 | 9,769 |
Repayments of financing lease obligations | (288) | (269) | (590) | (556) |
Repayments of short-term debt for purchases of inventory, property and equipment and other financial liabilities | 0 | (36) | 0 | (91) |
Repayments of long-term debt | (1,381) | (3,150) | (3,013) | (5,369) |
Tax withholdings on share-based awards | (43) | (76) | (215) | (294) |
Cash payments for debt prepayment or debt extinguishment costs | 0 | (6) | 0 | (71) |
Other, net | (32) | (46) | (62) | (91) |
Net cash (used in) provided by financing activities | (1,744) | (577) | (3,880) | 3,297 |
Change in cash and cash equivalents, including restricted cash | (94) | 1,119 | (3,477) | (2,585) |
Cash and cash equivalents, including restricted cash | ||||
Beginning of period | 3,320 | 6,759 | 6,703 | 10,463 |
End of period | $ 3,226 | $ 7,878 | $ 3,226 | $ 7,878 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Cash Flows [Abstract] | ||||
Capitalized interest | $ (13) | $ (57) | $ (28) | $ (141) |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Stockholders’ Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock Outstanding | Treasury Shares at Cost | Par Value and Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2020 | 1,241,805,706 | |||||
Beginning balance at Dec. 31, 2020 | $ 65,344 | $ (11) | $ 72,772 | $ (1,581) | $ (5,836) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 1,911 | 1,911 | ||||
Other comprehensive income | 71 | 71 | ||||
Stock-based compensation | 304 | 304 | ||||
Exercise of stock options (in shares) | 181,040 | |||||
Exercise of stock options | 9 | 9 | ||||
Stock issued for employee stock purchase plan (in shares) | 1,272,253 | |||||
Stock issued for employee stock purchase plan | 125 | 125 | ||||
Issuance of vested restricted stock units (in shares) | 7,025,097 | |||||
Shares withheld related to net share settlement of stock awards and stock options (in shares) | (2,345,617) | |||||
Shares withheld related to net share settlement of stock awards and stock options | (294) | (294) | ||||
Transfers with NQDC plan (in shares) | (17,943) | |||||
Transfers with NQDC plan | 0 | (3) | 3 | |||
Ending balance (in shares) at Jun. 30, 2021 | 1,247,920,536 | |||||
Ending balance at Jun. 30, 2021 | 67,470 | (14) | 72,919 | (1,510) | (3,925) | |
Beginning balance (in shares) at Mar. 31, 2021 | 1,246,773,175 | |||||
Beginning balance at Mar. 31, 2021 | 66,377 | (14) | 72,839 | (1,545) | (4,903) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 978 | 978 | ||||
Other comprehensive income | 35 | 35 | ||||
Stock-based compensation | 150 | 150 | ||||
Exercise of stock options (in shares) | 100,238 | |||||
Exercise of stock options | 6 | 6 | ||||
Issuance of vested restricted stock units (in shares) | 1,603,258 | |||||
Shares withheld related to net share settlement of stock awards and stock options (in shares) | (559,630) | |||||
Shares withheld related to net share settlement of stock awards and stock options | (76) | (76) | ||||
Transfers with NQDC plan (in shares) | 3,495 | |||||
Transfers with NQDC plan | 0 | 0 | 0 | |||
Ending balance (in shares) at Jun. 30, 2021 | 1,247,920,536 | |||||
Ending balance at Jun. 30, 2021 | $ 67,470 | (14) | 72,919 | (1,510) | (3,925) | |
Beginning balance (in shares) at Dec. 31, 2021 | 1,249,213,681 | 1,249,213,681 | ||||
Beginning balance at Dec. 31, 2021 | $ 69,102 | (13) | 73,292 | (1,365) | (2,812) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 605 | 605 | ||||
Other comprehensive income | 70 | 70 | ||||
Stock-based compensation | 325 | 325 | ||||
Exercise of stock options (in shares) | 90,203 | |||||
Exercise of stock options | 4 | 4 | ||||
Stock issued for employee stock purchase plan (in shares) | 1,276,725 | |||||
Stock issued for employee stock purchase plan | 138 | 138 | ||||
Issuance of vested restricted stock units (in shares) | 5,161,411 | |||||
Shares withheld related to net share settlement of stock awards and stock options (in shares) | (1,704,867) | |||||
Shares withheld related to net share settlement of stock awards and stock options | (215) | (215) | ||||
Remeasurement of uncertain tax positions | 5 | 5 | ||||
Transfers with NQDC plan (in shares) | (27,081) | |||||
Transfers with NQDC plan | $ 0 | (3) | 3 | |||
Ending balance (in shares) at Jun. 30, 2022 | 1,254,010,072 | 1,254,010,072 | ||||
Ending balance at Jun. 30, 2022 | $ 70,034 | (16) | 73,552 | (1,295) | (2,207) | |
Beginning balance (in shares) at Mar. 31, 2022 | 1,253,352,700 | |||||
Beginning balance at Mar. 31, 2022 | 69,976 | (16) | 73,420 | (1,329) | (2,099) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (108) | (108) | ||||
Other comprehensive income | 34 | 34 | ||||
Stock-based compensation | 168 | 168 | ||||
Exercise of stock options (in shares) | 40,556 | |||||
Exercise of stock options | 2 | 2 | ||||
Issuance of vested restricted stock units (in shares) | 950,742 | |||||
Shares withheld related to net share settlement of stock awards and stock options (in shares) | (334,561) | |||||
Shares withheld related to net share settlement of stock awards and stock options | (43) | (43) | ||||
Remeasurement of uncertain tax positions | 5 | 5 | ||||
Transfers with NQDC plan (in shares) | 635 | |||||
Transfers with NQDC plan | $ 0 | 0 | 0 | |||
Ending balance (in shares) at Jun. 30, 2022 | 1,254,010,072 | 1,254,010,072 | ||||
Ending balance at Jun. 30, 2022 | $ 70,034 | $ (16) | $ 73,552 | $ (1,295) | $ (2,207) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements of T-Mobile US, Inc. (“T-Mobile,” “we,” “our,” “us” or the “Company”) include all adjustments of a normal recurring nature necessary for the fair presentation of the results for the interim periods presented. The results for the interim periods are not necessarily indicative of those for the full year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. The condensed consolidated financial statements include the balances and results of operations of T-Mobile and our consolidated subsidiaries. We consolidate majority-owned subsidiaries over which we exercise control, as well as variable interest entities (“VIEs”) where we are deemed to be the primary beneficiary and VIEs which cannot be deconsolidated, such as those related to our obligations to pay for the management and operation of certain of our wireless communications tower sites. Intercompany transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires our management to make estimates and assumptions that affect the financial statements and accompanying notes. Estimates are based on historical experience, where applicable, and other assumptions that management believes are reasonable under the circumstances. Estimates are inherently subject to judgment and actual results could differ from those estimates. Accounting Pronouncements Adopted During the Current Year Reference Rate Reform In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” and has since modified the standard with ASU 2021-01, “Reference Rate Reform (Topic 848): Scope” (together, the “reference rate reform standard”). The reference rate reform standard provides temporary optional expedients and allows for certain exceptions to applying existing GAAP for contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued as a result of reference rate reform. The reference rate reform standard is available for adoption through December 31, 2022, and the optional expedients for contract modifications must be elected for all arrangements within a given Accounting Standards Codification (“ASC”) Topic or Industry Subtopic. As of January 1, 2022, we have elected to apply the practical expedients provided by the reference rate reform standard for all ASC Topics and Industry Subtopics related to eligible contract modifications as they occur. This election did not have a material impact on our condensed consolidated financial statements for the three and six months ended June 30, 2022, and the impact of applying the election to future eligible contract modifications that occur through December 31, 2022, is also not expected to be material . Contract Assets and Contract Liabilities Acquired in a Business Combination In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The standard amends ASC 805 such that contract assets and contract liabilities acquired in a business combination are added to the list of exceptions to the recognition and measurement principles such that they are recognized and measured in accordance with ASC 606. As of January 1, 2022, we have elected to adopt this standard, and it will be applied prospectively to all business combinations occurring after this date. Accounting Pronouncements Not Yet Adopted Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB issued ASU 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The standard eliminates the accounting guidance within ASC 310-40 for troubled debt restructurings by creditors while enhancing disclosure requirements for certain loan refinancing and restructurings by |
Receivables and Related Allowan
Receivables and Related Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Receivables and Related Allowance for Credit Losses | Note 2 – Receivables and Related Allowance for Credit Losses We maintain an allowance for credit losses by applying an expected credit loss model. Each period, management assesses the appropriateness of the level of allowance for credit losses by considering credit risk inherent within each portfolio segment as of period end. We consider a receivable past due when a customer has not paid us by the contractually specified payment due date. Account balances are written off against the allowance for credit losses if collection efforts are unsuccessful and the receivable balance is deemed uncollectible (customer default), based on factors such as customer credit ratings as well as the length of time the amounts are past due. Our portfolio of receivables is comprised of two portfolio segments: accounts receivable and equipment installment plan (“EIP”) receivables. Accounts Receivable Portfolio Segment Accounts receivable balances are predominately composed of amounts currently due from customers (e.g., for wireless services and monthly device lease payments), device insurance administrators, wholesale partners, non-consolidated affiliates, other carriers and third-party retail channels. We estimate credit losses associated with our accounts receivable portfolio segment using an expected credit loss model, which utilizes an aging schedule methodology based on historical information and adjusted for asset-specific considerations, current economic conditions and reasonable and supportable forecasts. Our approach considers a number of factors, including our overall historical credit losses, net of recoveries, and payment experience, as well as current collection trends such as write-off frequency and severity. We also consider other qualitative factors such as macro-economic conditions. We consider the need to adjust our estimate of credit losses for reasonable and supportable forecasts of future economic conditions. To do so, we monitor external forecasts of changes in real U.S. gross domestic product and forecasts of consumer credit behavior for comparable credit exposures. We also periodically evaluate other economic indicators such as unemployment rates to assess their level of correlation with our historical credit loss statistics. EIP Receivables Portfolio Segment Based upon customer credit profiles at the time of customer origination, we classify the EIP receivables segment into two customer classes of “Prime” and “Subprime.” Prime customer receivables are those with lower credit risk and Subprime customer receivables are those with higher credit risk. Customers may be required to make a down payment on their equipment purchases if their assessed credit risk exceeds established underwriting thresholds. In addition, certain customers within the Subprime category may be required to pay a deposit. To determine a customer’s credit profile and assist in determining their credit class, we use a proprietary credit scoring model that measures the credit quality of a customer using several factors, such as credit bureau information, consumer credit risk scores and service and device plan characteristics. EIP receivables had a combined weighted-average effective interest rate of 6.1% and 5.6% as of June 30, 2022, and December 31, 2021, respectively. The following table summarizes the EIP receivables, including imputed discounts and related allowance for credit losses: (in millions) June 30, December 31, EIP receivables, gross $ 8,456 $ 8,207 Unamortized imputed discount (389) (378) EIP receivables, net of unamortized imputed discount 8,067 7,829 Allowance for credit losses (333) (252) EIP receivables, net of allowance for credit losses and imputed discount $ 7,734 $ 7,577 Classified on the condensed consolidated balance sheets as: Equipment installment plan receivables, net of allowance for credit losses and imputed discount $ 5,129 $ 4,748 Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount 2,605 2,829 EIP receivables, net of allowance for credit losses and imputed discount $ 7,734 $ 7,577 Many of our loss estimation techniques rely on delinquency-based models; therefore, delinquency is an important indicator of credit quality in the establishment of our allowance for credit losses for EIP receivables. We manage our EIP receivables portfolio segment using delinquency and customer credit class as key credit quality indicators. The following table presents the amortized cost of our EIP receivables by delinquency status, customer credit class and year of origination as of June 30, 2022: Originated in 2022 Originated in 2021 Originated prior to 2021 Total EIP Receivables, net of (in millions) Prime Subprime Prime Subprime Prime Subprime Prime Subprime Grand total Current - 30 days past due $ 2,171 $ 1,546 $ 2,273 $ 1,341 $ 393 $ 181 $ 4,837 $ 3,068 $ 7,905 31 - 60 days past due 16 24 17 27 3 3 36 54 90 61 - 90 days past due 6 9 7 13 1 2 14 24 38 More than 90 days past due 3 4 8 13 2 4 13 21 34 EIP receivables, net of unamortized imputed discount $ 2,196 $ 1,583 $ 2,305 $ 1,394 $ 399 $ 190 $ 4,900 $ 3,167 $ 8,067 We estimate credit losses on our EIP receivables segment by applying an expected credit loss model, which relies on historical loss data adjusted for current conditions to calculate default probabilities or an estimate for the frequency of customer default. Our assessment of default probabilities includes receivables delinquency status, historical loss experience, how long the receivables have been outstanding and customer credit ratings, as well as customer tenure. We multiply these estimated default probabilities by our estimated loss given default, which is the estimated amount or severity of the default loss after adjusting for estimated recoveries. As we do for our accounts receivable portfolio segment, we consider the need to adjust our estimate of credit losses on EIP receivables for reasonable and supportable forecasts of economic conditions through monitoring external forecasts and periodic internal statistical analyses. Activity for the six months ended June 30, 2022 and 2021, in the allowance for credit losses and unamortized imputed discount balances for the accounts receivable and EIP receivables segments were as follows: June 30, 2022 June 30, 2021 (in millions) Accounts Receivable Allowance EIP Receivables Allowance Total Accounts Receivable Allowance EIP Receivables Allowance Total Allowance for credit losses and imputed discount, beginning of period $ 146 $ 630 $ 776 $ 194 $ 605 $ 799 Bad debt expense 201 320 521 76 78 154 Write-offs, net of recoveries (170) (240) (410) (147) (104) (251) Change in imputed discount on short-term and long-term EIP receivables N/A 75 75 N/A 91 91 Impact on the imputed discount from sales of EIP receivables N/A (63) (63) N/A (73) (73) Allowance for credit losses and imputed discount, end of period $ 177 $ 722 $ 899 $ 123 $ 597 $ 720 Off-Balance-Sheet Credit Exposures We do not have material, unmitigated off-balance-sheet credit exposures as of June 30, 2022. In connection with the sales of certain service and EIP accounts receivable pursuant to the sale arrangements, we have deferred purchase price assets included on our Condensed Consolidated Balance Sheets measured at fair value that are based on a discounted cash flow model using Level 3 inputs, including customer default rates and credit worthiness, dilutions and recoveries. See Note 3 – Sales of Certain Receivables for further information. |
Sales of Certain Receivables
Sales of Certain Receivables | 6 Months Ended |
Jun. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Sales of Certain Receivables | Note 3 – Sales of Certain Receivables We regularly enter into transactions to sell certain service accounts receivable and EIP receivables. The transactions, including our continuing involvement with the sold receivables and the respective impacts to our condensed consolidated financial statements, are described below. Sales of EIP Receivables As of both June 30, 2022, and December 31, 2021, the EIP sale arrangement provided funding of $1.3 billion. In connection with this EIP sale arrangement, we formed a wholly owned subsidiary, which qualifies as a bankruptcy remote entity (the “EIP BRE”). We consolidate the EIP BRE under the VIE model. The following table summarizes the carrying amounts and classification of assets, which consist primarily of the deferred purchase price, and liabilities included on our Condensed Consolidated Balance Sheets with respect to the EIP BRE: (in millions) June 30, December 31, Other current assets $ 369 $ 424 Other assets 110 125 Sales of Service Accounts Receivable The maximum funding commitment of the service receivable sale arrangement is $950 million and the facility expires in February 2023. As of both June 30, 2022, and December 31, 2021, the service receivable sale arrangement provided funding of $775 million. In connection with the service receivable sale arrangement, we formed a wholly owned subsidiary, which qualifies as a bankruptcy remote entity, to sell service accounts receivable (the “Service BRE”). We consolidate the Service BRE under the VIE model. The following table summarizes the carrying amounts and classification of assets, which consist primarily of the deferred purchase price, and liabilities included on our Condensed Consolidated Balance Sheets with respect to the Service BRE: (in millions) June 30, December 31, Other current assets $ 227 $ 231 Other current liabilities 494 348 Sales of Receivables The following table summarizes the impact of the sale of certain service receivables and EIP receivables on our Condensed Consolidated Balance Sheets: (in millions) June 30, December 31, Derecognized net service receivables and EIP receivables $ 2,315 $ 2,492 Other current assets 596 655 of which, deferred purchase price 594 654 Other long-term assets 110 125 of which, deferred purchase price 110 125 Other current liabilities 494 348 Net cash proceeds since inception 1,741 1,754 Of which: Change in net cash proceeds during the year-to-date period (13) 39 Net cash proceeds funded by reinvested collections 1,754 1,715 At inception, we elected to measure the deferred purchase price at fair value with changes in fair value included in Selling, general and administrative expense on our Condensed Consolidated Statements of Comprehensive (Loss) Income. The fair value of the deferred purchase price is determined based on a discounted cash flow model which uses primarily Level 3 inputs, including customer default rates. As of June 30, 2022, and December 31, 2021, our deferred purchase price related to the sales of service receivables and EIP receivables was $704 million and $779 million, respectively. We recognized a loss from sales of receivables, including changes in fair value of the deferred purchase price, of $61 million and a gain of $12 million for the three months ended June 30, 2022 and 2021, respectively, and a loss of $108 million and a gain of $30 million for the six months ended June 30, 2022 and 2021, respectively, in Selling, general and administrative expense on our Condensed Consolidated Statements of Comprehensive (Loss) Income. Continuing Involvement |
Spectrum License Transactions
Spectrum License Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Spectrum License Transactions | Note 4 – Spectrum License Transactions The following table summarizes our spectrum license activity for the six months ended June 30, 2022: (in millions) 2022 Spectrum licenses, beginning of year $ 92,606 Spectrum license acquisitions 3,026 Spectrum licenses, end of period $ 95,632 Spectrum Transactions In January 2022, the FCC announced that we were the winning bidder of 199 licenses in Auction 110 (mid-band spectrum) for an aggregate purchase price of $2.9 billion. At inception of Auction 110 in September 2021, we deposited $100 million. We paid the FCC the remaining $2.8 billion for the licenses won in the auction in February 2022. On May 4, 2022, the FCC issued us the licenses won in Auction 110. The licenses are included in Spectrum licenses in our Condensed Consolidated Balance Sheets as of June 30, 2022. Cash payments to acquire spectrum licenses and payments for costs to clear spectrum are included in Purchases of spectrum licenses and other intangible assets, including deposits, in our Condensed Consolidated Statements of Cash Flows. DISH License Purchase Agreement On July 1, 2020, we and DISH Network Corporation (“DISH”) entered into a license purchase agreement (the “License Purchase Agreement”) pursuant to which DISH has the option to purchase certain 800 MHz spectrum licenses for a total of approximately $3.6 billion in a transaction to be completed, subject to an application for FCC approval, by July 1, 2023, or within five days of FCC approval, whichever date is later. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5 – Fair Value Measurements The carrying values of Cash and cash equivalents, Accounts receivable and Accounts payable and accrued liabilities approximate fair value due to the short-term maturities of these instruments. The carrying values of EIP receivables approximate fair value as the receivables are recorded at their present value using an imputed interest rate. Derivative Financial Instruments Periodically, we use derivatives to manage exposure to market risk, such as interest rate risk. We designate certain derivatives as hedging instruments in a qualifying hedge accounting relationship (cash flow hedge) to help minimize significant, unplanned fluctuations in cash flows caused by interest rate volatility. We do not use derivatives for trading or speculative purposes. Cash flows associated with qualifying hedge derivative instruments are presented in the same category on the Condensed Consolidated Statements of Cash Flows as the item being hedged. We did not have any significant derivative instruments outstanding as of June 30, 2022, and December 31, 2021. Interest Rate Lock Derivatives In April 2020, we terminated our interest rate lock derivatives entered into in October 2018. Aggregate changes in the fair value of the interest rate lock derivatives, net of tax and amortization, of $1.4 billion and $1.5 billion are presented in Accumulated other comprehensive loss on our Condensed Consolidated Balance Sheets as of June 30, 2022, and December 31, 2021, respectively. For the three months ended June 30, 2022 and 2021, $50 million and $47 million, respectively, and for the six months ended June 30, 2022 and 2021, $100 million and $93 million, respectively, were amortized from Accumulated other comprehensive loss into Interest expense, net, in the Condensed Consolidated Statements of Comprehensive (Loss) Income. We expect to amortize $211 million of the Accumulated other comprehensive loss associated with the derivatives into Interest expense, net, over the 12 months ending June 30, 2023. Deferred Purchase Price Assets In connection with the sales of certain service and EIP accounts receivable pursuant to the sale arrangements, we have deferred purchase price assets measured at fair value that are based on a discounted cash flow model using unobservable Level 3 inputs, including customer default rates. See Note 3 – Sales of Certain Receivables for further information. The carrying amounts of our deferred purchase price assets, which are measured at fair value on a recurring basis and are included on our Condensed Consolidated Balance Sheets, were $704 million and $779 million as of June 30, 2022, and December 31, 2021, respectively. Fair value was equal to the carrying amount at June 30, 2022, and December 31, 2021. Debt The fair value of our Senior Notes and Senior Secured Notes to third parties was determined based on quoted market prices in active markets, and therefore were classified as Level 1 within the fair value hierarchy. The fair value of our Senior Notes to affiliates was determined based on a discounted cash flow approach using market interest rates of instruments with similar terms and maturities and an estimate for our standalone credit risk. Accordingly, our Senior Notes to affiliates were classified as Level 2 within the fair value hierarchy. Although we have determined the estimated fair values using available market information and commonly accepted valuation methodologies, considerable judgment was required in interpreting market data to develop fair value estimates for the Senior Notes to affiliates. The fair value estimates were based on information available as of June 30, 2022, and December 31, 2021. As such, our estimates are not necessarily indicative of the amount we could realize in a current market exchange. The carrying amounts and fair values of our short-term and long-term debt included on our Condensed Consolidated Balance Sheets were as follows: Level within the Fair Value Hierarchy June 30, 2022 December 31, 2021 (in millions) Carrying Amount (1) Fair Value (1) Carrying Amount (1) Fair Value (1) Liabilities: Senior Notes to third parties 1 $ 29,629 $ 27,927 $ 30,309 $ 32,093 Senior Notes to affiliates 2 1,495 1,441 3,739 3,844 Senior Secured Notes to third parties 1 39,830 35,066 40,098 42,393 (1) Excludes $35 million and $47 million as of June 30, 2022, and December 31, 2021, respectively, in other financial liabilities as the carrying values approximate fair value primarily due to the short-term maturities of these instruments. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 6 – Debt The following table sets forth the debt balances and activity as of and for the six months ended June 30, 2022 : (in millions) December 31, Note Redemptions (1) Repayments Reclassifications (1) Other (2) June 30, Short-term debt $ 3,378 $ (500) $ (264) $ 356 $ (28) $ 2,942 Long-term debt 67,076 — — (356) (168) 66,552 Total debt to third parties 70,454 (500) (264) — (196) 69,494 Short-term debt to affiliates 2,245 (2,250) — — 5 — Long-term debt to affiliates 1,494 — — — 1 1,495 Total debt $ 74,193 $ (2,750) $ (264) $ — $ (190) $ 70,989 (1) Note redemptions and reclassifications are recorded net of related issuance costs, discounts and premiums. (2) Other includes the amortization of premiums, discounts, debt issuance costs and consent fees. Our effective interest rate, excluding the impact of derivatives and capitalized interest, was approximately 3.8% and 4.1% for the three months ended June 30, 2022 and 2021, respectively, and 3.9% and 4.2% for the six months ended June 30, 2022 and 2021, respectively, on weighted-average debt outstanding of $71.4 billion and $75.5 billion for the three months ended June 30, 2022 and 2021, respectively, and on weighted-average debt outstanding of $72.6 billion and $74.5 billion for the six months ended June 30, 2022 and 2021, respectively. The weighted-average debt outstanding was calculated by applying an average of the monthly ending balances of total short-term and long-term debt and short-term and long-term debt to affiliates, net of unamortized premiums, discounts, debt issuance costs and consent fees. Note Redemptions and Repayments During the six months ended June 30, 2022, we made the following note redemptions and repayments: (in millions) Principal Amount Redemption or Repayment Date Redemption Price 4.000% Senior Notes due 2022 $ 500 March 16, 2022 100.000 % 4.000% Senior Notes to affiliates due 2022 1,000 March 16, 2022 100.000 % 5.375% Senior Notes to affiliates due 2022 1,250 April 15, 2022 N/A Total Redemptions $ 2,750 4.738% Secured Series 2018-1 A-1 Notes due 2025 $ 263 Various N/A Other debt 1 Various N/A Total Repayments $ 264 |
Tower Obligations
Tower Obligations | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Tower Obligations | Note 7 – Tower Obligations Existing CCI Tower Lease Arrangements In 2012, we conveyed to Crown Castle International Corp. (“CCI”) the exclusive right to manage and operate approximately 6,200 tower sites (“CCI Lease Sites”) via a master prepaid lease with site lease terms ranging from 23 to 37 years. CCI has fixed-price purchase options for the CCI Lease Sites totaling approximately $2.0 billion, exercisable annually on a per-tranche basis at the end of the lease term during the period from December 31, 2035, through December 31, 2049. If CCI exercises its purchase option for any tranche, it must purchase all the towers in the tranche. We lease back a portion of the space at certain tower sites. Assets and liabilities associated with the operation of the tower sites were transferred to special purpose entities (“SPEs”). Assets included ground lease agreements or deeds for the land on which the towers are situated, the towers themselves and existing subleasing agreements with other mobile network operator tenants that lease space at the tower sites. Liabilities included the obligation to pay ground lease rentals, property taxes and other executory costs. We determined the SPEs containing the CCI Lease Sites (“Lease Site SPEs”) are VIEs as they lack sufficient equity to finance their activities. We have a variable interest in the Lease Site SPEs but are not the primary beneficiary as we lack the power to direct the activities that most significantly impact the Lease Site SPEs’ economic performance. These activities include managing tenants and underlying ground leases, performing repair and maintenance on the towers, the obligation to absorb expected losses and the right to receive the expected future residual returns from the purchase option to acquire the CCI Lease Sites. As we determined that we are not the primary beneficiary and do not have a controlling financial interest in the Lease Site SPEs, the Lease Site SPEs are not included in our condensed consolidated financial statements. However, we also considered if this arrangement resulted in the sale of the CCI Lease Sites for which we would de-recognize the tower assets. By assessing whether control had transferred, we concluded that transfer of control criteria, as discussed in the revenue standard, were not met. Accordingly, we recorded this arrangement as a financing whereby we recorded debt, a financial obligation, and the CCI Lease Sites tower assets remained on our Condensed Consolidated Balance Sheets. We recorded long-term financial obligations in the amount of the net proceeds received and recognize interest on the tower obligations. The tower obligations are increased by interest expense and amortized through contractual leaseback payments made by us to CCI and through net cash flows generated and retained by CCI from operation of the tower sites. Acquired CCI Tower Lease Arrangements Prior to the merger (the “Merger”) with Sprint Corporation (“Sprint”), Sprint entered into a lease-out and leaseback arrangement with Global Signal Inc., a third party that was subsequently acquired by CCI, that conveyed to CCI the exclusive right to manage and operate approximately 6,400 tower sites (“Master Lease Sites”) via a master prepaid lease. These agreements were assumed upon the close of the Merger, at which point the remaining term of the lease-out was approximately 17 years with no renewal options. CCI has a fixed price purchase option for all (but not less than all) of the leased or subleased sites for approximately $2.3 billion, exercisable one year prior to the expiration of the agreement and ending 120 days prior to the expiration of the agreement. We lease back a portion of the space at certain tower sites. We considered if this arrangement resulted in the sale of the Master Lease Sites for which we would de-recognize the tower assets. By assessing whether control had transferred, we concluded that transfer of control criteria, as discussed in the revenue standard, were not met. Accordingly, we recorded this arrangement as a financing whereby we recorded debt, a financial obligation, and the Master Lease Sites tower assets remained on our Condensed Consolidated Balance Sheets. As of the closing date of the Merger, we recognized Property and equipment with a fair value of $2.8 billion and tower obligations related to amounts owed to CCI under the leaseback of $1.1 billion. Additionally, we recognized $1.7 billion in Other long-term liabilities associated with contract terms that are unfavorable to current market rates, which include unfavorable terms associated with the fixed-price purchase option in 2037. We recognize interest expense on the tower obligations. The tower obligations are increased by the interest expense and amortized through contractual leaseback payments made by us to CCI. The tower assets are reported in Property and equipment, net on our Condensed Consolidated Balance Sheets and are depreciated to their estimated residual values over the expected useful life of the towers, which is 20 years. Leaseback Arrangement On January 3, 2022, we entered into an agreement (the “Crown Agreement”) with CCI. The Crown Agreement extends the current term of the leasebacks by up to 12 years and modifies the leaseback payments for both the Existing CCI Tower Lease Arrangement and the Acquired CCI Tower Lease Arrangement. As a result of the Crown Agreement, there was an increase in our financing obligation as of the effective date of the agreement of approximately $1.2 billion, with a corresponding decrease to Other long-term liabilities associated with unfavorable contract terms. The modification resulted in a revised interest rate under the effective interest method for the tower obligations: 11.6% for the Existing CCI Tower Lease Arrangement and 5.3% for the Acquired CCI Tower Lease Arrangement. There were no changes made to either of our master prepaid leases with CCI. The following table summarizes the balances associated with both of the tower arrangements on our Condensed Consolidated Balance Sheets: (in millions) June 30, December 31, Property and equipment, net $ 2,464 $ 2,548 Tower obligations 4,006 2,806 Other long-term liabilities 554 1,712 Future minimum payments related to the tower obligations are approximately $418 million for the 12-month period ending June 30, 2023, $837 million in total for both of the 12-month periods ending June 30, 2024 and 2025, $778 million in total for both of the 12-month periods ending June 30, 2026 and 2027, and $4.7 billion in total thereafter. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 8 – Revenue from Contracts with Customers Disaggregation of Revenue We provide wireless communications services to three primary categories of customers: • Postpaid customers generally include customers who are qualified to pay after receiving wireless communications services utilizing phones, High Speed Internet, wearables, DIGITS or other connected devices, which include tablets and SyncUP products; • Prepaid customers generally include customers who pay for wireless communications services in advance; and • Wholesale customers include Machine-to-Machine and Mobile Virtual Network Operator customers that operate on our network but are managed by wholesale partners. Postpaid service revenues, including postpaid phone revenues and postpaid other revenues, were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2022 2021 2022 2021 Postpaid service revenues Postpaid phone revenues $ 10,407 $ 9,667 $ 20,638 $ 19,150 Postpaid other revenues 1,038 825 2,008 1,645 Total postpaid service revenues $ 11,445 $ 10,492 $ 22,646 $ 20,795 We operate as a single operating segment. The balances presented in each revenue line item on our Condensed Consolidated Statements of Comprehensive (Loss) Income represent categories of revenue from contracts with customers disaggregated by type of product and service. Postpaid and prepaid service revenues also include revenues earned for providing premium services to customers, such as device insurance services and customer-based, third-party services. Revenue generated from the lease of mobile communication devices is included in Equipment revenues on our Condensed Consolidated Statements of Comprehensive (Loss) Income. Equipment revenues from the lease of mobile communication devices were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2022 2021 2022 2021 Equipment revenues from the lease of mobile communication devices $ 386 $ 914 $ 873 $ 1,955 We provide wireline communication services to domestic and international customers. Wireline service revenues were $143 million and $187 million for the three months ended June 30, 2022 and 2021, respectively, and $289 million and $384 million for the six months ended June 30, 2022 and 2021, respectively. Wireline service revenues are presented in Wholesale and other service revenues on our Condensed Consolidated Statements of Comprehensive (Loss) Income. Contract Balances The contract asset and contract liability balances from contracts with customers as of June 30, 2022, and December 31, 2021, were as follows: (in millions) Contract Contract Liabilities Balance as of December 31, 2021 $ 286 $ 763 Balance as of June 30, 2022 294 756 Change $ 8 $ (7) Contract assets primarily represent revenue recognized for equipment sales with promotional bill credits offered to customers that are paid over time and are contingent on the customer maintaining a service contract. The change in the contract asset balance includes customer activity related to new promotions, offset by billings on existing contracts and impairment which is recognized as bad debt expense. The current portion of our contract assets of approximately $227 million and $219 million as of June 30, 2022, and December 31, 2021, respectively, was included in Other current assets on our Condensed Consolidated Balance Sheets. Contract liabilities are recorded when fees are collected, or we have an unconditional right to consideration (a receivable) in advance of delivery of goods or services. Changes in contract liabilities are primarily related to the activity of prepaid customers. Contract liabilities are primarily included in Deferred revenue on our Condensed Consolidated Balance Sheets. Revenues for the three and six months ended June 30, 2022 and 2021, include the following: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2022 2021 2022 2021 Amounts included in the beginning of year contract liability balance $ 31 $ 41 $ 685 $ 724 Remaining Performance Obligations As of June 30, 2022, the aggregate amount of transaction price allocated to remaining service performance obligations for postpaid contracts with subsidized devices and promotional bill credits that result in an extended service contract is $700 million. We expect to recognize revenue as the service is provided on these postpaid contracts over an extended contract term of 24 months from the time of origination. Information about remaining performance obligations that are part of a contract that has an original expected duration of one year or less has been excluded from the above, which primarily consists of monthly service contracts. Certain of our wholesale, roaming and service contracts include variable consideration based on usage and performance. This variable consideration has been excluded from the disclosure of remaining performance obligations. As of June 30, 2022, the aggregate amount of the contractual minimum consideration for wholesale, roaming and service contracts is $1.1 billion, $2.3 billion and $4.7 billion for 2022, 2023, and 2024 and beyond, respectively. These contracts have a remaining duration ranging from less than one year to eight years. Contract Costs The balance of deferred incremental costs to obtain contracts with customers was $1.7 billion and $1.5 billion as of June 30, 2022, and December 31, 2021, respectively, and is included in Other assets on our Condensed Consolidated Balance Sheets. Deferred contract costs incurred to obtain postpaid service contracts are amortized over a period of 24 months. The amortization period is monitored to reflect any significant change in assumptions. Amortization of deferred contract costs included in Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive (Loss) Income were $358 million and $264 million for the three months ended June 30, 2022 and 2021, respectively, and $682 million and $512 million for the six months ended June 30, 2022 and 2021, respectively. The deferred contract cost asset is assessed for impairment on a periodic basis. There were no impairment losses recognized on deferred contract cost assets for the three and six months ended June 30, 2022 and 2021. |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | Note 9 – (Loss) Earnings Per Share The computation of basic and diluted (loss) earnings per share was as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions, except shares and per share amounts) 2022 2021 2022 2021 Net (loss) income $ (108) $ 978 $ 605 $ 1,911 Weighted-average shares outstanding – basic 1,253,932,986 1,247,563,331 1,252,228,959 1,245,552,847 Effect of dilutive securities: Outstanding stock options and unvested stock awards — 6,154,791 4,644,868 8,711,617 Weighted-average shares outstanding – diluted 1,253,932,986 1,253,718,122 1,256,873,827 1,254,264,464 (Loss) earnings per share – basic $ (0.09) $ 0.78 $ 0.48 $ 1.53 (Loss) earnings per share – diluted (0.09) 0.78 0.48 1.52 Potentially dilutive securities: Outstanding stock options and unvested stock awards 3,921,770 50,873 73,885 26,646 SoftBank contingent consideration (1) 48,751,557 48,751,557 48,751,557 48,751,557 (1) Represents the weighted-average SoftBank Specified Shares that are contingently issuable from the acquisition date of April 1, 2020, pursuant to a letter agreement dated February 20, 2020, between T-Mobile, SoftBank and Deutsche Telekom AG (“DT”). As of June 30, 2022, we had authorized 100 million shares of preferred stock, with a par value of $0.00001 per share. There was no preferred stock outstanding as of June 30, 2022 and 2021. Potentially dilutive securities were not included in the computation of diluted (loss) earnings per share if to do so would have been anti-dilutive. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 10 – Leases Lessee We are a lessee for non-cancelable operating and financing leases for cell sites, switch sites, retail stores, network equipment and office facilities with contractual terms that generally extend through 2035. Additionally, we lease dark fiber through non-cancelable operating leases with contractual terms that generally extend through 2041. The majority of cell site leases have a non-cancelable term of five five three On January 3, 2022, we entered into the Crown Agreement with CCI that modified the terms of our leased towers from CCI. The Crown Agreement modifies the monthly rental payments we will pay for sites currently leased by us, extends the non-cancellable lease term for the majority of our sites through December 2033 and will allow us the flexibility to facilitate our network integration and decommissioning activities through new site builds and termination of duplicate tower locations. The initial non-cancellable term is through December 31, 2033, followed by three optional five-year renewals. As a result of this modification, we remeasured the associated right-of use assets and lease liabilities resulting in an increase of $5.3 billion to each on the effective date of the modification, with a corresponding gross increase to both deferred tax liabilities and assets of $1.3 billion. The components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2022 2021 2022 2021 Operating lease expense $ 1,985 $ 1,533 $ 3,733 $ 2,924 Financing lease expense: Amortization of right-of-use assets 194 175 379 348 Interest on lease liabilities 16 16 31 36 Total financing lease expense 210 191 410 384 Variable lease expense 122 90 249 185 Total lease expense $ 2,317 $ 1,814 $ 4,392 $ 3,493 As of June 30, 2022, the weighted-average remaining lease term and discount rate for operating leases were 10 years and 3.9%, respectively. Maturities of lease liabilities as of June 30, 2022, were as follows: (in millions) Operating Leases Finance Leases Twelve Months Ending June 30, 2023 $ 4,437 $ 1,259 2024 4,482 951 2025 4,044 569 2026 3,606 76 2027 3,311 27 Thereafter 22,819 17 Total lease payments 42,699 2,899 Less: imputed interest 8,435 82 Total $ 34,264 $ 2,817 Interest payments for financing leases were $16 million and $17 million for the three months ended June 30, 2022 and 2021, respectively, and $31 million and $36 million for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, we have additional operating leases for commercial properties that have not yet commenced with future lease payments of approximately $214 million. |
Leases | Note 10 – Leases Lessee We are a lessee for non-cancelable operating and financing leases for cell sites, switch sites, retail stores, network equipment and office facilities with contractual terms that generally extend through 2035. Additionally, we lease dark fiber through non-cancelable operating leases with contractual terms that generally extend through 2041. The majority of cell site leases have a non-cancelable term of five five three On January 3, 2022, we entered into the Crown Agreement with CCI that modified the terms of our leased towers from CCI. The Crown Agreement modifies the monthly rental payments we will pay for sites currently leased by us, extends the non-cancellable lease term for the majority of our sites through December 2033 and will allow us the flexibility to facilitate our network integration and decommissioning activities through new site builds and termination of duplicate tower locations. The initial non-cancellable term is through December 31, 2033, followed by three optional five-year renewals. As a result of this modification, we remeasured the associated right-of use assets and lease liabilities resulting in an increase of $5.3 billion to each on the effective date of the modification, with a corresponding gross increase to both deferred tax liabilities and assets of $1.3 billion. The components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2022 2021 2022 2021 Operating lease expense $ 1,985 $ 1,533 $ 3,733 $ 2,924 Financing lease expense: Amortization of right-of-use assets 194 175 379 348 Interest on lease liabilities 16 16 31 36 Total financing lease expense 210 191 410 384 Variable lease expense 122 90 249 185 Total lease expense $ 2,317 $ 1,814 $ 4,392 $ 3,493 As of June 30, 2022, the weighted-average remaining lease term and discount rate for operating leases were 10 years and 3.9%, respectively. Maturities of lease liabilities as of June 30, 2022, were as follows: (in millions) Operating Leases Finance Leases Twelve Months Ending June 30, 2023 $ 4,437 $ 1,259 2024 4,482 951 2025 4,044 569 2026 3,606 76 2027 3,311 27 Thereafter 22,819 17 Total lease payments 42,699 2,899 Less: imputed interest 8,435 82 Total $ 34,264 $ 2,817 Interest payments for financing leases were $16 million and $17 million for the three months ended June 30, 2022 and 2021, respectively, and $31 million and $36 million for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, we have additional operating leases for commercial properties that have not yet commenced with future lease payments of approximately $214 million. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 – Commitments and Contingencies Purchase Commitments We have commitments for non-dedicated transportation lines with varying expiration terms that generally extend through 2038. In addition, we have commitments to purchase wireless devices, network services, equipment, software, marketing sponsorship agreements and other items in the ordinary course of business, with various terms through 2043. Our purchase commitments are approximately $4.4 billion for the 12-month period ending June 30, 2023, $5.3 billion in total for both of the 12-month periods ending June 30, 2024 and 2025, $2.5 billion in total for both of the 12-month periods ending June 30, 2026 and 2027, and $2.9 billion in total thereafter. These amounts are not reflective of our entire anticipated purchases under the related agreements but are determined based on the non-cancelable quantities or termination amounts to which we are contractually obligated. Spectrum Leases We lease spectrum from various parties. These leases include service obligations to the lessors. Certain spectrum leases provide for minimum lease payments, additional charges, renewal options and escalation clauses. Leased spectrum agreements have varying expiration terms that generally extend through 2050. We expect that all renewal periods in our spectrum leases will be exercised by us. Certain spectrum leases also include purchase options and right-of-first refusal clauses in which we are provided the opportunity to exercise our purchase option if the lessor receives a purchase offer from a third party. The purchase of the leased spectrum is at our option and therefore the option price is not included in the commitments below. Our spectrum lease and service credit commitments, including renewal periods, are approximately $330 million for the 12-month period ending June 30, 2023, $599 million in total for both of the 12-month periods ending June 30, 2024 and 2025, $615 million in total for both of the 12-month periods ending June 30, 2026 and 2027, and $4.7 billion in total thereafter. Contingencies and Litigation Litigation and Regulatory Matters We are involved in various lawsuits and disputes, claims, government agency investigations and enforcement actions, and other proceedings (“Litigation and Regulatory Matters”) that arise in the ordinary course of business, which include claims of patent infringement (most of which are asserted by non-practicing entities primarily seeking monetary damages), class actions, and proceedings to enforce FCC or other government agency rules and regulations. Those Litigation and Regulatory Matters are at various stages, and some of them may proceed to trial, arbitration, hearing, or other adjudication that could result in fines, penalties, or awards of monetary or injunctive relief in the coming 12 months if they are not otherwise resolved. We have established an accrual with respect to certain of these matters, where appropriate. The accruals are reflected in the condensed consolidated financial statements, but they are not considered to be, individually or in the aggregate, material. An accrual is established when we believe it is both probable that a loss has been incurred and an amount can be reasonably estimated. For other matters, where we have not determined that a loss is probable or because the amount of loss cannot be reasonably estimated, we have not recorded an accrual due to various factors typical in contested proceedings, including, but not limited to, uncertainty concerning legal theories and their resolution by courts or regulators, uncertain damage theories and demands, and a less than fully developed factual record. For Litigation and Regulatory Matters that may result in a contingent gain, we recognize such gains in the condensed consolidated financial statements when the gain is realized or realizable. We recognize legal costs expected to be incurred in connection with Litigation and Regulatory Matters as they are incurred. Except as otherwise specified below, we do not expect that the ultimate resolution of these Litigation and Regulatory Matters, individually or in the aggregate, will have a material adverse effect on our financial position, but we note that an unfavorable outcome of some or all of the specific matters identified below could have a material adverse impact on results of operations or cash flows for a particular period. This assessment is based on our current understanding of relevant facts and circumstances. As such, our view of these matters is subject to inherent uncertainties and may change in the future. On February 28, 2020, we received a Notice of Apparent Liability for Forfeiture and Admonishment from the FCC, which proposed a penalty against us for allegedly violating section 222 of the Communications Act and the FCC’s regulations governing the privacy of customer information. In the first quarter of 2020, we recorded an accrual for an estimated payment amount. We maintained the accrual as of June 30, 2022, and that accrual was included in Accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets. On April 1, 2020, in connection with the closing of the Merger, we assumed the contingencies and litigation matters of Sprint. Those matters include a wide variety of disputes, claims, government agency investigations and enforcement actions, and other proceedings. These matters include, among other things, certain ongoing FCC and state government agency investigations into Sprint’s Lifeline program. In September 2019, Sprint notified the FCC that it had claimed monthly subsidies for serving subscribers even though these subscribers may not have met usage requirements under Sprint's usage policy for the Lifeline program, due to an inadvertent coding issue in the system used to identify qualifying subscriber usage that occurred in July 2017 while the system was being updated. Sprint has made a number of payments to reimburse the federal government and certain states for excess subsidy payments. We note that pursuant to Amendment No. 2, dated as of February 20, 2020, to the Business Combination Agreement, dated as of April 29, 2018, by and among the Company, Sprint and the other parties named therein (as amended, the “Business Combination Agreement”), SoftBank agreed to indemnify us against certain specified matters and losses, including those relating to the Lifeline matters described above. Resolution of these matters could require making additional reimbursements and paying additional fines and penalties, which we do not expect to have a significant impact on our financial results. We expect that any additional liabilities related to these indemnified matters would be indemnified and reimbursed by SoftBank. On June 1, 2021, a putative shareholder class action and derivative lawsuit was filed in the Delaware Court of Chancery, Dinkevich v. Deutsche Telekom AG, et al. , Case No. C.A. No. 2021-0479, against DT, SoftBank and certain of our current and former officers and directors, asserting breach of fiduciary duty claims relating to the repricing amendment to the Business Combination Agreement, and to SoftBank’s monetization of its T-Mobile shares. We are also named as a nominal defendant in the case. We are unable to predict the potential outcome of these claims. We intend to vigorously defend this lawsuit. In October 2020, we notified Mobile Virtual Network Operators (“MVNOs”) using the legacy Sprint CDMA network that we planned to sunset that network on December 31, 2021. In response to that notice, DISH, which had Boost Mobile customers who used the legacy Sprint CDMA network, made several efforts to prevent us from sunsetting the CDMA network until mid-2023, including pursuing a Petition for Modification and related proceedings pursuant to the California Public Utilities Commission’s (the “CPUC”) April 2020 decision concerning the Merger. As of June 30, 2022, the orderly decommissioning of the legacy Sprint CDMA network has been completed. With the exception of the CPUC proceedings, all other proceedings described above have been successfully resolved. On August 12, 2021, we became aware of a potential cybersecurity issue involving unauthorized access to T-Mobile’s systems (the “August 2021 cyberattack”). We immediately began an investigation and engaged cybersecurity experts to assist with the assessment of the incident and to help determine what data was impacted. Our investigation uncovered that the perpetrator had illegally gained access to certain areas of our systems on or about March 18, 2021, but only gained access to and took data of current, former, and prospective customers beginning on or about August 3, 2021. With the assistance of our outside cybersecurity experts, we located and closed the unauthorized access to our systems and identified current, former and prospective customers whose information was impacted and notified them, consistent with state and federal requirements. We also undertook a number of other measures to demonstrate our continued support and commitment to data privacy and protection. We also coordinated with law enforcement. Our forensic investigation is complete, and we believe we have a full view of the data compromised. As a result of the August 2021 cyberattack, we have become subject to numerous lawsuits, including mass arbitration claims and multiple class action lawsuits that have been filed in numerous jurisdictions seeking, among other things, unspecified monetary damages, costs and attorneys’ fees arising out of the August 2021 cyberattack. In December 2021, the Judicial Panel on Multidistrict Litigation consolidated the federal class action lawsuits in the U.S. District Court for the Western District of Missouri under the caption In re: T-Mobile Customer Data Security Breach Litigation , Case No. 21-md-3019-BCW. On July 22, 2022, we entered into an agreement to settle the lawsuit. On July 26, 2022, we received preliminary approval of the proposed settlement, which remains subject to final court approval. Final court approval of the terms of the settlement is expected as early as January 2023 but could be delayed by appeals or other proceedings. If approved by the court, under the terms of the proposed settlement, we would pay an aggregate of $350 million to fund claims submitted by class members, the legal fees of plaintiffs’ counsel and the costs of administering the settlement. We would also commit to an aggregate incremental spend of $150 million for data security and related technology in 2022 and 2023. We anticipate that, upon court approval, the settlement will provide a full release of all claims arising out of the August 2021 cyberattack by class members, who do not opt out, against all defendants, including us, our subsidiaries and affiliates, and our directors and officers. The settlement contains no admission of liability, wrongdoing or responsibility by any of the defendants. We have the right to terminate the settlement agreement under certain conditions. If approved by the court, we anticipate that this settlement of the class action, along with other settlements of separate consumer claims that have been previously completed or are currently pending, will resolve substantially all of the claims brought to date by our current, former and prospective customers who were impacted by the 2021 cyberattack. In connection with the proposed class action settlement and the separate settlements, we recorded a total pre-tax charge of approximately $400 million for the three and six months ended June 30, 2022, in Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive (Loss) Income. The ultimate resolution of the class action depends on whether we will be able to obtain court approval of the proposed settlement, the number of plaintiffs who opt-out of the proposed settlement and whether the proposed settlement will be appealed. In addition, we have received inquiries from various government agencies, law enforcement and other governmental authorities related to the August 2021 cyberattack, which could result in substantial fines or penalties. We are responding to these inquiries and cooperating fully with these agencies and regulators. However, we cannot predict the timing or outcome of any of these matters, or whether we may be subject to further regulatory inquiries, investigations, or enforcement actions. In light of the inherent uncertainties involved in such matters and based on the information currently available to us, we believe it is reasonably possible that we could incur additional losses associated with these proceedings and inquiries, and we will continue to evaluate information as it becomes known and will record an estimate for losses at the time or times when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable. Ongoing legal and other costs related to these proceedings and inquiries, as well as any potential future actions, may be substantial, and losses associated with any adverse judgments, settlements, penalties or other resolutions of such proceedings and inquiries could be material to our business, reputation, financial condition, cash flows and operating results. In March 2022, we received $220 million in settlement of certain patent litigation. We recognized the settlement, net of legal fees, as a reduction to Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive (Loss) Income during the six months ended June 30, 2022. On June 17, 2022, plaintiffs filed a putative antitrust class action complaint in the Northern District of Illinois, Dale et al. v. Deutsche Telekom AG, et al. , Case No. 1:22-cv-03189, against DT, T-Mobile, and Softbank, alleging that the T-Mobile and Sprint merger violated the antitrust laws and harmed competition in the U.S. retail cell service market. Plaintiffs seek injunctive relief and trebled monetary damages on behalf of a purported class of AT&T and Verizon customers who plaintiffs allege paid artificially inflated prices due to the merger. We intend to vigorously defend this lawsuit, but we are unable to predict the potential outcome. |
Restructuring Costs
Restructuring Costs | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Note 12 – Restructuring Costs Upon close of the Merger, we began implementing restructuring initiatives to realize cost efficiencies and reduce redundancies. The major activities associated with the Merger restructuring initiatives to date include contract termination costs associated with the rationalization of retail stores, distribution channels, duplicative network and backhaul services and other agreements, severance costs associated with the integration of redundant processes and functions and the decommissioning of certain small cell sites and distributed antenna systems to achieve Merger synergies in network costs. The following table summarizes the expenses incurred in connection with our Merger restructuring initiatives: (in millions) Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Incurred to Date Contract termination costs $ 56 $ 56 $ 248 Severance costs 29 33 435 Network decommissioning 191 324 1,005 Total restructuring plan expenses $ 276 $ 413 $ 1,688 The expenses associated with our Merger restructuring initiatives are included in Costs of services and Selling, general and administrative on our Condensed Consolidated Statements of Comprehensive (Loss) Income. Our Merger restructuring initiatives also include the acceleration or termination of certain of our operating and financing leases for cell sites, switch sites, retail stores, network equipment and office facilities. Incremental expenses associated with accelerating amortization of the right-of-use assets on lease contracts were $747 million and $261 million for the three months ended June 30, 2022 and 2021, respectively, and $1.2 billion and $384 million for the six months ended June 30, 2022 and 2021, respectively, and are included in Costs of services and Selling, general and administrative on our Condensed Consolidated Statements of Comprehensive (Loss) Income. The changes in the liabilities associated with our Merger restructuring initiatives, including expenses incurred and cash payments, are as follows: (in millions) December 31, Expenses Incurred Cash Payments Adjustments for Non-Cash Items (1) June 30, Contract termination costs $ 14 $ 56 $ (9) $ — $ 61 Severance costs 1 33 (7) — 27 Network decommissioning 71 324 (117) (70) 208 Total $ 86 $ 413 $ (133) $ (70) $ 296 (1) Non-cash items consist of the write-off of assets within Network decommissioning. The liabilities accrued in connection with our Merger restructuring initiatives are presented in Accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets. Our Merger restructuring activities are expected to occur over the next two years with substantially all costs incurred by the end of fiscal year 2023. We are evaluating additional restructuring initiatives, which are dependent on consultations and negotiation with certain counterparties and the expected impact on our business operations, which could affect the amount or timing of the restructuring costs and related payments. |
Additional Financial Informatio
Additional Financial Information | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Financial Statement Elements [Abstract] | |
Additional Financial Information | Note 13 – Additional Financial Information Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities are summarized as follows: (in millions) June 30, December 31, Accounts payable $ 6,292 $ 6,499 Payroll and related benefits 1,209 1,343 Property and other taxes, including payroll 1,580 1,830 Accrued interest 708 710 Commissions 310 348 Toll and interconnect 243 248 Other 840 427 Accounts payable and accrued liabilities $ 11,182 $ 11,405 Book overdrafts included in accounts payable were $273 million and $378 million as of June 30, 2022, and December 31, 2021, respectively. Supplemental Condensed Consolidated Statements of Cash Flows Information The following table summarizes T-Mobile’s supplemental cash flow information: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2022 2021 2022 2021 Interest payments, net of amounts capitalized $ 989 $ 913 $ 1,767 $ 1,858 Operating lease payments 1,042 1,263 2,090 2,914 Income tax payments 63 63 63 85 Non-cash investing and financing activities Non-cash beneficial interest obtained in exchange for securitized receivables 990 1,089 2,008 2,470 Change in accounts payable and accrued liabilities for purchases of property and equipment (68) (367) (251) (540) Leased devices transferred from inventory to property and equipment 83 333 212 818 Returned leased devices transferred from property and equipment to inventory (95) (416) (278) (861) Increase in Tower obligations from contract modification — — 1,158 — Operating lease right-of-use assets obtained in exchange for lease obligations 591 1,043 6,566 1,954 Financing lease right-of-use assets obtained in exchange for lease obligations 551 377 849 486 Wireline Impairment We provide wireline communication services to domestic and international customers via the legacy Sprint Wireline network acquired through the Merger. The legacy Sprint Wireline network is primarily comprised of owned property and equipment, including land, buildings, communication systems and data processing equipment, fiber optic cable and operating lease right-of-use assets. Previously, the operation of the legacy Sprint CDMA and LTE wireless networks was supported by the legacy Sprint Wireline network. During the second quarter of 2022, we retired the legacy Sprint CDMA network and began the orderly shut-down of the LTE network. We assess long-lived assets for impairment when events or circumstances indicate that they might be impaired. We determined that the retirement of the legacy Sprint CDMA and LTE wireless networks triggered the need to assess the Wireline long-lived assets for impairment, as these assets no longer support our wireless network and the associated customers and cash flows in a significant manner. In evaluating whether the Wireline long-lived assets are impaired, we estimated the fair value of these assets using a combination of the cost, income and market approaches, including market participant assumptions. The fair value measurement of the Wireline assets was estimated using significant inputs not observable in the market (Level 3). The results of this assessment indicated that certain Wireline long-lived assets were impaired, and as a result, we recorded non-cash impairment expense of $477 million during the three and six months ended June 30, 2022, of which $258 million is related to Wireline Property and equipment, $212 million is related to Operating lease right-of-use assets and $7 million is related to Other intangible assets. In measuring and allocating the impairment expense to individual Wireline long-lived assets, we did not impair the long-lived assets below their individual fair values. After recording the impairment expense, the carrying amount of the Wireline long-lived assets recorded in our Condensed Consolidated Balance Sheet is $675 million as of June 30, 2022. The expense is included within Impairment expense in our Condensed Consolidated Statements of Comprehensive (Loss) Income. There was no impairment expense recognized for the three and six months ended June 30, 2021. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14 – Subsequent Events Subsequent to June 30, 2022, on July 22, 2022, we entered into an agreement to settle a consolidated class action lawsuit asserting claims related to the August 2021 cyberattack. In connection with the proposed class action settlement and certain separate settlements, we recorded a total pre-tax charge of approximately $400 million for the three and six months ended June 30, 2022, in Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive (Loss) Income. See N ote 11 – Commitments and Contingencies |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The unaudited condensed consolidated financial statements of T-Mobile US, Inc. (“T-Mobile,” “we,” “our,” “us” or the “Company”) include all adjustments of a normal recurring nature necessary for the fair presentation of the results for the interim periods presented. The results for the interim periods are not necessarily indicative of those for the full year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. The condensed consolidated financial statements include the balances and results of operations of T-Mobile and our consolidated subsidiaries. We consolidate majority-owned subsidiaries over which we exercise control, as well as variable interest entities (“VIEs”) where we are deemed to be the primary beneficiary and VIEs which cannot be deconsolidated, such as those related to our obligations to pay for the management and operation of certain of our wireless communications tower sites. Intercompany transactions and balances have been eliminated in consolidation. |
Basis of Accounting | The preparation of financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires our management to make estimates and assumptions that affect the financial statements and accompanying notes. |
Use of Estimates | Estimates are based on historical experience, where applicable, and other assumptions that management believes are reasonable under the circumstances. Estimates are inherently subject to judgment and actual results could differ from those estimates. |
Accounting Pronouncements Adopted During the Current Year/Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Adopted During the Current Year Reference Rate Reform In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” and has since modified the standard with ASU 2021-01, “Reference Rate Reform (Topic 848): Scope” (together, the “reference rate reform standard”). The reference rate reform standard provides temporary optional expedients and allows for certain exceptions to applying existing GAAP for contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued as a result of reference rate reform. The reference rate reform standard is available for adoption through December 31, 2022, and the optional expedients for contract modifications must be elected for all arrangements within a given Accounting Standards Codification (“ASC”) Topic or Industry Subtopic. As of January 1, 2022, we have elected to apply the practical expedients provided by the reference rate reform standard for all ASC Topics and Industry Subtopics related to eligible contract modifications as they occur. This election did not have a material impact on our condensed consolidated financial statements for the three and six months ended June 30, 2022, and the impact of applying the election to future eligible contract modifications that occur through December 31, 2022, is also not expected to be material . Contract Assets and Contract Liabilities Acquired in a Business Combination In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The standard amends ASC 805 such that contract assets and contract liabilities acquired in a business combination are added to the list of exceptions to the recognition and measurement principles such that they are recognized and measured in accordance with ASC 606. As of January 1, 2022, we have elected to adopt this standard, and it will be applied prospectively to all business combinations occurring after this date. Accounting Pronouncements Not Yet Adopted Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB issued ASU 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The standard eliminates the accounting guidance within ASC 310-40 for troubled debt restructurings by creditors while enhancing disclosure requirements for certain loan refinancing and restructurings by |
Receivables and Related Allow_2
Receivables and Related Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Equipment Installment Plan Receivables | The following table summarizes the EIP receivables, including imputed discounts and related allowance for credit losses: (in millions) June 30, December 31, EIP receivables, gross $ 8,456 $ 8,207 Unamortized imputed discount (389) (378) EIP receivables, net of unamortized imputed discount 8,067 7,829 Allowance for credit losses (333) (252) EIP receivables, net of allowance for credit losses and imputed discount $ 7,734 $ 7,577 Classified on the condensed consolidated balance sheets as: Equipment installment plan receivables, net of allowance for credit losses and imputed discount $ 5,129 $ 4,748 Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount 2,605 2,829 EIP receivables, net of allowance for credit losses and imputed discount $ 7,734 $ 7,577 |
Schedule of Equipment Installment Plan Receivables by Credit Category | The following table presents the amortized cost of our EIP receivables by delinquency status, customer credit class and year of origination as of June 30, 2022: Originated in 2022 Originated in 2021 Originated prior to 2021 Total EIP Receivables, net of (in millions) Prime Subprime Prime Subprime Prime Subprime Prime Subprime Grand total Current - 30 days past due $ 2,171 $ 1,546 $ 2,273 $ 1,341 $ 393 $ 181 $ 4,837 $ 3,068 $ 7,905 31 - 60 days past due 16 24 17 27 3 3 36 54 90 61 - 90 days past due 6 9 7 13 1 2 14 24 38 More than 90 days past due 3 4 8 13 2 4 13 21 34 EIP receivables, net of unamortized imputed discount $ 2,196 $ 1,583 $ 2,305 $ 1,394 $ 399 $ 190 $ 4,900 $ 3,167 $ 8,067 |
Schedule of Unamortized Imputed Discount and Allowance for Credit Losses for Equipment Installment Plan Receivables | Activity for the six months ended June 30, 2022 and 2021, in the allowance for credit losses and unamortized imputed discount balances for the accounts receivable and EIP receivables segments were as follows: June 30, 2022 June 30, 2021 (in millions) Accounts Receivable Allowance EIP Receivables Allowance Total Accounts Receivable Allowance EIP Receivables Allowance Total Allowance for credit losses and imputed discount, beginning of period $ 146 $ 630 $ 776 $ 194 $ 605 $ 799 Bad debt expense 201 320 521 76 78 154 Write-offs, net of recoveries (170) (240) (410) (147) (104) (251) Change in imputed discount on short-term and long-term EIP receivables N/A 75 75 N/A 91 91 Impact on the imputed discount from sales of EIP receivables N/A (63) (63) N/A (73) (73) Allowance for credit losses and imputed discount, end of period $ 177 $ 722 $ 899 $ 123 $ 597 $ 720 |
Sales of Certain Receivables (T
Sales of Certain Receivables (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Schedule of Variable Interest Entities - EIP | The following table summarizes the carrying amounts and classification of assets, which consist primarily of the deferred purchase price, and liabilities included on our Condensed Consolidated Balance Sheets with respect to the EIP BRE: (in millions) June 30, December 31, Other current assets $ 369 $ 424 Other assets 110 125 |
Schedule of Variable Interest Entities | The following table summarizes the carrying amounts and classification of assets, which consist primarily of the deferred purchase price, and liabilities included on our Condensed Consolidated Balance Sheets with respect to the Service BRE: (in millions) June 30, December 31, Other current assets $ 227 $ 231 Other current liabilities 494 348 |
Schedule of Factoring Arrangement | The following table summarizes the impact of the sale of certain service receivables and EIP receivables on our Condensed Consolidated Balance Sheets: (in millions) June 30, December 31, Derecognized net service receivables and EIP receivables $ 2,315 $ 2,492 Other current assets 596 655 of which, deferred purchase price 594 654 Other long-term assets 110 125 of which, deferred purchase price 110 125 Other current liabilities 494 348 Net cash proceeds since inception 1,741 1,754 Of which: Change in net cash proceeds during the year-to-date period (13) 39 Net cash proceeds funded by reinvested collections 1,754 1,715 |
Spectrum License Transactions (
Spectrum License Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Spectrum Licenses | The following table summarizes our spectrum license activity for the six months ended June 30, 2022: (in millions) 2022 Spectrum licenses, beginning of year $ 92,606 Spectrum license acquisitions 3,026 Spectrum licenses, end of period $ 95,632 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Fair Values of Long-term Debt | The carrying amounts and fair values of our short-term and long-term debt included on our Condensed Consolidated Balance Sheets were as follows: Level within the Fair Value Hierarchy June 30, 2022 December 31, 2021 (in millions) Carrying Amount (1) Fair Value (1) Carrying Amount (1) Fair Value (1) Liabilities: Senior Notes to third parties 1 $ 29,629 $ 27,927 $ 30,309 $ 32,093 Senior Notes to affiliates 2 1,495 1,441 3,739 3,844 Senior Secured Notes to third parties 1 39,830 35,066 40,098 42,393 (1) Excludes $35 million and $47 million as of June 30, 2022, and December 31, 2021, respectively, in other financial liabilities as the carrying values approximate fair value primarily due to the short-term maturities of these instruments. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Balances and Activity | The following table sets forth the debt balances and activity as of and for the six months ended June 30, 2022 : (in millions) December 31, Note Redemptions (1) Repayments Reclassifications (1) Other (2) June 30, Short-term debt $ 3,378 $ (500) $ (264) $ 356 $ (28) $ 2,942 Long-term debt 67,076 — — (356) (168) 66,552 Total debt to third parties 70,454 (500) (264) — (196) 69,494 Short-term debt to affiliates 2,245 (2,250) — — 5 — Long-term debt to affiliates 1,494 — — — 1 1,495 Total debt $ 74,193 $ (2,750) $ (264) $ — $ (190) $ 70,989 (1) Note redemptions and reclassifications are recorded net of related issuance costs, discounts and premiums. |
Schedule of Debt Instrument Redemption | During the six months ended June 30, 2022, we made the following note redemptions and repayments: (in millions) Principal Amount Redemption or Repayment Date Redemption Price 4.000% Senior Notes due 2022 $ 500 March 16, 2022 100.000 % 4.000% Senior Notes to affiliates due 2022 1,000 March 16, 2022 100.000 % 5.375% Senior Notes to affiliates due 2022 1,250 April 15, 2022 N/A Total Redemptions $ 2,750 4.738% Secured Series 2018-1 A-1 Notes due 2025 $ 263 Various N/A Other debt 1 Various N/A Total Repayments $ 264 |
Tower Obligations (Tables)
Tower Obligations (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Impacts to Consolidated Balance Sheets | The following table summarizes the balances associated with both of the tower arrangements on our Condensed Consolidated Balance Sheets: (in millions) June 30, December 31, Property and equipment, net $ 2,464 $ 2,548 Tower obligations 4,006 2,806 Other long-term liabilities 554 1,712 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Postpaid service revenues, including postpaid phone revenues and postpaid other revenues, were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2022 2021 2022 2021 Postpaid service revenues Postpaid phone revenues $ 10,407 $ 9,667 $ 20,638 $ 19,150 Postpaid other revenues 1,038 825 2,008 1,645 Total postpaid service revenues $ 11,445 $ 10,492 $ 22,646 $ 20,795 Equipment revenues from the lease of mobile communication devices were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2022 2021 2022 2021 Equipment revenues from the lease of mobile communication devices $ 386 $ 914 $ 873 $ 1,955 |
Schedule of Contract Liability and Receivable Balances | The contract asset and contract liability balances from contracts with customers as of June 30, 2022, and December 31, 2021, were as follows: (in millions) Contract Contract Liabilities Balance as of December 31, 2021 $ 286 $ 763 Balance as of June 30, 2022 294 756 Change $ 8 $ (7) Revenues for the three and six months ended June 30, 2022 and 2021, include the following: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2022 2021 2022 2021 Amounts included in the beginning of year contract liability balance $ 31 $ 41 $ 685 $ 724 |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted (loss) earnings per share was as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions, except shares and per share amounts) 2022 2021 2022 2021 Net (loss) income $ (108) $ 978 $ 605 $ 1,911 Weighted-average shares outstanding – basic 1,253,932,986 1,247,563,331 1,252,228,959 1,245,552,847 Effect of dilutive securities: Outstanding stock options and unvested stock awards — 6,154,791 4,644,868 8,711,617 Weighted-average shares outstanding – diluted 1,253,932,986 1,253,718,122 1,256,873,827 1,254,264,464 (Loss) earnings per share – basic $ (0.09) $ 0.78 $ 0.48 $ 1.53 (Loss) earnings per share – diluted (0.09) 0.78 0.48 1.52 Potentially dilutive securities: Outstanding stock options and unvested stock awards 3,921,770 50,873 73,885 26,646 SoftBank contingent consideration (1) 48,751,557 48,751,557 48,751,557 48,751,557 (1) Represents the weighted-average SoftBank Specified Shares that are contingently issuable from the acquisition date of April 1, 2020, pursuant to a letter agreement dated February 20, 2020, between T-Mobile, SoftBank and Deutsche Telekom AG (“DT”). |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2022 2021 2022 2021 Operating lease expense $ 1,985 $ 1,533 $ 3,733 $ 2,924 Financing lease expense: Amortization of right-of-use assets 194 175 379 348 Interest on lease liabilities 16 16 31 36 Total financing lease expense 210 191 410 384 Variable lease expense 122 90 249 185 Total lease expense $ 2,317 $ 1,814 $ 4,392 $ 3,493 |
Schedule of Maturity Operating Lease Liabilities | Maturities of lease liabilities as of June 30, 2022, were as follows: (in millions) Operating Leases Finance Leases Twelve Months Ending June 30, 2023 $ 4,437 $ 1,259 2024 4,482 951 2025 4,044 569 2026 3,606 76 2027 3,311 27 Thereafter 22,819 17 Total lease payments 42,699 2,899 Less: imputed interest 8,435 82 Total $ 34,264 $ 2,817 |
Schedule of Maturity Finance Lease Liabilities | Maturities of lease liabilities as of June 30, 2022, were as follows: (in millions) Operating Leases Finance Leases Twelve Months Ending June 30, 2023 $ 4,437 $ 1,259 2024 4,482 951 2025 4,044 569 2026 3,606 76 2027 3,311 27 Thereafter 22,819 17 Total lease payments 42,699 2,899 Less: imputed interest 8,435 82 Total $ 34,264 $ 2,817 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Plan Expenses Incurred | The following table summarizes the expenses incurred in connection with our Merger restructuring initiatives: (in millions) Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Incurred to Date Contract termination costs $ 56 $ 56 $ 248 Severance costs 29 33 435 Network decommissioning 191 324 1,005 Total restructuring plan expenses $ 276 $ 413 $ 1,688 |
Schedule of Activity Related to Expenses Incurred and Cash Payments Made | The changes in the liabilities associated with our Merger restructuring initiatives, including expenses incurred and cash payments, are as follows: (in millions) December 31, Expenses Incurred Cash Payments Adjustments for Non-Cash Items (1) June 30, Contract termination costs $ 14 $ 56 $ (9) $ — $ 61 Severance costs 1 33 (7) — 27 Network decommissioning 71 324 (117) (70) 208 Total $ 86 $ 413 $ (133) $ (70) $ 296 |
Additional Financial Informat_2
Additional Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Financial Statement Elements [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities are summarized as follows: (in millions) June 30, December 31, Accounts payable $ 6,292 $ 6,499 Payroll and related benefits 1,209 1,343 Property and other taxes, including payroll 1,580 1,830 Accrued interest 708 710 Commissions 310 348 Toll and interconnect 243 248 Other 840 427 Accounts payable and accrued liabilities $ 11,182 $ 11,405 |
Schedule of Cash Flow, Supplemental Disclosures | The following table summarizes T-Mobile’s supplemental cash flow information: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2022 2021 2022 2021 Interest payments, net of amounts capitalized $ 989 $ 913 $ 1,767 $ 1,858 Operating lease payments 1,042 1,263 2,090 2,914 Income tax payments 63 63 63 85 Non-cash investing and financing activities Non-cash beneficial interest obtained in exchange for securitized receivables 990 1,089 2,008 2,470 Change in accounts payable and accrued liabilities for purchases of property and equipment (68) (367) (251) (540) Leased devices transferred from inventory to property and equipment 83 333 212 818 Returned leased devices transferred from property and equipment to inventory (95) (416) (278) (861) Increase in Tower obligations from contract modification — — 1,158 — Operating lease right-of-use assets obtained in exchange for lease obligations 591 1,043 6,566 1,954 Financing lease right-of-use assets obtained in exchange for lease obligations 551 377 849 486 |
Receivables and Related Allow_3
Receivables and Related Allowance for Credit Losses - Equipment Installment Plan Receivables (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) class segment | Dec. 31, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Portfolio segments | segment | 2 | |
Customer classes | class | 2 | |
EIP receivables, gross | $ 8,456 | $ 8,207 |
Unamortized imputed discount | (389) | (378) |
EIP receivables, net of unamortized imputed discount | 8,067 | 7,829 |
Allowance for credit losses | (333) | (252) |
EIP receivables, net of allowance for credit losses and imputed discount | 7,734 | 7,577 |
Equipment installment plan receivables, net of allowance for credit losses and imputed discount | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
EIP receivables, net of allowance for credit losses and imputed discount | 5,129 | 4,748 |
Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
EIP receivables, net of allowance for credit losses and imputed discount | $ 2,605 | $ 2,829 |
EIP Receivables Allowance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Weighted average effective imputed interest rate | 6.10% | 5.60% |
Receivables and Related Allow_4
Receivables and Related Allowance for Credit Losses - Equipment Installment Plan Receivables by Credit Category (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total EIP Receivables, net of unamortized imputed discounts | $ 8,067 | $ 7,829 |
Prime | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in 2022 | 2,196 | |
Originated in 2021 | 2,305 | |
Originated prior to 2021 | 399 | |
Total EIP Receivables, net of unamortized imputed discounts | 4,900 | |
Subprime | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in 2022 | 1,583 | |
Originated in 2021 | 1,394 | |
Originated prior to 2021 | 190 | |
Total EIP Receivables, net of unamortized imputed discounts | 3,167 | |
Current - 30 days past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total EIP Receivables, net of unamortized imputed discounts | 7,905 | |
Current - 30 days past due | Prime | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in 2022 | 2,171 | |
Originated in 2021 | 2,273 | |
Originated prior to 2021 | 393 | |
Total EIP Receivables, net of unamortized imputed discounts | 4,837 | |
Current - 30 days past due | Subprime | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in 2022 | 1,546 | |
Originated in 2021 | 1,341 | |
Originated prior to 2021 | 181 | |
Total EIP Receivables, net of unamortized imputed discounts | 3,068 | |
31 - 60 days past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total EIP Receivables, net of unamortized imputed discounts | 90 | |
31 - 60 days past due | Prime | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in 2022 | 16 | |
Originated in 2021 | 17 | |
Originated prior to 2021 | 3 | |
Total EIP Receivables, net of unamortized imputed discounts | 36 | |
31 - 60 days past due | Subprime | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in 2022 | 24 | |
Originated in 2021 | 27 | |
Originated prior to 2021 | 3 | |
Total EIP Receivables, net of unamortized imputed discounts | 54 | |
61 - 90 days past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total EIP Receivables, net of unamortized imputed discounts | 38 | |
61 - 90 days past due | Prime | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in 2022 | 6 | |
Originated in 2021 | 7 | |
Originated prior to 2021 | 1 | |
Total EIP Receivables, net of unamortized imputed discounts | 14 | |
61 - 90 days past due | Subprime | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in 2022 | 9 | |
Originated in 2021 | 13 | |
Originated prior to 2021 | 2 | |
Total EIP Receivables, net of unamortized imputed discounts | 24 | |
More than 90 days past due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total EIP Receivables, net of unamortized imputed discounts | 34 | |
More than 90 days past due | Prime | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in 2022 | 3 | |
Originated in 2021 | 8 | |
Originated prior to 2021 | 2 | |
Total EIP Receivables, net of unamortized imputed discounts | 13 | |
More than 90 days past due | Subprime | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Originated in 2022 | 4 | |
Originated in 2021 | 13 | |
Originated prior to 2021 | 4 | |
Total EIP Receivables, net of unamortized imputed discounts | $ 21 |
Receivables and Related Allow_5
Receivables and Related Allowance for Credit Losses - Unamortized Imputed Discount and Allowance for Credit Losses for Equipment Installment Plan Receivables (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses and imputed discount, beginning of period | $ 776 | $ 799 |
Bad debt expense | 521 | 154 |
Write-offs, net of recoveries | (410) | (251) |
Change in imputed discount on short-term and long-term EIP receivables | 75 | 91 |
Impact on the imputed discount from sales of EIP receivables | (63) | (73) |
Allowance for credit losses and imputed discount, end of period | 899 | 720 |
Accounts Receivable Allowance | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses and imputed discount, beginning of period | 146 | 194 |
Bad debt expense | 201 | 76 |
Write-offs, net of recoveries | (170) | (147) |
Allowance for credit losses and imputed discount, end of period | 177 | 123 |
EIP Receivables Allowance | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses and imputed discount, beginning of period | 630 | 605 |
Bad debt expense | 320 | 78 |
Write-offs, net of recoveries | (240) | (104) |
Change in imputed discount on short-term and long-term EIP receivables | 75 | 91 |
Impact on the imputed discount from sales of EIP receivables | (63) | (73) |
Allowance for credit losses and imputed discount, end of period | $ 722 | $ 597 |
Sales of Certain Receivables -
Sales of Certain Receivables - Sales of EIP Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Other current assets | $ 1,711 | $ 2,005 |
Other assets | 3,433 | 3,232 |
EIP Securitization Arrangement | ||
Variable Interest Entity [Line Items] | ||
Revolving receivables facility, maximum borrowing capacity | 1,300 | 1,300 |
Other current assets | 369 | 424 |
Other assets | $ 110 | $ 125 |
Sales of Certain Receivables _2
Sales of Certain Receivables - Sales of Service Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Other current assets | $ 1,711 | $ 2,005 |
Other current liabilities | 1,120 | 1,070 |
Variable Interest Entity, Not Primary Beneficiary | Factoring Arrangement | ||
Variable Interest Entity [Line Items] | ||
Revolving receivables facility, maximum borrowing capacity | 950 | |
Revolving receivables facility, outstanding borrowings | 775 | 775 |
Other current assets | 227 | 231 |
Other current liabilities | $ 494 | $ 348 |
Sales of Certain Receivables _3
Sales of Certain Receivables - Sales of Receivables and Continuing Involvement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Other current assets | $ 1,711 | $ 1,711 | $ 2,005 | ||
Other long-term assets | 3,433 | 3,433 | 3,232 | ||
Other current liabilities | 1,120 | 1,120 | 1,070 | ||
Of which: | |||||
Gain (loss) on sale of receivables | (62) | $ 12 | (108) | $ 30 | |
Factoring and EIP Securitization Arrangement | Variable Interest Entity, Primary Beneficiary | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Derecognized net service receivables and EIP receivables | 2,315 | 2,315 | 2,492 | ||
Other current assets | 596 | 596 | 655 | ||
Carrying amounts of deferred purchase price assets | 704 | 704 | 779 | ||
Other long-term assets | 110 | 110 | 125 | ||
Other current liabilities | 494 | 494 | 348 | ||
Net cash proceeds since inception | 1,741 | 1,754 | |||
Of which: | |||||
Change in net cash proceeds during the year-to-date period | (13) | 39 | |||
Net cash proceeds funded by reinvested collections | 1,754 | 1,715 | |||
Gain (loss) on sale of receivables | (61) | $ 12 | (108) | $ 30 | |
Factoring and EIP Securitization Arrangement | Variable Interest Entity, Primary Beneficiary | Other current assets - of which, deferred purchase price | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Carrying amounts of deferred purchase price assets | 594 | 594 | 654 | ||
Factoring and EIP Securitization Arrangement | Variable Interest Entity, Primary Beneficiary | Other long-term assets - of which, deferred purchase price | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Carrying amounts of deferred purchase price assets | $ 110 | $ 110 | $ 125 |
Spectrum License Transactions -
Spectrum License Transactions - Spectrum License Activity (Details) - Licensing Agreements $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Indefinite-lived Intangible Assets [Roll Forward] | |
Beginning balance | $ 92,606 |
Spectrum license acquisitions | 3,026 |
Ending balance | $ 95,632 |
Spectrum License Transactions_2
Spectrum License Transactions - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jul. 01, 2020 USD ($) | Feb. 28, 2022 USD ($) | Jan. 31, 2022 USD ($) license | Sep. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Goodwill [Line Items] | ||||||||
Purchase of spectrum licenses | $ 116 | $ 8 | $ 2,959 | $ 8,930 | ||||
DISH | T-Mobile and Sprint | Spectrum Licenses | ||||||||
Goodwill [Line Items] | ||||||||
Payments for asset acquisition | $ 3,600 | |||||||
Fee liability for failure to deliver the purchase price | $ 72 | |||||||
Licensing Agreements | Auction 110 | ||||||||
Goodwill [Line Items] | ||||||||
Number of licenses | license | 199 | |||||||
Aggregate purchase price | $ 2,900 | |||||||
Purchase of spectrum licenses | $ 2,800 | $ 100 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Derivative [Line Items] | |||||
Accumulated other comprehensive loss | $ 1,295 | $ 1,295 | $ 1,365 | ||
Level 3 | Fair Value | |||||
Derivative [Line Items] | |||||
Carrying amounts of deferred purchase price assets | 704 | 704 | 779 | ||
Interest Expense | |||||
Derivative [Line Items] | |||||
Amount amortized from AOCI into interest expense | 50 | $ 47 | 100 | $ 93 | |
Amount expected to be amortized from AOCI into interest expense over next 12 months | 211 | ||||
Interest Rate Contract | |||||
Derivative [Line Items] | |||||
Accumulated other comprehensive loss | $ 1,400 | $ 1,400 | $ 1,500 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Fair Values of Long-term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Vendor Financing Arrangement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Term loans | $ 35 | $ 47 |
Carrying Amount | Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 29,629 | 30,309 |
Carrying Amount | Senior Notes | Third Party | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 39,830 | 40,098 |
Carrying Amount | Senior Notes | Affiliates | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 1,495 | 3,739 |
Fair Value | Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 27,927 | 32,093 |
Fair Value | Senior Notes | Third Party | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 35,066 | 42,393 |
Fair Value | Senior Notes | Affiliates | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 1,441 | $ 3,844 |
Debt - Debt Balances and Activi
Debt - Debt Balances and Activity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Balances and Activity [Roll Forward] | ||||
Long-term debt, beginning balance | $ 67,076,000,000 | |||
Note Redemptions | $ (264,000,000) | (264,000,000) | ||
Repayments | (1,381,000,000) | $ (3,150,000,000) | (3,013,000,000) | $ (5,369,000,000) |
Long-term debt, ending balance | 66,552,000,000 | 66,552,000,000 | ||
Total Debt | ||||
Debt Balances and Activity [Roll Forward] | ||||
Total debt, beginning balance | 74,193,000,000 | |||
Note Redemptions | (2,750,000,000) | (2,750,000,000) | ||
Repayments | (264,000,000) | |||
Reclassifications | 0 | |||
Other | (190,000,000) | |||
Total debt, ending balance | 70,989,000,000 | 70,989,000,000 | ||
Third Party | Total Debt | ||||
Debt Balances and Activity [Roll Forward] | ||||
Total debt to third parties, beginning balance | 70,454,000,000 | |||
Note Redemptions | (500,000,000) | (500,000,000) | ||
Repayments | (264,000,000) | |||
Reclassifications | 0 | |||
Other | (196,000,000) | |||
Total debt to third parties, ending balance | 69,494,000,000 | 69,494,000,000 | ||
Short-term Debt | Affiliates | ||||
Debt Balances and Activity [Roll Forward] | ||||
Short-term debt to affiliates, beginning balance | 2,245,000,000 | |||
Note Redemptions | (2,250,000,000) | (2,250,000,000) | ||
Repayments | 0 | |||
Reclassifications | 0 | |||
Other | 5,000,000 | |||
Short-term debt to affiliates, ending balance | 0 | 0 | ||
Short-term Debt | Third Party | ||||
Debt Balances and Activity [Roll Forward] | ||||
Short-term debt, beginning balance | 3,378,000,000 | |||
Note Redemptions | (500,000,000) | (500,000,000) | ||
Repayments | (264,000,000) | |||
Reclassifications | 356,000,000 | |||
Other | (28,000,000) | |||
Short-term debt, ending balance | 2,942,000,000 | 2,942,000,000 | ||
Long-term debt | Affiliates | ||||
Debt Balances and Activity [Roll Forward] | ||||
Long-term debt to affiliates, beginning balance | 1,494,000,000 | |||
Note Redemptions | 0 | 0 | ||
Repayments | 0 | |||
Reclassifications | 0 | |||
Other | 1,000,000 | |||
Long-term debt to affiliates, ending balance | 1,495,000,000 | 1,495,000,000 | ||
Long-term debt | Third Party | ||||
Debt Balances and Activity [Roll Forward] | ||||
Long-term debt, beginning balance | 67,076,000,000 | |||
Note Redemptions | 0 | 0 | ||
Repayments | 0 | |||
Reclassifications | (356,000,000) | |||
Other | (168,000,000) | |||
Long-term debt, ending balance | $ 66,552,000,000 | $ 66,552,000,000 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Billions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Disclosure [Abstract] | ||||
Effective interest rate | 3.80% | 4.10% | 3.90% | 4.20% |
Weighted-average debt outstanding during period | $ 71.4 | $ 75.5 | $ 72.6 | $ 74.5 |
Debt - Debt Instrument Redempti
Debt - Debt Instrument Redemption (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |
Principal Amount | $ 264,000,000 |
Senior Notes | Affiliates | |
Debt Instrument [Line Items] | |
Principal Amount | $ 2,750,000,000 |
4.000% Senior Notes due 2022 | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 4% |
4.000% Senior Notes due 2022 | Senior Notes | |
Debt Instrument [Line Items] | |
Principal Amount | $ 500,000,000 |
Redemption Price (as a percent) | 100% |
4.000% Senior Notes to affiliates due 2022 | Affiliates | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 4% |
4.000% Senior Notes to affiliates due 2022 | Senior Notes | |
Debt Instrument [Line Items] | |
Redemption Price (as a percent) | 100% |
4.000% Senior Notes to affiliates due 2022 | Senior Notes | Affiliates | |
Debt Instrument [Line Items] | |
Principal Amount | $ 1,000,000,000 |
5.375% Senior Notes to affiliates due 2022 | Affiliates | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 5.375% |
5.375% Senior Notes to affiliates due 2022 | Senior Notes | Affiliates | |
Debt Instrument [Line Items] | |
Principal Amount | $ 1,250,000,000 |
4.738% Series 2018-1 A-1 Notes due 2025 | Senior Notes | |
Debt Instrument [Line Items] | |
Principal Amount | $ 263,000,000 |
Interest rate, stated percentage | 4.738% |
Other debt | |
Debt Instrument [Line Items] | |
Principal Amount | $ 1,000,000 |
Tower Obligations - Narrative (
Tower Obligations - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jan. 03, 2022 USD ($) | Apr. 01, 2020 USD ($) | Mar. 31, 2020 USD ($) tower_site | Jun. 30, 2022 USD ($) | Dec. 31, 2012 USD ($) tower_site | |
Sale Leaseback Transaction [Line Items] | |||||
Tower obligation payments, due next year | $ 418 | ||||
Tower obligation payments, due within two and three years | 837 | ||||
Tower obligation payment, due within four and five years | 778 | ||||
Tower obligation payments due thereafter | $ 4,700 | ||||
Sprint | |||||
Sale Leaseback Transaction [Line Items] | |||||
Adjustment, other long-term liabilities | $ 1,700 | ||||
Minimum | |||||
Sale Leaseback Transaction [Line Items] | |||||
Lessee leasing arrangements, operating leases, term of contract (years) | 5 years | ||||
Maximum | |||||
Sale Leaseback Transaction [Line Items] | |||||
Lessee leasing arrangements, operating leases, term of contract (years) | 15 years | ||||
Crown Castle International Corp. | |||||
Sale Leaseback Transaction [Line Items] | |||||
Increase to deferred tax liabilities | $ 1,200 | ||||
Tower Transaction | |||||
Sale Leaseback Transaction [Line Items] | |||||
Lessee leasing arrangements, operating leases, term of contract (years) | 12 years | ||||
Sale leaseback transaction, fixed-price purchase options | $ 2,000 | ||||
Interest rate on tower obligations | 11.60% | ||||
Tower Transaction | Tower | |||||
Sale Leaseback Transaction [Line Items] | |||||
Useful life (in years) | 20 years | ||||
Tower Transaction | Minimum | |||||
Sale Leaseback Transaction [Line Items] | |||||
Lessee leasing arrangements, operating leases, term of contract (years) | 23 years | ||||
Tower Transaction | Maximum | |||||
Sale Leaseback Transaction [Line Items] | |||||
Lessee leasing arrangements, operating leases, term of contract (years) | 37 years | ||||
Tower Transaction | Crown Castle International Corp. | |||||
Sale Leaseback Transaction [Line Items] | |||||
Property subject to failed sale leaseback transaction, number of units | tower_site | 6,400 | 6,200 | |||
Remaining term of lease | 17 years | ||||
Fixed-price purchase option on leased or subleased sites | $ 2,300 | ||||
Fixed-price purchase option on lease or subleased sites, exercisable period | 1 year | ||||
Days prior to expiration of agreement | 120 days | ||||
Property and equipment | 2,800 | ||||
Tower obligations | $ 1,100 | ||||
CCI Tower Lease Arrangement | Crown Castle International Corp. | |||||
Sale Leaseback Transaction [Line Items] | |||||
Interest rate on tower obligations | 5.30% |
Tower Obligations - Sale Leaseb
Tower Obligations - Sale Leaseback Transaction (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Property and equipment, net | ||
Sale Leaseback Transaction [Line Items] | ||
Sale-leasebacks | $ 2,464 | $ 2,548 |
Tower obligations | ||
Sale Leaseback Transaction [Line Items] | ||
Sale-leasebacks | 4,006 | 2,806 |
Other long-term liabilities | ||
Sale Leaseback Transaction [Line Items] | ||
Sale-leasebacks | $ 554 | $ 1,712 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 19,701 | $ 19,950 | $ 39,821 | $ 39,709 |
Postpaid phone revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,407 | 9,667 | 20,638 | 19,150 |
Postpaid other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,038 | 825 | 2,008 | 1,645 |
Total postpaid service revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11,445 | 10,492 | 22,646 | 20,795 |
Equipment revenues from the lease of mobile communication devices | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 386 | 914 | 873 | 1,955 |
Wireless service revenues | Sprint | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 143 | $ 187 | $ 289 | $ 384 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract Assets | $ 294 | $ 294 | $ 286 | ||
Contract Liabilities | 756 | 756 | 763 | ||
Change in contract assets included in other current assets | 8 | ||||
Change in contracts liabilities included in deferred revenue | (7) | ||||
Current portion of contract assets | 227 | 227 | $ 219 | ||
Amounts included in the beginning of year contract liability balance | $ 31 | $ 41 | $ 685 | $ 724 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Remaining Performance Obligations, Branded Postpaid Contracts (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 1,100 |
Remaining performance obligation, expected timing of satisfaction, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 2,300 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 4,700 |
Remaining performance obligation, expected timing of satisfaction, period | |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining contract duration (in years) | 1 year |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining contract duration (in years) | 8 years |
Total postpaid service revenues | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 700 |
Remaining contract duration (in years) | 24 months |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Contract Costs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Capitalized Contract Cost [Abstract] | |||||
Deferred incremental costs to obtain contracts | $ 1,700,000,000 | $ 1,700,000,000 | $ 1,500,000,000 | ||
Average amortization period, deferred contract costs (in months) | 24 months | 24 months | |||
Amortization of deferred costs | $ 358,000,000 | $ 264,000,000 | $ 682,000,000 | $ 512,000,000 | |
Impairment losses recognized on deferred contract cost assets | $ 0 | $ 0 | $ 0 | $ 0 |
(Loss) Earnings Per Share - Com
(Loss) Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income | $ (108) | $ 978 | $ 605 | $ 1,911 |
Weighted average shares outstanding - basic (in shares) | 1,253,932,986 | 1,247,563,331 | 1,252,228,959 | 1,245,552,847 |
Effect of dilutive securities: | ||||
Outstanding stock options and unvested stock awards (in shares) | 0 | 6,154,791 | 4,644,868 | 8,711,617 |
Weighted average shares outstanding - diluted (in shares) | 1,253,932,986 | 1,253,718,122 | 1,256,873,827 | 1,254,264,464 |
Basic earnings per share: | ||||
(Loss) earnings per share - basic (in USD per share) | $ (0.09) | $ 0.78 | $ 0.48 | $ 1.53 |
(Loss) earnings per share - diluted (in USD per share) | $ (0.09) | $ 0.78 | $ 0.48 | $ 1.52 |
Outstanding stock options and unvested stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities (in shares) | 3,921,770 | 50,873 | 73,885 | 26,646 |
SoftBank contingent consideration | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities (in shares) | 48,751,557 | 48,751,557 | 48,751,557 | 48,751,557 |
(Loss) Earnings Per Share - Nar
(Loss) Earnings Per Share - Narrative (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
SoftBank contingent consideration | ||||
Class of Stock [Line Items] | ||||
Potentially dilutive securities (in shares) | 48,751,557 | 48,751,557 | 48,751,557 | 48,751,557 |
Mandatory Convertible Preferred Stock Series A | ||||
Class of Stock [Line Items] | ||||
Preferred shares authorized (in shares) | 100,000,000 | 100,000,000 | ||
Preferred stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 | ||
Preferred shares outstanding (in shares) | 0 | 0 | 0 | 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jan. 03, 2022 USD ($) renewal_Option | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | |||||
Operating lease, weighted average remaining lease term | 10 years | 10 years | |||
Operating lease, weighted average discount rate, percent | 3.90% | 3.90% | |||
Interest payments for financing leases | $ 16 | $ 17 | $ 31 | $ 36 | |
Additional operating leases not yet commenced, payments due | $ 214 | $ 214 | |||
Crown Agreement | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, operating lease, renewal term (years) | 5 years | ||||
Lessee, operating lease, number of renewal options | renewal_Option | 3 | ||||
Right-of-use asset obtained in exchange for operating and finance lease liabilities | $ 5,300 | ||||
Increase to deferred tax liabilities | $ 1,300 | ||||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee leasing arrangements, operating leases, term of contract (years) | 5 years | 5 years | |||
Lessee, operating lease, renewal term (years) | 5 years | 5 years | |||
Lessee leasing arrangements, finance leases, term of contract | 3 years | 3 years | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee leasing arrangements, operating leases, term of contract (years) | 15 years | 15 years | |||
Lessee, operating lease, renewal term (years) | 50 years | 50 years | |||
Lessee leasing arrangements, finance leases, term of contract | 5 years | 5 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease expense | $ 1,985 | $ 1,533 | $ 3,733 | $ 2,924 |
Financing lease expense: | ||||
Amortization of right-of-use assets | 194 | 175 | 379 | 348 |
Interest on lease liabilities | 16 | 16 | 31 | 36 |
Total financing lease expense | 210 | 191 | 410 | 384 |
Variable lease expense | 122 | 90 | 249 | 185 |
Total lease expense | $ 2,317 | $ 1,814 | $ 4,392 | $ 3,493 |
Leases - Maturity of Operating
Leases - Maturity of Operating and Finance Lease Liabilities (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Operating Leases | |
2023 | $ 4,437 |
2024 | 4,482 |
2025 | 4,044 |
2026 | 3,606 |
2027 | 3,311 |
Thereafter | 22,819 |
Total lease payments | 42,699 |
Less: imputed interest | 8,435 |
Total | 34,264 |
Finance Leases | |
2023 | 1,259 |
2024 | 951 |
2025 | 569 |
2026 | 76 |
2027 | 27 |
Thereafter | 17 |
Total lease payments | 2,899 |
Less: imputed interest | 82 |
Total | $ 2,817 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jul. 22, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | |
Loss Contingencies [Line Items] | ||||
Purchase commitment, due next year | $ 4,400 | $ 4,400 | ||
Purchase commitment, due within two and three years | 5,300 | 5,300 | ||
Purchase commitment, due within four and five years | 2,500 | 2,500 | ||
Purchase commitment, due thereafter | 2,900 | 2,900 | ||
Lease and service credit commitment, due next year | 330 | 330 | ||
Lease and service credit commitment, due within two and three years | 599 | 599 | ||
Lease and service credit commitment, due within four and five years | 615 | 615 | ||
Lease and service credit commitment, due thereafter | 4,700 | 4,700 | ||
Aggregate incremental expense | 150 | 150 | ||
Proceeds from legal settlements | $ 220 | |||
Selling, General and Administrative Expenses | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlement expense | $ 400 | $ 400 | ||
Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Proposed litigation settlement | $ 350 |
Restructuring Costs - Restructu
Restructuring Costs - Restructuring Plan Expenses Incurred (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 276 | $ 413 |
Incurred to Date | 1,688 | 1,688 |
Contract termination costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 56 | 56 |
Incurred to Date | 248 | 248 |
Severance costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 29 | 33 |
Incurred to Date | 435 | 435 |
Network decommissioning | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 191 | 324 |
Incurred to Date | $ 1,005 | $ 1,005 |
Restructuring Costs - Narrative
Restructuring Costs - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | ||||
Amortization of the right-of-use assets on lease contracts | $ 747 | $ 261 | $ 1,200 | $ 384 |
Restructuring term | 2 years |
Restructuring Costs - Activity
Restructuring Costs - Activity Related to Expenses Incurred and Cash Payments Made (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | $ 86 | |
Expenses Incurred | $ 276 | 413 |
Cash Payments | (133) | |
Adjustments for Non-Cash Items | (70) | |
Restructuring Reserve, Ending Balance | 296 | 296 |
Contract termination costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 14 | |
Expenses Incurred | 56 | 56 |
Cash Payments | (9) | |
Adjustments for Non-Cash Items | 0 | |
Restructuring Reserve, Ending Balance | 61 | 61 |
Severance costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 1 | |
Expenses Incurred | 29 | 33 |
Cash Payments | (7) | |
Adjustments for Non-Cash Items | 0 | |
Restructuring Reserve, Ending Balance | 27 | 27 |
Network decommissioning | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, Beginning Balance | 71 | |
Expenses Incurred | 191 | 324 |
Cash Payments | (117) | |
Adjustments for Non-Cash Items | (70) | |
Restructuring Reserve, Ending Balance | $ 208 | $ 208 |
Additional Financial Informat_3
Additional Financial Information - Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Supplemental Financial Statement Elements [Abstract] | ||
Accounts payable | $ 6,292 | $ 6,499 |
Payroll and related benefits | 1,209 | 1,343 |
Property and other taxes, including payroll | 1,580 | 1,830 |
Accrued interest | 708 | 710 |
Commissions | 310 | 348 |
Toll and interconnect | 243 | 248 |
Other | 840 | 427 |
Accounts payable and accrued liabilities | 11,182 | 11,405 |
Accounts Payable and Accrued Liabilities | ||
Accounts Payable and Accrued Liabilities [Line Items] | ||
Outstanding checks | $ 273 | $ 378 |
Additional Financial Informat_4
Additional Financial Information - Supplemental Consolidated Statements of Cash Flows Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Supplemental Financial Statement Elements [Abstract] | ||||
Interest payments, net of amounts capitalized | $ 989 | $ 913 | $ 1,767 | $ 1,858 |
Operating lease payments | 1,042 | 1,263 | 2,090 | 2,914 |
Income tax payments | 63 | 63 | 63 | 85 |
Non-cash investing and financing activities | ||||
Non-cash beneficial interest obtained in exchange for securitized receivables | 990 | 1,089 | 2,008 | 2,470 |
Change in accounts payable and accrued liabilities for purchases of property and equipment | (68) | (367) | (251) | (540) |
Leased devices transferred from inventory to property and equipment | 83 | 333 | 212 | 818 |
Returned leased devices transferred from property and equipment to inventory | (95) | (416) | (278) | (861) |
Increase in Tower obligations from contract modification | 0 | 0 | 1,158 | 0 |
Operating lease right-of-use assets obtained in exchange for lease obligations | 591 | 1,043 | 6,566 | 1,954 |
Financing lease right-of-use assets obtained in exchange for lease obligations | $ 551 | $ 377 | $ 849 | $ 486 |
Additional Financial Informat_5
Additional Financial Information - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Asset Acquisition [Line Items] | ||||
Non-cash impairment | $ 477,000,000 | $ 0 | $ 477,000,000 | $ 0 |
Sprint | ||||
Asset Acquisition [Line Items] | ||||
Non-cash impairment | 477,000,000 | $ 0 | 477,000,000 | $ 0 |
Wireline property and equipment | 258,000,000 | 258,000,000 | ||
Operating lease, impairment loss | 212,000,000 | 212,000,000 | ||
Impairment of other intangible assets | 7,000,000 | 7,000,000 | ||
Long-lived assets | $ 675,000,000 | $ 675,000,000 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Selling, General and Administrative Expenses | ||
Subsequent Event [Line Items] | ||
Litigation settlement expense | $ 400 | $ 400 |