Severance, Exit Costs and Asset Impairments

6 Months Ended

Jun. 30, 2013

Restructuring and Related Activities [Abstract]

Severance, Exit Costs and Asset Impairments [Text Block]


Note 10.	Severance, Exit Costs and Asset Impairments

Severance and Exit Costs Activity

For the three and six-month periods ended June 30, 2013, we recognized severance and lease exit costs of $516 million (solely attributable to our Wireless segment) and $541 million ($538 million Wireless, $3 million Wireline), respectively, primarily related to lease exit costs associated with the shut-down of the Nextel platform on June 30, 2013.

In addition, for the three and six-month periods ended June 30, 2013, we recognized costs of $144 million ($129 million Wireless; $15 million Wireline) and $151 million ($133 million Wireless; $18 million Wireline), respectively, related to payments that will continue to be made under our backhaul access contracts for which we will no longer be receiving any economic benefit. Of the $144 million and $151 million for the three and six-month periods ended June 30, 2013, $28 million and $35 million, respectively, were in "Cost of services and products" and $116 million (solely attributable to Wireless) was recognized in the second quarter in "Severance, exit costs and asset impairments".

As a result of management's network modernization plan, and the completion of the Significant Transactions (see Note 3. Significant Transactions), we expect to incur additional severance and exit costs in the future related to the transition of our existing backhaul architecture to a replacement technology for our network and the efforts associated with the integration of our Significant Transactions, such as the evaluation of future use of the Clearwire 4G broadband network, among other initiatives. The Company is still in the process of determining an estimate for these costs.

The following provides the activity in the severance and exit costs liability included in "Accounts payable", "Accrued expenses and other current liabilities" and "Other liabilities" within the consolidated balance sheets:



			2013 Activity
	December 31, 2012		Net Expense		Cash Payments and Other			June 30, 2013
	(in millions)
Lease exit costs	$	190	$	515	$	(32	)	$	673
Severance costs	11		26		(15		)	22
Access exit costs	43		151		(5		)	189
	$	244	$	692	$	(52	)	$	884

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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