
Note 10.	Severance, Exit Costs and Asset Impairments

Severance and Exit Costs Activity

For the three and nine-month periods ended September 30, 2013 as well as for the 191-day period ended July 10, 2013, we recognized lease exit costs associated with the decommissioning of the Nextel Platform. For the 10-day period ended July 10, 2013, we recognized a benefit in lease exit costs due to the changes in estimates for lease exit costs previously recognized.

For the three and nine-month periods ended September 30, 2013 as well as for the 10-day and 191-day periods ended July 10, 2013, we also recognized severance costs associated with reductions in force and access exit costs 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.

As a result of Network Vision and the completion of the Significant Transactions (see Note 3. Significant Transactions), we expect to incur additional 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. These additional exit costs are expected to range between approximately $275 million to $375 million, of which the majority are expected to be incurred through first quarter 2016.

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:



	Predecessor
	December 31, 2012		Purchase Price Adjustments		Net Expense			Cash Payments and Other			July 10, 2013
	(in millions)
Lease exit costs	$	190	$	131	$	478	⁽¹⁾	$	(33	)	$	766
Severance costs	11		—		58		⁽²⁾	(15		)	54
Access exit costs	43		—		151		⁽³⁾	(5		)	189
	$	244	$	131	$	687		$	(53	)	$	1,009

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(1) For the 10-day and 191-day periods ended July 10, 2013, we recognized a benefit of $37 million due to the changes in estimates for lease exit costs previously recognized and net costs of $478 million (solely attributable to our Wireless segment), respectively.

(2) For the 10-day and 191-day periods ended July 10, 2013, we recognized $32 million (solely attributable to our Wireless segment) and $58 million ($55 million Wireless, and $3 million was Wireline), respectively.

(3) For the 10-day period ended July 10, 2013, we did not record any access exit costs. Of the $151 million ($133 million Wireless; $18 million Wireline) recognized for the 191-day period ended July 10, 2013, $35 million was recognized as "Cost of services and products" and $116 million was recognized in "Severance, exit costs and asset impairments."



	Successor
	July 11, 2013			Net Expense			Cash Payments and Other			September 30, 2013
	(in millions)
Lease exit costs	$	772	⁽⁴⁾	$	45	⁽⁵⁾	$	46		$	863
Severance costs	54			41		⁽⁶⁾	(17		)	78
Access exit costs	189			24		⁽⁷⁾	(52		)	161
	$	1,015		$	110		$	(23	)	$	1,102

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(4) The July 11, 2013 opening balance takes into account purchase price adjustments as it relates to the SoftBank Merger.

(5) For the three- and nine-month periods ended September 30, 2013, we recognized costs of $45 million ($43 million Wireless, $2 million Wireline).

(6) For the three- and nine-month periods ended September 30, 2013, we recognized costs of $41 million ($33 million Wireless, $8 million Wireline).

(7) For the three- and nine-month periods ended September 30, 2013, $7 million (solely attributable to Wireline) was recognized as "Cost of services and products" and $17 million (solely attributable to Wireless) was recognized in "Severance, exit costs and assets impairments."

Asset Impairments

There were no asset impairments for the three and nine-month periods ended September 30, 2013 or for the 10-day and 191-day period ended July 10, 2013.