Severance, Exit Costs and Asset Impairments

3 Months Ended

Jun. 30, 2014

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 Successor three-month period ended June 30, 2014, we recognized lease exit costs primarily associated with call center and retail store closures. For the Predecessor three-month period ended June 30, 2013, we recognized lease exit costs associated with the decommissioning of the Nextel platform 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. For the Successor three-month period ended June 30, 2014 and Predecessor three-month period ended June 30, 2013, we also recognized severance costs associated with reductions in our work force.

As a result of our network modernization 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 further evaluation of the future use of Clearwire cell sites, among other initiatives. These additional exit costs are expected to range between approximately $150 million to $250 million, of which the majority are expected to be incurred by March 31, 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:



	Successor
	March 31, 2014		Net Expense			Cash Payments and Other			June 30, 2014
	(in millions)
Lease exit costs	$	650	$	3	⁽¹⁾	$	(135	)	$	518
Severance costs	197		6		⁽²⁾	(86		)	117
Access exit costs	124		18		⁽³⁾	(39		)	103
	$	971	$	27		$	(260	)	$	738

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(1)	For the Successor three-month period ended June 30, 2014, we recognized costs of $3 million (solely attributable to Wireless).


(2)	For the Successor three-month period ended June 30, 2014, we recognized costs of $6 million ($5 million Wireless, $1 million Wireline).


(3)	For the Successor three-month period ended June 30, 2014, we recognized costs of $18 million ($15 million Wireless, $3 million Wireline).

- 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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