Severance, Exit Costs and Asset Impairments

6 Months Ended

Sep. 30, 2014

Restructuring and Related Activities [Abstract]

Severance, Exit Costs and Asset Impairments [Text Block]


Note 10.	Severance and Exit Costs

For the Successor three and six-month periods ended September 30, 2014, we recognized lease exit costs primarily associated with call center and retail store closures as well as our network modernization plan and severance costs associated with reductions in our work force. In addition, we recognized 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 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 $75 million to $175 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			September 30, 2014
	(in millions)
Lease exit costs	$	650	$	13	⁽¹⁾	$	(220	)	$	443
Severance costs	197		269		⁽²⁾	(177		)	289
Access exit costs	124		29		⁽³⁾	(60		)	93
	$	971	$	311		$	(457	)	$	825

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(1)	For the Successor three and six-month periods ended September 30, 2014, we recognized costs of $10 million and $13 million ( Wireless only).


(2)	For the Successor three and six-month periods ended September 30, 2014, we recognized costs of $263 million ($228 million Wireless, $35 million Wireline) and $269 million ($233 million Wireless, $36 million Wireline), respectively.


(3)	For the Successor three and six-month periods ended September 30, 2014, we recognized costs of $11 million ($9 million Wireless, $2 million Wireline) and $29 million ($24 million Wireless, $5 million Wireline), respectively.

- 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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