Severance and Exit Costs

3 Months Ended

Jun. 30, 2016

Restructuring and Related Activities [Abstract]


Note 9.	Severance and Exit Costs

Severance and exit costs consist of lease exit costs primarily associated with tower and cell sites, 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, and severance costs associated with reductions in our work force.

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:



	March 31, 2016		Net Expense			Cash Payments and Other			June 30, 2016
	(in millions)
Lease exit costs	$	338	$	10	⁽¹⁾	$	(38	)	$	310
Severance costs	150		4		⁽²⁾	(60		)	94
Access exit costs	37		4		⁽³⁾	(9		)	32
	$	525	$	18		$	(107	)	$	436

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(1)	For the three-month period ended June 30, 2016, we recognized costs of $10 million (Wireless only).


(2)	For the three-month period ended June 30, 2016, we recognized costs of $4 million (Wireless only).


(3)	For the three-month period ended June 30, 2016, $2 million (solely attributable to Wireline) was recognized as "Cost of services" and $2 million (solely attributable to Wireless) was recognized as "Severance and exit costs."

We continually refine our network strategy and evaluate other potential network initiatives to improve the overall performance of our network. Additionally, a major cost reduction initiative is underway, which may include headcount reductions, among other actions, to reduce operating expenses and improve our operating cash flows. As a result of these ongoing activities, we may incur future material charges associated with lease and access exit costs, severance, asset impairments, and accelerated depreciation, among others.