UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

or

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from    to

Commission File Number: 1-33409

T-MOBILE US, INC.

(Exact name of registrant as specified in its charter)

Delaware	20-0836269
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

12920 SE 38th Street

Bellevue, Washington

(Address of principal executive offices)

98006-1350

(Zip Code)

(425)	378-4000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.00001 per share	TMUS	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer     ☒                        Accelerated filer             ☐

Non-accelerated filer     ☐                        Smaller reporting company        ☐

Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).        Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Shares Outstanding as of October 23, 2019
Common Stock, par value $0.00001 per share	855,574,798

T-Mobile US, Inc.

Form 10-Q

For the Quarter Ended September 30, 2019

Table of Contents

PART I. FINANCIAL INFORMATION
	Item 1.	Financial Statements	3
		Condensed Consolidated Balance Sheets	3
		Condensed Consolidated Statements of Comprehensive Income	4
		Condensed Consolidated Statements of Cash Flows	5
		Consolidated Statement of Stockholders’ Equity	6
		Notes to the Condensed Consolidated Financial Statements	9
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	40
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	64
	Item 4.	Controls and Procedures	64
PART II. OTHER INFORMATION
	Item 1.	Legal Proceedings	65
	Item 1A.	Risk Factors	65
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	70
	Item 3.	Defaults Upon Senior Securities	70
	Item 4.	Mine Safety Disclosures	70
	Item 5.	Other Information	70
	Item 6.	Exhibits	71
		SIGNATURE	72

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

T-Mobile US, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(in millions, except share and per share amounts)	September 30, 2019			December 31, 2018
Assets
Current assets
Cash and cash equivalents	$	1,653		$	1,203
Accounts receivable, net of allowances of $61 and $67	1,822			1,769
Equipment installment plan receivables, net	2,425			2,538
Accounts receivable from affiliates	20			11
Inventory	801			1,084
Other current assets	1,737			1,676
Total current assets	8,458			8,281
Property and equipment, net	22,098			23,359
Operating lease right-of-use assets	10,914			—
Financing lease right-of-use assets	2,855			—
Goodwill	1,930			1,901
Spectrum licenses	36,442			35,559
Other intangible assets, net	144			198
Equipment installment plan receivables due after one year, net	1,469			1,547
Other assets	1,799			1,623
Total assets	$	86,109		$	72,468
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued liabilities	$	6,406		$	7,741
Payables to affiliates	252			200
Short-term debt	475			841
Deferred revenue	608			698
Short-term operating lease liabilities	2,232			—
Short-term financing lease liabilities	1,013			—
Other current liabilities	1,883			787
Total current liabilities	12,869			10,267
Long-term debt	10,956			12,124
Long-term debt to affiliates	13,986			14,582
Tower obligations	2,241			2,557
Deferred tax liabilities	5,296			4,472
Operating lease liabilities	10,614			—
Financing lease liabilities	1,440			—
Deferred rent expense	—			2,781
Other long-term liabilities	936			967
Total long-term liabilities	45,469			37,483
Commitments and contingencies (Note 12)
Stockholders' equity
Common Stock, par value $0.00001 per share, 1,000,000,000 shares authorized; 857,072,063 and 851,675,119 shares issued, 855,557,671 and 850,180,317 shares outstanding	—			—
Additional paid-in capital	38,433			38,010
Treasury stock, at cost, 1,514,392 and 1,494,802 shares issued	(8		)	(6		)
Accumulated other comprehensive loss	(1,070		)	(332		)
Accumulated deficit	(9,584		)	(12,954		)
Total stockholders' equity	27,771			24,718
Total liabilities and stockholders' equity	$	86,109		$	72,468

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

T-Mobile US, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions, except share and per share amounts)	2019			2018			2019			2018
Revenues
Branded postpaid revenues	$	5,746		$	5,244		$	16,852		$	15,478
Branded prepaid revenues	2,385			2,395			7,150			7,199
Wholesale revenues	321			338			938			879
Roaming and other service revenues	131			89			346			247
Total service revenues	8,583			8,066			25,286			23,803
Equipment revenues	2,186			2,391			6,965			7,069
Other revenues	292			382			869			993
Total revenues	11,061			10,839			33,120			31,865
Operating expenses
Cost of services, exclusive of depreciation and amortization shown separately below	1,733			1,586			4,928			4,705
Cost of equipment sales, exclusive of depreciation and amortization shown separately below	2,704			2,862			8,381			8,479
Selling, general and administrative	3,498			3,314			10,483			9,663
Depreciation and amortization	1,655			1,637			4,840			4,846
Total operating expense	9,590			9,399			28,632			27,693
Operating income	1,471			1,440			4,488			4,172
Other income (expense)
Interest expense	(184		)	(194		)	(545		)	(641		)
Interest expense to affiliates	(100		)	(124		)	(310		)	(418		)
Interest income	5			5			17			17
Other income (expense), net	3			3			(12		)	(51		)
Total other expense, net	(276		)	(310		)	(850		)	(1,093		)
Income before income taxes	1,195			1,130			3,638			3,079
Income tax expense	(325		)	(335		)	(921		)	(831		)
Net income	$	870		$	795		$	2,717		$	2,248
Net income	$	870		$	795		$	2,717		$	2,248
Other comprehensive loss, net of tax
Unrealized loss on cash flow hedges, net of tax effect of $88, $0, $256, and $0	(257		)	—			(738		)	—
Other comprehensive loss	(257		)	—			(738		)	—
Total comprehensive income	$	613		$	795		$	1,979		$	2,248
Earnings per share
Basic	$	1.02		$	0.94		$	3.18		$	2.65
Diluted	$	1.01		$	0.93		$	3.15		$	2.62
Weighted average shares outstanding
Basic	854,578,241			847,087,120			853,391,370			849,960,290
Diluted	862,690,751			853,852,764			862,854,654			858,248,568

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

T-Mobile US, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2019			2018			2019			2018
Operating activities
Net income	$	870		$	795		$	2,717		$	2,248
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	1,655			1,637			4,840			4,846
Stock-based compensation expense	126			115			366			324
Deferred income tax expense	294			284			849			762
Bad debt expense	74			80			218			209
Losses from sales of receivables	28			48			91			127
Deferred rent expense	—			10			—			21
Losses on redemption of debt	—			—			19			122
Changes in operating assets and liabilities
Accounts receivable	(745		)	(1,238		)	(2,693		)	(3,247		)
Equipment installment plan receivables	(78		)	(335		)	(478		)	(843		)
Inventories	(36		)	(115		)	(139		)	43
Operating lease right-of-use assets	491			—			1,395			—
Other current and long-term assets	(118		)	(193		)	(288		)	(309		)
Accounts payable and accrued liabilities	(395		)	(265		)	(339		)	(1,372		)
Short and long-term operating lease liabilities	(549		)	—			(1,592		)	—
Other current and long-term liabilities	42			39			136			(21		)
Other, net	89			52			185			35
Net cash provided by operating activities	1,748			914			5,287			2,945
Investing activities
Purchases of property and equipment, including capitalized interest of $118 and $101 and $361 and $246	(1,514		)	(1,362		)	(5,234		)	(4,357		)
Purchases of spectrum licenses and other intangible assets, including deposits	(13		)	(22		)	(863		)	(101		)
Proceeds related to beneficial interests in securitization transactions	900			1,338			2,896			3,956
Acquisition of companies, net of cash acquired	(31		)	—			(31		)	(338		)
Other, net	1			4			(6		)	30
Net cash used in investing activities	(657		)	(42		)	(3,238		)	(810		)
Financing activities
Proceeds from issuance of long-term debt	—			—			—			2,494
Payments of consent fees related to long-term debt	—			—			—			(38		)
Proceeds from borrowing on revolving credit facility	575			1,810			2,340			6,050
Repayments of revolving credit facility	(575		)	(2,130		)	(2,340		)	(6,050		)
Repayments of financing lease obligations	(235		)	(181		)	(550		)	(508		)
Repayments of short-term debt for purchases of inventory, property and equipment, net	(300		)	(246		)	(300		)	(246		)
Repayments of long-term debt	—			—			(600		)	(3,349		)
Repurchases of common stock	—			—			—			(1,071		)
Tax withholdings on share-based awards	(4		)	(5		)	(108		)	(89		)
Cash payments for debt prepayment or debt extinguishment costs	—			—			(28		)	(212		)
Other, net	(4		)	(6		)	(13		)	(6		)
Net cash used in financing activities	(543		)	(758		)	(1,599		)	(3,025		)
Change in cash and cash equivalents	548			114			450			(890		)
Cash and cash equivalents
Beginning of period	1,105			215			1,203			1,219
End of period	$	1,653		$	329		$	1,653		$	329
Supplemental disclosure of cash flow information
Interest payments, net of amounts capitalized	$	327		$	366		$	912		$	1,303
Operating lease payments (1)	703			—			2,094			—
Income tax payments	5			29			77			40
Noncash investing and financing activities
Noncash beneficial interest obtained in exchange for securitized receivables	$	1,734		$	1,263		$	4,862		$	3,596
(Decrease) increase in accounts payable for purchases of property and equipment	(460		)	78			(906		)	(672		)
Leased devices transferred from inventory to property and equipment	298			229			612			813
Returned leased devices transferred from property and equipment to inventory	(65		)	(74		)	(189		)	(246		)
Short-term debt assumed for financing of property and equipment	475			—			775			291
Operating lease right-of-use assets obtained in exchange for lease obligations	989			—			3,083			—
Financing lease right-of-use assets obtained in exchange for lease obligations	395			133			943			451

(1) On January 1, 2019, we adopted Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842),” which requires certain supplemental cash flow disclosures. Where these disclosures or a comparable figure were not required under the former lease standard, we have not retrospectively presented historical amounts. See Note 1 – Summary of Significant Accounting Policies for additional details.

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

T-Mobile US, Inc.

Condensed Consolidated Statement of Stockholders’ Equity

(Unaudited)

(in millions, except shares)	Common Stock Outstanding		Treasury Shares at Cost			Par Value and Additional Paid-in Capital			Accumulated Other Comprehensive Loss			Accumulated Deficit			Total Stockholders' Equity
Balance as of June 30, 2019	854,452,642		$	(8	)	$	38,242		$	(813	)	$	(10,454	)	$	26,967
Net income	—		—			—			—			870			870
Other comprehensive loss	—		—			—			(257		)	—			(257		)
Stock-based compensation	—		—			140			—			—			140
Exercise of stock options	19,619		—			—			—			—			—
Stock issued for employee stock purchase plan	955,849		—			55			—			—			55
Issuance of vested restricted stock units	179,155		—			—			—			—			—
Shares withheld related to net share settlement of stock awards and stock options	(53,349	)	—			(4		)	—			—			(4		)
Distribution from NQDC plan	3,755		—			—			—			—			—
Balance as of September 30, 2019	855,557,671		$	(8	)	$	38,433		$	(1,070	)	$	(9,584	)	$	27,771
Balance as of December 31, 2018	850,180,317		$	(6	)	$	38,010		$	(332	)	$	(12,954	)	$	24,718
Net income	—		—			—			—			2,717			2,717
Other comprehensive loss	—		—			—			(738		)	—			(738		)
Stock-based compensation	—		—			404			—			—			404
Exercise of stock options	70,754		—			1			—			—			1
Stock issued for employee stock purchase plan	2,091,650		—			124			—			—			124
Issuance of vested restricted stock units	4,729,270		—			—			—			—			—
Forfeiture of restricted stock awards	(20,769	)	—			—			—			—			—
Shares withheld related to net share settlement of stock awards and stock options	(1,474,011	)	—			(108		)	—			—			(108		)
Transfer RSU from NQDC plan	(19,540	)	(2		)	2			—			—			—
Prior year retained earnings	—		—			—			—			653			653
Balance as of September 30, 2019	855,557,671		$	(8	)	$	38,433		$	(1,070	)	$	(9,584	)	$	27,771

The accompanying notes are an integral part of these condensed consolidated financial statements

6

T-Mobile US, Inc.

Condensed Consolidated Statement of Stockholders’ Equity

(Unaudited)

(in millions, except shares)	Common Stock Outstanding		Treasury Shares at Cost			Par Value and Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Accumulated Deficit			Total Stockholders' Equity
Balance as of June 30, 2018	847,225,746		$	(7	)	$	37,786		$	—		$	(14,389	)	$	23,390
Net income	—		—			—			—			795			795
Stock-based compensation	—		—			127			—			—			127
Exercise of stock options	36,973		—			—			—			—			—
Stock issued for employee stock purchase plan	942,475		—			48			—			—			48
Issuance of vested restricted stock units	251,953		—			—			—			—			—
Shares withheld related to net share settlement of stock awards and stock options	(77,323	)	—			(5		)	—			—			(5		)
Distribution from NQDC plan	855		—			—			—			—			—
Balance as of September 30, 2018	848,380,679		$	(7	)	$	37,956		$	—		$	(13,594	)	$	24,355
Balance as of December 31, 2017	859,406,651		$	(4	)	$	38,629		$	8		$	(16,074	)	$	22,559
Net income	—		—			—			—			2,248			2,248
Stock-based compensation	—		—			361			—			—			361
Exercise of stock options	174,514		—			3			—			—			3
Stock issued for employee stock purchase plan	2,011,970		—			103			—			—			103
Issuance of vested restricted stock units	4,707,512		—			—			—			—			—
Issuance of restricted stock awards	354,459		—			—			—			—			—
Shares withheld related to net share settlement of stock awards and stock options	(1,481,129	)	—			(89		)	—			—			(89		)
Repurchases of common stock	(16,738,758	)	—			(1,054		)	—			—			(1,054		)
Transfer RSU from NQDC plan	(54,540	)	(3		)	3			—			—			—
Prior year retained earnings	—		—			—			(8		)	232			224
Balance as of September 30, 2018	848,380,679		$	(7	)	$	37,956		$	—		$	(13,594	)	$	24,355

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

T-Mobile US, Inc.

Index for Notes to the Condensed Consolidated Financial Statements

Note 1	Summary of Significant Accounting Policies	9
Note 2	Significant Transactions	12
Note 3	Business Combinations	13
Note 4	Receivables and Allowance for Credit Losses	15
Note 5	Sales of Certain Receivables	17
Note 6	Spectrum License Transactions	19
Note 7	Fair Value Measurements	20
Note 8	Tower Obligations	22
Note 9	Revenue from Contracts with Customers	23
Note 10	Earnings Per Share	25
Note 11	Leases	25
Note 12	Commitments and Contingencies	28
Note 13	Guarantor Financial Information	29

8

T-Mobile US, Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Note 1 – Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements of T-Mobile US, Inc. (“T-Mobile,” “we,” “our,” “us” or “the Company”) include all adjustments of a normal recurring nature necessary for the fair presentation of the results for the interim periods presented. The results for the interim periods are not necessarily indicative of those for the full year. The condensed consolidated financial statements should be read in conjunction with our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018.

The condensed consolidated financial statements include the balances and results of operations of T-Mobile and our consolidated subsidiaries. We consolidate majority-owned subsidiaries over which we exercise control, as well as variable interest entities (“VIE”) where we are deemed to be the primary beneficiary and VIEs which cannot be deconsolidated, such as those related to Tower obligations (Tower obligations are included in VIEs related to the 2012 Tower Transaction. See Note 8 - Tower Obligations for further information). Intercompany transactions and balances have been eliminated in consolidation.

The preparation of financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires our management to make estimates and assumptions which affect the financial statements and accompanying notes. Estimates are based on historical experience, where applicable, and other assumptions which our management believes are reasonable under the circumstances. These estimates are inherently subject to judgment and actual results could differ from those estimates.

Accounting Pronouncements Adopted During the Current Year

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842),” and has since modified the standard with several ASUs (collectively, the “new lease standard”). The new lease standard is effective for us, and we adopted the standard, on January 1, 2019.

We adopted the standard by recognizing and measuring leases at the adoption date with a cumulative effect of initially applying the guidance recognized at the date of initial application and as a result did not restate the prior periods presented in the Condensed Consolidated Financial Statements.

The new lease standard provides for a number of optional practical expedients in transition. We did not elect the “package of practical expedients” and as a result reassessed under the new lease standard our prior accounting conclusions about lease identification, lease classification and initial direct costs. We elected to use hindsight for determining the reasonably certain lease term. We did not elect the practical expedient pertaining to land easements as it is not applicable to us.

The new lease standard provides practical expedients and policy elections for an entity’s ongoing accounting. Generally, we elected the practical expedient to not separate lease and non-lease components in arrangements whereby we are the lessee. For arrangements in which we are lessor we did not elect this practical expedient. We did not elect the short-term lease recognition exemption, which includes the recognition of right-of-use assets and lease liabilities for existing short-term leases at transition. We have also applied this election to all active leases at transition.

The most significant judgments and impacts upon adoption of the standard include the following:

• In evaluating contracts to determine if they qualify as a lease, we consider factors such as if we have obtained or transferred substantially all of the rights to the underlying asset through exclusivity, if we can or if we have transferred the ability to direct the use of the asset by making decisions about how and for what purpose the asset will be used and if the lessor has substantive substitution rights.

• We recognized right-of-use assets and operating lease liabilities for operating leases that have not previously been recorded. The lease liability for operating leases is based on the net present value of future minimum lease payments.

9

The right-of-use asset for operating leases is based on the lease liability adjusted for the reclassification of certain balance sheet amounts such as prepaid rent and deferred rent, which we remeasured at adoption due to the application of hindsight to our lease term estimates. Deferred and prepaid rent will no longer be presented separately.

• Capital lease assets previously included within Property and equipment, net were reclassified to financing lease right-of-use assets, and capital lease liabilities previously included in Short-term debt and Long-term debt were reclassified to financing lease liabilities in our Condensed Consolidated Balance Sheet.

• Certain line items in the Condensed Consolidated Statements of Cash Flows and the “Supplemental disclosure of cash flow information” have been renamed to align with the new terminology presented in the new lease standard; “Repayment of capital lease obligations” is now presented as “Repayments of financing lease obligations” and “Assets acquired under capital lease obligations” is now presented as “Financing lease right-of-use assets obtained in exchange for lease obligations.” In the “Operating Activities” section of the Condensed Consolidated Statements of Cash Flows we have added “Operating lease right-of-use assets” and “Short and long-term operating lease liabilities” which represent the change in the operating lease asset and liability, respectively. Additionally, in the “Supplemental disclosure of cash flow information” section of the Condensed Consolidated Statements of Cash Flows we have added “Operating lease payments,” and in the “Noncash investing and financing activities” section we have added “Operating lease right-of-use assets obtained in exchange for lease obligations.”

• In determining the discount rate used to measure the right-of-use asset and lease liability, we use rates implicit in the lease, or if not readily available, we use our incremental borrowing rate. Our incremental borrowing rate is based on an estimated secured rate comprised of a risk-free LIBOR rate plus a credit spread as secured by our assets.

• Certain of our lease agreements include rental payments based on changes in the consumer price index (“CPI”). Lease liabilities are not remeasured as a result of changes in the CPI; instead, changes in the CPI are treated as variable lease payments and are excluded from the measurement of the right-of-use asset and lease liability. These payments are recognized in the period in which the related obligation was incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

• We elected the use of hindsight whereby we applied current lease term assumptions that are applied to new leases in determining the expected lease term period for all cell sites. Upon adoption of the new lease standard and application of hindsight, our expected lease term has shortened to reflect payments due for the initial non-cancelable lease term only. This assessment corresponds to our lease term assessment for new leases and aligns with the payments that have been disclosed as lease commitments in prior years. As a result, the average remaining lease term for cell sites has decreased from approximately nine to five years based on lease contracts in effect at transition on January 1, 2019. The aggregate impact of using hindsight is an estimated decrease in Total operating expense of $240 million in fiscal year 2019.

• We were also required to reassess the previously failed sale-leasebacks of certain T-Mobile-owned wireless communication tower sites and determine whether the transfer of the assets to the tower operator under the arrangement met the transfer of control criteria in the revenue standard and whether a sale should be recognized.

• We concluded that a sale has not occurred for the 6,200 tower sites transferred to Crown Castle International Corp. (“CCI”) pursuant to a master prepaid lease arrangement; therefore, these sites will continue to be accounted for as failed sale-leasebacks.

• We concluded that a sale should be recognized for the 900 tower sites transferred to CCI pursuant to the sale of a subsidiary and for the 500 tower sites transferred to Phoenix Tower International (“PTI”). Upon adoption on January 1, 2019, we derecognized our existing long-term financial obligation and the tower-related property and equipment associated with these 1,400 previously failed sale-leaseback tower sites and recognized a lease liability and right-of-use asset for the leaseback of the tower sites. The estimated impacts from the change in accounting conclusion are primarily a decrease in Other revenues of $44 million and a decrease in Interest expense of $34 million in fiscal year 2019.

• Rental revenues and expenses associated with co-location tower sites are presented on a net basis under the new lease standard. These revenues and expenses were presented on a gross basis under the former lease standard.

10

Including the impacts from a change in the accounting conclusion on the 1,400 previously failed sale-leaseback tower sites, the cumulative effect of initially applying the new lease standard on January 1, 2019 is as follows:

	January 1, 2019
(in millions)	Beginning Balance		Cumulative Effect Adjustment			Beginning Balance, As Adjusted
Assets
Other current assets	$	1,676	$	(78	)	$	1,598
Property and equipment, net	23,359		(2,339		)	21,020
Operating lease right-of-use assets	—		9,251			9,251
Financing lease right-of-use assets	—		2,271			2,271
Other intangible assets, net	198		(12		)	186
Other assets	1,623		(71		)	1,552
Liabilities and Stockholders’ Equity
Accounts payable and accrued liabilities	7,741		(65		)	7,676
Other current liabilities	787		28			815
Short-term and long-term debt	12,965		(2,015		)	10,950
Tower obligations	2,557		(345		)