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Guarantor Financial Information
 12 Months Ended
Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]  
Guarantor Financial Information
Note 18 – Guarantor Financial Information

Pursuant to the applicable indentures and supplemental indentures, the long-term debt to affiliates and third parties issued by T-Mobile USA (“Issuer”) is fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by T-Mobile (“Parent”) and certain of the Issuer’s 100% owned subsidiaries (“Guarantor Subsidiaries”).

The guarantees of the Guarantor Subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. The indentures and credit facilities governing the long-term debt contain covenants that, among other things, limit the ability of the Issuer and the Guarantor Subsidiaries to incur more debt, pay dividends and make distributions, make certain investments, repurchase stock, create liens or other encumbrances, enter into transactions with affiliates, enter into transactions that restrict dividends or distributions from subsidiaries, and merge, consolidate or sell, or otherwise dispose of, substantially all of their assets. Certain provisions of each of the credit facilities, indentures and supplemental indentures relating to the long-term debt restrict the ability of the Issuer to loan funds or make payments to Parent. However, the Issuer and Guarantor Subsidiaries are allowed to make certain permitted payments to the Parent under the terms of the indentures and the supplemental indentures.
On October 23, 2018, SLMA LLC was formed as a limited liability company in Delaware to serve as an escrow subsidiary to facilitate the contemplated issuance of notes by Parent in connection with the Transactions. SLMA LLC is an indirect, 100% owned finance subsidiary of Parent, as such term is used in Rule 3-10(b) of Regulation S-X, and has been designated as an unrestricted subsidiary under the Issuer’s existing debt securities. Any debt securities that may be issued from time to time by SLMA LLC will be fully and unconditionally guaranteed by Parent.

In 2019, certain Non-Guarantor Subsidiaries became Guarantor Subsidiaries. Certain prior period amounts have been reclassified to conform to the current period’s presentation.

Presented below is the condensed consolidating financial information as of December 31, 2019 and 2018, and for the years ended December 31, 2019, 2018 and 2017.
Condensed Consolidating Balance Sheet Information
December 31, 2019
(in millions)ParentIssuerGuarantor SubsidiariesNon-Guarantor SubsidiariesConsolidating and Eliminating AdjustmentsConsolidated
Assets
Current assets
Cash and cash equivalents$5  $1  $1,350  $172  $—  $1,528  
Accounts receivable, net—  —  1,616  272  —  1,888  
Equipment installment plan receivables, net—  —  2,600  —  —  2,600  
Accounts receivable from affiliates—  —  20  —  —  20  
Inventory—  —  964  —  —  964  
Other current assets—  646  975  684  —  2,305  
Total current assets5  647  7,525  1,128  —  9,305  
Property and equipment, net (1)
—  —  21,790  194  —  21,984  
Operating lease right-of-use assets—  —  10,933  —  —  10,933  
Financing lease right-of-use assets—  —  2,715  —  —  2,715  
Goodwill—  —  1,930  —  —  1,930  
Spectrum licenses—  —  36,465  —  —  36,465  
Other intangible assets, net—  —  115  —  —  115  
Investments in subsidiaries, net28,898  51,306  —  —  (80,204) —  
Intercompany receivables and note receivables—  3,464  —  —  (3,464) —  
Equipment installment plan receivables due after one year, net—  —  1,583  —  —  1,583  
Other assets—  18  1,797  239  (163) 1,891  
Total assets$28,903  $55,435  $84,853  $1,561  $(83,831) $86,921  
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued liabilities$—  $252  $6,236  $258  $—  $6,746  
Payables to affiliates—  145  42  —  —  187  
Short-term debt—  25  —  —  —  25  
Deferred revenue—  —  631  —  —  631  
Short-term operating lease liabilities—  —  2,287  —  —  2,287  
Short-term financing lease liabilities—  —  957  —  —  957  
Other current liabilities—  1,171  139  363  —  1,673  
Total current liabilities—  1,593  10,292  621  —  12,506  
Long-term debt—  10,958  —  —  —  10,958  
Long-term debt to affiliates—  13,986  —  —  —  13,986  
Tower obligations (1)
—  —  75  2,161  —  2,236  
Deferred tax liabilities—  —  5,770  —  (163) 5,607  
Operating lease liabilities—  —  10,539  —  —  10,539  
Financing lease liabilities—  —  1,346  —  —  1,346  
Negative carrying value of subsidiaries, net—  —  864  —  (864) —  
Intercompany payables and debt114  —  2,968  382  (3,464) —  
Other long-term liabilities—  —  937  17  —  954  
Total long-term liabilities114  24,944  22,499  2,560  (4,491) 45,626  
Total stockholders' equity (deficit)28,789  28,898  52,062  (1,620) (79,340) 28,789  
Total liabilities and stockholders' equity$28,903  $55,435  $84,853  $1,561  $(83,831) $86,921  
(1)Assets and liabilities for Non-Guarantor Subsidiaries are primarily included in VIEs related to the 2012 Tower Transaction. See Note 9 – Tower Obligations for further information.
Condensed Consolidating Balance Sheet Information
December 31, 2018
(in millions)ParentIssuerGuarantor SubsidiariesNon-Guarantor SubsidiariesConsolidating and Eliminating AdjustmentsConsolidated
Assets
Current assets
Cash and cash equivalents  $2  $1  $1,082  $118  $—  $1,203  
Accounts receivable, net  —  —  1,510  259  —  1,769  
Equipment installment plan receivables, net  —  —  2,538  —  —  2,538  
Accounts receivable from affiliates  —  —  11  —  —  11  
Inventory  —  —  1,084  —  —  1,084  
Other current assets  —  —  1,032  644  —  1,676  
Total current assets2  1  7,257  1,021  —  8,281  
Property and equipment, net (1)
—  —  23,113  246  —  23,359  
Goodwill—  —  1,901  —  —  1,901  
Spectrum licenses—  —  35,559  —  —  35,559  
Other intangible assets, net—  —  198  —  —  198  
Investments in subsidiaries, net25,314  46,516  —  —  (71,830) —  
Intercompany receivables and note receivables—  5,174  —  —  (5,174) —  
Equipment installment plan receivables due after one year, net—  —  1,547  —  —  1,547  
Other assets—  7  1,540  217  (141) 1,623  
Total assets$25,316  $51,698  $71,115  $1,484  $(77,145) $72,468  
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued liabilities$—  $228  $7,263  $250  $—  $7,741  
Payables to affiliates—  157  43  —  —  200  
Short-term debt—  —  841  —  —  841  
Deferred revenue—  —  698  —  —  698  
Other current liabilities—  447  164  176  —  787  
Total current liabilities—  832  9,009  426  —  10,267  
Long-term debt—  10,950  1,174  —  —  12,124  
Long-term debt to affiliates—  14,582  —  —  —  14,582  
Tower obligations (1)
—  —  384  2,173  —  2,557  
Deferred tax liabilities—  —  4,613  —  (141) 4,472  
Deferred rent expense—  —  2,781  —  —  2,781  
Negative carrying value of subsidiaries, net—  —  676  —  (676) —  
Intercompany payables and debt598  —  4,258  318  (5,174) —  
Other long-term liabilities—  20  926  21  —  967  
Total long-term liabilities598  25,552  14,812  2,512  (5,991) 37,483  
Total stockholders' equity (deficit)24,718  25,314  47,294  (1,454) (71,154) 24,718  
Total liabilities and stockholders' equity$25,316  $51,698  $71,115  $1,484  $(77,145) $72,468  
(1)Assets and liabilities for Non-Guarantor Subsidiaries are primarily included in VIEs related to the 2012 Tower Transaction. See Note 9 – Tower Obligations for further information.
Condensed Consolidating Statement of Comprehensive Income Information
Year Ended December 31, 2019
(in millions)ParentIssuerGuarantor SubsidiariesNon-Guarantor SubsidiariesConsolidating and Eliminating AdjustmentsConsolidated
Revenues
Service revenues$—  $—  $32,268  $3,003  $(1,277) $33,994  
Equipment revenues—  —  10,053  3  (216) 9,840  
Other revenues—  19  1,109  203  (167) 1,164  
Total revenues—  19  43,430  3,209  (1,660) 44,998  
Operating expenses
Cost of services, exclusive of depreciation and amortization shown separately below—  —  6,733  —  (111) 6,622  
Cost of equipment sales, exclusive of depreciation and amortization shown separately below—  —  10,908  1,207  (216) 11,899  
Selling, general and administrative—  16  14,467  989  (1,333) 14,139  
Depreciation and amortization—  —  6,564  52  —  6,616  
Total operating expense—  16  38,672  2,248  (1,660) 39,276  
Operating income—  3  4,758  961  —  5,722  
Other income (expense)
Interest expense—  (454) (88) (185) —  (727) 
Interest expense to affiliates—  (409) (20) —  21  (408) 
Interest income—  22  20  3  (21) 24  
Other (expense) income, net—  (13) 6  (1) —  (8) 
Total other expense, net—  (854) (82) (183) —  (1,119) 
Income (loss) before income taxes—  (851) 4,676  778  —  4,603  
Income tax expense—  —  (965) (170) —  (1,135) 
Earnings of subsidiaries3,468  4,319  31  —  (7,818) —  
Net income$3,468  $3,468  $3,742  $608  $(7,818) $3,468  
Net income$3,468  $3,468  $3,742  $608  $(7,818) $3,468  
Other comprehensive (loss) income, net of tax
Other comprehensive (loss) income, net of tax(536) (536) 186  —  350  (536) 
Total comprehensive income$2,932  $2,932  $3,928  $608  $(7,468) $2,932  
Condensed Consolidating Statement of Comprehensive Income Information
Year Ended December 31, 2018
(in millions)ParentIssuerGuarantor SubsidiariesNon-Guarantor SubsidiariesConsolidating and Eliminating AdjustmentsConsolidated
Revenues
Service revenues$—  $—  $30,637  $2,333  $(978) $31,992  
Equipment revenues—  —  10,209  1  (201) 10,009  
Other revenues—  29  1,113  228  (61) 1,309  
Total revenues—  29  41,959  2,562  (1,240) 43,310  
Operating expenses
Cost of services, exclusive of depreciation and amortization shown separately below—  —  6,283  24  —  6,307  
Cost of equipment sales, exclusive of depreciation and amortization shown separately below—  —  11,239  1,010  (202) 12,047  
Selling, general and administrative—  11  13,296  892  (1,038) 13,161  
Depreciation and amortization—  —  6,422  64  —  6,486  
Total operating expenses—  11  37,240  1,990  (1,240) 38,001  
Operating income—  18  4,719  572  —  5,309  
Other income (expense)
Interest expense—  (528) (114) (193) —  (835) 
Interest expense to affiliates—  (522) (21) —  21  (522) 
Interest income—  23  16  1  (21) 19  
Other (expense) income, net—  (87) 33  —  —  (54) 
Total other expense, net—  (1,114) (86) (192) —  (1,392) 
Income (loss) before income taxes—  (1,096) 4,633  380  —  3,917  
Income tax expense—  —  (950) (79) —  (1,029) 
Earnings of subsidiaries2,888  3,984  32  —  (6,904) —  
Net income$2,888  $2,888  $3,715  $301  $(6,904) $2,888  
Net income$2,888  $2,888  $3,715  $301  $(6,904) $2,888  
Other comprehensive (loss) income, net of tax
Other comprehensive (loss) income, net of tax(332) (332) 116  —  216  (332) 
Total comprehensive income$2,556  $2,556  $3,831  $301  $(6,688) $2,556  
Condensed Consolidating Statement of Comprehensive Income Information
Year Ended December 31, 2017
(in millions)ParentIssuerGuarantor SubsidiariesNon-Guarantor SubsidiariesConsolidating and Eliminating AdjustmentsConsolidated
Revenues
Service revenues$—  $—  $28,894  $2,113  $(847) $30,160  
Equipment revenues—  —  9,620  —  (245) 9,375  
Other revenues—  3  879  212  (25) 1,069  
Total revenues—  3  39,393  2,325  (1,117) 40,604  
Operating expenses
Cost of services, exclusive of depreciation and amortization shown separately below—  —  6,076  24  —  6,100  
Cost of equipment sales, exclusive of depreciation and amortization shown separately below—  —  10,849  1,003  (244) 11,608  
Selling, general and administrative—  —  12,276  856  (873) 12,259  
Depreciation and amortization—  —  5,914  70  —  5,984  
Gains on disposal of spectrum licenses—  —  (235) —  —  (235) 
Total operating expenses—  —  34,880  1,953  (1,117) 35,716  
Operating income—  3  4,513  372  —  4,888  
Other income (expense)
Interest expense—  (811) (109) (191) —  (1,111) 
Interest expense to affiliates—  (560) (23) —  23  (560) 
Interest income1  29  10  —  (23) 17  
Other income (expense), net—  (88) 16  (1) —  (73) 
Total other income (expense), net1  (1,430) (106) (192) —  (1,727) 
Income (loss) before income taxes1  (1,427) 4,407  180  —  3,161  
Income tax expense (benefit)—  —  1,527  (152) —  1,375  
Earnings (loss) of subsidiaries4,535  5,962  (57) —  (10,440) —  
Net income4,536  4,535  5,877  28  (10,440) 4,536  
Dividends on preferred stock(55) —  —  —  —  (55) 
Net income attributable to common stockholders$4,481  $4,535  $5,877  $28  $(10,440) $4,481  
Net income$4,536  $4,535  $5,877  $28  $(10,440) $4,536  
Other comprehensive loss, net of tax
Other comprehensive loss, net of tax7  7  7  —  (14) 7  
Total comprehensive income$4,543  $4,542  $5,884  $28  $(10,454) $4,543  
Condensed Consolidating Statement of Cash Flows Information
Year Ended December 31, 2019
(in millions)ParentIssuerGuarantor SubsidiariesNon-Guarantor SubsidiariesConsolidating and Eliminating AdjustmentsConsolidated
Operating activities
Net cash (used in) provided by operating activities$—  $(752) $11,338  $(3,207) $(555) $6,824  
Investing activities
Purchases of property and equipment—  —  (6,391) —  —  (6,391) 
Purchases of spectrum licenses and other intangible assets, including deposits—  —  (967) —  —  (967) 
Proceeds from sales of tower sites—  —  38  —  —  38  
Proceeds related to beneficial interests in securitization transactions—  —  37  3,839  —  3,876  
Net cash related to derivative contracts under collateral exchange arrangements—  (632) —  —  —  (632) 
Acquisition of companies, net of cash acquired—  (32) 1  —  —  (31) 
Other, net—  (12) (6) —  —  (18) 
Net cash (used in) provided by investing activities—  (676) (7,288) 3,839  —  (4,125) 
Financing activities
Proceeds from borrowing on revolving credit facility, net—  2,340  —  —  —  2,340  
Repayments of revolving credit facility—  —  (2,340) —  —  (2,340) 
Repayments of financing lease obligations—  —  (798) —  —  (798) 
Repayments of short-term debt for purchases of inventory, property and equipment, net—  —  (775) —  —  (775) 
Repayments of long-term debt—  —  (600) —  —  (600) 
Intercompany advances, net1  (912) 934  (23) —  —  
Tax withholdings on share-based awards—  —  (156) —  —  (156) 
Cash payments for debt prepayment or debt extinguishment costs—  —  (28) —  —  (28) 
Intercompany dividend paid—  —  —  (555) 555  —  
Other, net2  —  (19) —  —  (17) 
Net cash provided (used in) by financing activities3  1,428  (3,782) (578) 555  (2,374) 
Change in cash and cash equivalents3  —  268  54  —  325  
Cash and cash equivalents
Beginning of period2  1  1,082  118  —  1,203  
End of period$5  $1  $1,350  $172  $—  $1,528  
Condensed Consolidating Statement of Cash Flows Information
Year Ended December 31, 2018
(in millions)ParentIssuerGuarantor SubsidiariesNon-Guarantor SubsidiariesConsolidating and Eliminating AdjustmentsConsolidated
Operating activities
Net cash (used in) provided by operating activities$—  $(1,254) $10,414  $(5,041) $(220) $3,899  
Investing activities
Purchases of property and equipment—  —  (5,536) (5) —  (5,541) 
Purchases of spectrum licenses and other intangible assets, including deposits—  —  (127) —  —  (127) 
Proceeds related to beneficial interests in securitization transactions—  —  53  5,353  —  5,406  
Acquisition of companies, net of cash—  —  (338) —  —  (338) 
Equity investment in subsidiary—  —  (43) —  43  —  
Other, net—  (7) 28  —  —  21  
Net cash (used in) provided by investing activities—  (7) (5,963) 5,348  43  (579) 
Financing activities
Proceeds from issuance of long-term debt—  2,494  —  —  —  2,494  
Proceeds from borrowing on revolving credit facility, net—  6,265  —  —  —  6,265  
Repayments of revolving credit facility—  —  (6,265) —  —  (6,265) 
Repayments of financing lease obligations—  —  (700) —  —  (700) 
Repayments of short-term debt for purchases of inventory, property and equipment, net—  —  (300) —  —  (300) 
Repayments of long-term debt—  —  (3,349) —  —  (3,349) 
Repurchases of common stock(1,071) —  —  —  —  (1,071) 
Intercompany advances, net995  (7,498) 6,530  (27) —  —  
Equity investment from parent—  —  43  —  (43) —  
Tax withholdings on share-based awards—  —  (146) —  —  (146) 
Cash payments for debt prepayment or debt extinguishment costs—  —  (212) —  —  (212) 
Intercompany dividend paid—  —  —  (220) 220  —  
Other, net4  —  (56) —  —  (52) 
Net cash (used in) provided by financing activities(72) 1,261  (4,455) (247) 177  (3,336) 
Change in cash and cash equivalents(72) —  (4) 60  —  (16) 
Cash and cash equivalents
Beginning of period74  1  1,086  58  —  1,219  
End of period$2  $1  $1,082  $118  $—  $1,203  
Condensed Consolidating Statement of Cash Flows Information
Year Ended December 31, 2017
(in millions)ParentIssuerGuarantor SubsidiariesNon-Guarantor SubsidiariesConsolidating and Eliminating AdjustmentsConsolidated
Operating activities
Net cash provided by (used in) operating activities$1  $(1,613) $9,761  $(4,218) $(100) $3,831  
Investing activities
Purchases of property and equipment—  —  (5,237) —  —  (5,237) 
Purchases of spectrum licenses and other intangible assets, including deposits—  —  (5,828) —  —  (5,828) 
Proceeds related to beneficial interests in securitization transactions—  —  43  4,276  —  4,319  
Equity investment in subsidiary(308) —  —  —  308  —  
Other, net—  —  1  —  —  1  
Net cash (used in) provided by investing activities(308) —  (11,021) 4,276  308  (6,745) 
Financing activities
Proceeds from issuance of long-term debt—  10,480  —  —  —  10,480  
Proceeds from borrowing on revolving credit facility, net—  2,910  —  —  —  2,910  
Repayments of revolving credit facility—  —  (2,910) —  —  (2,910) 
Repayments of financing lease obligations—  —  (486) —  —  (486) 
Repayments of short-term debt for purchases of inventory, property and equipment, net—  —  (300) —  —  (300) 
Repayments of long-term debt—  —  (10,230) —  —  (10,230) 
Repurchases of common stock(427) —  —  —  —  (427) 
Intercompany advances, net484  (14,817) 14,300  33  —  —  
Equity investment from parent—  308  —  —  (308) —  
Tax withholdings on share-based awards—  —  (166) —  —  (166) 
Dividends on preferred stock(55) —  —  —  —  (55) 
Cash payments for debt prepayment or debt extinguishment costs—  —  (188) —  —  (188) 
Intercompany dividend paid—  —  —  (100) 100  —  
Other, net21  —  (16) —  —  5  
Net cash provided by (used in) financing activities23  (1,119) 4  (67) (208) (1,367) 
Change in cash and cash equivalents(284) (2,732) (1,256) (9) —  (4,281) 
Cash and cash equivalents
Beginning of period358  2,733  2,342  67  —  5,500  
End of period$74  $1  $1,086  $58  $—  $1,219