(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(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 | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Class | Shares Outstanding as of July 21, 2023 | ||||
Common Stock, par value $0.00001 per share |
(in millions, except share and per share amounts) | June 30, 2023 | December 31, 2022 | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowance for credit losses of $ | |||||||||||
Equipment installment plan receivables, net of allowance for credit losses and imputed discount of $ | |||||||||||
Inventory | |||||||||||
Prepaid expenses | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Financing lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Spectrum licenses | |||||||||||
Other intangible assets, net | |||||||||||
Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount of $ | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable and accrued liabilities | $ | $ | |||||||||
Short-term debt | |||||||||||
Deferred revenue | |||||||||||
Short-term operating lease liabilities | |||||||||||
Short-term financing lease liabilities | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Long-term debt to affiliates | |||||||||||
Tower obligations | |||||||||||
Deferred tax liabilities | |||||||||||
Operating lease liabilities | |||||||||||
Financing lease liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total long-term liabilities | |||||||||||
Commitments and contingencies (Note 13) | |||||||||||
Stockholders' equity | |||||||||||
Common stock, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Treasury stock, at cost, | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings (accumulated deficit) | ( | ||||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions, except share and per share amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
Postpaid revenues | $ | $ | $ | $ | |||||||||||||||||||
Prepaid revenues | |||||||||||||||||||||||
Wholesale and other service revenues | |||||||||||||||||||||||
Total service revenues | |||||||||||||||||||||||
Equipment revenues | |||||||||||||||||||||||
Other revenues | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Cost of services, exclusive of depreciation and amortization shown separately below | |||||||||||||||||||||||
Cost of equipment sales, exclusive of depreciation and amortization shown separately below | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Impairment expense | |||||||||||||||||||||||
Loss (gain) on disposal group held for sale | ( | ||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Other expense, net | |||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense), net | ( | ( | |||||||||||||||||||||
Total other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) before income taxes | ( | ||||||||||||||||||||||
Income tax (expense) benefit | ( | ( | ( | ||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ||||||||||||||||||
Other comprehensive income, net of tax | |||||||||||||||||||||||
Reclassification of loss from cash flow hedges, net of tax effect of $ | |||||||||||||||||||||||
Unrealized gain (loss) on foreign currency translation adjustment, net of tax effect of $ | ( | ( | |||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||
Total comprehensive income (loss) | $ | $ | ( | $ | $ | ||||||||||||||||||
Earnings (loss) per share | |||||||||||||||||||||||
Basic | $ | $ | ( | $ | $ | ||||||||||||||||||
Diluted | $ | $ | ( | $ | $ | ||||||||||||||||||
Weighted-average shares outstanding | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Operating activities | |||||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||
Deferred income tax expense (benefit) | ( | ||||||||||||||||||||||
Bad debt expense | |||||||||||||||||||||||
Losses from sales of receivables | |||||||||||||||||||||||
Impairment expense | |||||||||||||||||||||||
Loss on remeasurement of disposal group held for sale | |||||||||||||||||||||||
Changes in operating assets and liabilities | |||||||||||||||||||||||
Accounts receivable | ( | ( | ( | ( | |||||||||||||||||||
Equipment installment plan receivables | ( | ( | |||||||||||||||||||||
Inventory | |||||||||||||||||||||||
Operating lease right-of-use assets | |||||||||||||||||||||||
Other current and long-term assets | ( | ( | |||||||||||||||||||||
Accounts payable and accrued liabilities | ( | ( | ( | ||||||||||||||||||||
Short- and long-term operating lease liabilities | ( | ( | ( | ( | |||||||||||||||||||
Other current and long-term liabilities | ( | ( | |||||||||||||||||||||
Other, net | |||||||||||||||||||||||
Net cash provided by operating activities | |||||||||||||||||||||||
Investing activities | |||||||||||||||||||||||
Purchases of property and equipment, including capitalized interest of $( | ( | ( | ( | ( | |||||||||||||||||||
Purchases of spectrum licenses and other intangible assets, including deposits | ( | ( | ( | ( | |||||||||||||||||||
Proceeds from sales of tower sites | |||||||||||||||||||||||
Proceeds related to beneficial interests in securitization transactions | |||||||||||||||||||||||
Acquisition of companies, net of cash and restricted cash acquired | ( | ||||||||||||||||||||||
Other, net | |||||||||||||||||||||||
Net cash used in investing activities | ( | ( | ( | ( | |||||||||||||||||||
Financing activities | |||||||||||||||||||||||
Proceeds from issuance of long-term debt | |||||||||||||||||||||||
Repayments of financing lease obligations | ( | ( | ( | ( | |||||||||||||||||||
Repayments of long-term debt | ( | ( | ( | ( | |||||||||||||||||||
Repurchases of common stock | ( | ( | |||||||||||||||||||||
Tax withholdings on share-based awards | ( | ( | ( | ( | |||||||||||||||||||
Other, net | ( | ( | ( | ( | |||||||||||||||||||
Net cash used in financing activities | ( | ( | ( | ( | |||||||||||||||||||
Change in cash and cash equivalents, including restricted cash and cash held for sale | ( | ( | |||||||||||||||||||||
Cash and cash equivalents, including restricted cash and cash held for sale | |||||||||||||||||||||||
Beginning of period | |||||||||||||||||||||||
End of period | $ | $ | $ | $ | |||||||||||||||||||
(in millions, except shares) | Common Stock Outstanding | Treasury Stock Outstanding | Treasury Shares at Cost | Par Value and Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of vested restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock awards and stock options | ( | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||
Other, net | ( | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock issued for employee stock purchase plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Issuance of vested restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock awards and stock options | ( | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||
Other, net | ( | — | — | ||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
(in millions, except shares) | Common Stock Outstanding | Treasury 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 March 31, 2022 | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of vested restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock awards and stock options | ( | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Other, net | ( | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock issued for employee stock purchase plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Issuance of vested restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement of stock awards and stock options | ( | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Other, net | ( | — | — | ||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
(in millions) | June 30, 2023 | December 31, 2022 | |||||||||
EIP receivables, gross | $ | $ | |||||||||
Unamortized imputed discount | ( | ( | |||||||||
EIP receivables, net of unamortized imputed discount | |||||||||||
Allowance for credit losses | ( | ( | |||||||||
EIP receivables, net of allowance for credit losses and imputed discount | $ | $ | |||||||||
Classified on our condensed consolidated balance sheets as: | |||||||||||
Equipment installment plan receivables, net of allowance for credit losses and imputed discount | $ | $ | |||||||||
Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount | |||||||||||
EIP receivables, net of allowance for credit losses and imputed discount | $ | $ | |||||||||
Originated in 2023 | Originated in 2022 | Originated prior to 2022 | Total EIP Receivables, net of unamortized imputed discounts | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Prime | Subprime | Prime | Subprime | Prime | Subprime | Prime | Subprime | Grand total | ||||||||||||||||||||||||||||||||||||||||||||
Current - 30 days past due | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
31 - 60 days past due | |||||||||||||||||||||||||||||||||||||||||||||||||||||
61 - 90 days past due | |||||||||||||||||||||||||||||||||||||||||||||||||||||
More than 90 days past due | |||||||||||||||||||||||||||||||||||||||||||||||||||||
EIP receivables, net of unamortized imputed discount | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Originated in 2023 | Originated in 2022 | Originated prior to 2022 | Total write-offs | |||||||||||||||||||
Write-offs | $ | $ | $ | $ |
June 30, 2023 | June 30, 2022 | ||||||||||||||||||||||||||||||||||
(in millions) | Accounts Receivable Allowance | EIP Receivables Allowance | Total | Accounts Receivable Allowance | EIP Receivables Allowance | Total | |||||||||||||||||||||||||||||
Allowance for credit losses and imputed discount, beginning of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Bad debt expense | |||||||||||||||||||||||||||||||||||
Write-offs | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Change in imputed discount on short-term and long-term EIP receivables | N/A | N/A | |||||||||||||||||||||||||||||||||
Impact on the imputed discount from sales of EIP receivables | N/A | ( | ( | N/A | ( | ( | |||||||||||||||||||||||||||||
Allowance for credit losses and imputed discount, end of period | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
(in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Other current assets | $ | $ | |||||||||
Other assets | |||||||||||
(in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Other current assets | $ | $ | |||||||||
Other current liabilities |
(in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Derecognized net service accounts receivable and EIP receivables | $ | $ | |||||||||
Other current assets | |||||||||||
of which, deferred purchase price | |||||||||||
Other long-term assets | |||||||||||
of which, deferred purchase price | |||||||||||
Other current liabilities | |||||||||||
Net cash proceeds since inception | |||||||||||
Of which: | |||||||||||
Change in net cash proceeds during the year-to-date period | ( | ( | |||||||||
Net cash proceeds funded by reinvested collections | |||||||||||
(in millions) | 2023 | ||||
Spectrum licenses, beginning of year | $ | ||||
Spectrum license acquisitions | |||||
Costs to clear spectrum | |||||
Spectrum licenses, end of period | $ | ||||
(in millions) | Level within the Fair Value Hierarchy | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount (1) | Fair Value (1) | ||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Senior Notes to third parties | 1 | $ | $ | $ | $ | ||||||||||||||||||||||||
Senior Notes to affiliates | 2 | ||||||||||||||||||||||||||||
Senior Secured Notes to third parties | 1 | ||||||||||||||||||||||||||||
ABS Notes to third parties | 2 | ||||||||||||||||||||||||||||
(in millions) | December 31, 2022 | Proceeds from Issuances and Borrowings (1) | Repayments | Reclassifications (1) | Other (2) | June 30, 2023 | |||||||||||||||||||||||||||||
Short-term debt | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
Long-term debt | ( | ( | |||||||||||||||||||||||||||||||||
Total debt to third parties | ( | ( | |||||||||||||||||||||||||||||||||
Long-term debt to affiliates | |||||||||||||||||||||||||||||||||||
Total debt | $ | $ | $ | ( | $ | $ | ( | $ |
(in millions) | Principal Issuances | Premiums/Discounts and Issuance Costs, Net | Net Proceeds from Issuance of Long-Term Debt | Issue Date | |||||||||||||||||||
$ | $ | ( | $ | February 9, 2023 | |||||||||||||||||||
( | February 9, 2023 | ||||||||||||||||||||||
February 9, 2023 | |||||||||||||||||||||||
( | May 11, 2023 | ||||||||||||||||||||||
( | May 11, 2023 | ||||||||||||||||||||||
( | May 11, 2023 | ||||||||||||||||||||||
Total of Senior Notes issued | $ | $ | ( | $ | |||||||||||||||||||
(in millions) | Principal Amount | Repayment Date | |||||||||
$ | Various | ||||||||||
Various | |||||||||||
Total Repayments | $ |
Expected Maturities | |||||||||||
(in millions) | 2024 | 2025 | |||||||||
$ | $ | ||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
(in millions) | |||||||||||
Assets | |||||||||||
Equipment installment plan receivables, net | $ | $ | |||||||||
Equipment installment plan receivables due after one year, net | |||||||||||
Other current assets | |||||||||||
Liabilities | |||||||||||
Accounts payable and accrued liabilities | $ | $ | |||||||||
Long-term debt |
(in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Property and equipment, net | $ | $ | |||||||||
Tower obligations | |||||||||||
Other long-term liabilities |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Postpaid service revenues | |||||||||||||||||||||||
Postpaid phone revenues | $ | $ | $ | $ | |||||||||||||||||||
Postpaid other revenues | |||||||||||||||||||||||
Total postpaid service revenues | $ | $ | $ | $ | |||||||||||||||||||
(in millions) | Contract Assets | Contract Liabilities | |||||||||
Balance as of December 31, 2022 | $ | $ | |||||||||
Balance as of June 30, 2023 | |||||||||||
Change | $ | $ | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Amounts included in the beginning of year contract liability balance | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions, except shares and per share amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ||||||||||||||||||
Weighted-average shares outstanding – basic | |||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Outstanding stock options and unvested stock awards | |||||||||||||||||||||||
Weighted-average shares outstanding – diluted | |||||||||||||||||||||||
Earnings (loss) per share – basic | $ | $ | ( | $ | $ | ||||||||||||||||||
Earnings (loss) per share – diluted | $ | $ | ( | $ | $ | ||||||||||||||||||
Potentially dilutive securities: | |||||||||||||||||||||||
Outstanding stock options and unvested stock awards | |||||||||||||||||||||||
SoftBank contingent consideration (1) | |||||||||||||||||||||||
(in millions) | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | Incurred to Date | ||||||||||||||
Contract termination costs | $ | $ | $ | ||||||||||||||
Severance costs | |||||||||||||||||
Network decommissioning | |||||||||||||||||
Total restructuring plan expenses | $ | $ | $ | ||||||||||||||
(in millions) | December 31, 2022 | Expenses Incurred | Cash Payments | Adjustments for Non-Cash Items (1) | June 30, 2023 | ||||||||||||||||||||||||
Contract termination costs | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
Severance costs | ( | ||||||||||||||||||||||||||||
Network decommissioning | ( | ( | |||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ( | $ |
(in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Accounts payable | $ | $ | |||||||||
Payroll and related benefits | |||||||||||
Property and other taxes, including payroll | |||||||||||
Accrued interest | |||||||||||
Commissions and contract termination costs | |||||||||||
Toll and interconnect | |||||||||||
Other | |||||||||||
Accounts payable and accrued liabilities | $ | $ | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Interest payments, net of amounts capitalized | $ | $ | $ | $ | |||||||||||||||||||
Operating lease payments | |||||||||||||||||||||||
Income tax payments | |||||||||||||||||||||||
Non-cash investing and financing activities | |||||||||||||||||||||||
Non-cash beneficial interest obtained in exchange for securitized receivables | $ | $ | $ | $ | |||||||||||||||||||
Change in accounts payable and accrued liabilities for purchases of property and equipment | ( | ( | ( | ( | |||||||||||||||||||
Increase in Tower obligations from contract modification | |||||||||||||||||||||||
Operating lease right-of-use assets obtained in exchange for lease obligations | |||||||||||||||||||||||
Financing lease right-of-use assets obtained in exchange for lease obligations |
(in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Cash and cash equivalents | $ | $ | |||||||||
Cash and cash equivalents held for sale (included in Other current assets) | |||||||||||
Restricted cash (included in Other current assets) | |||||||||||
Restricted cash (included in Other assets) | |||||||||||
Cash and cash equivalents, including restricted cash and cash held for sale | $ | $ |
(in millions) | Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | $ | % | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||
Merger-related costs | |||||||||||||||||||||||||||||||||||||||||||||||
Cost of services, exclusive of depreciation and amortization | $ | 178 | $ | 961 | $ | (783) | (81) | % | $ | 386 | $ | 1,568 | $ | (1,182) | (75) | % | |||||||||||||||||||||||||||||||
Cost of equipment sales, exclusive of depreciation and amortization | — | 459 | (459) | (100) | % | (9) | 1,210 | (1,219) | (101) | % | |||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 98 | 248 | (150) | (60) | % | 257 | 303 | (46) | (15) | % | |||||||||||||||||||||||||||||||||||||
Total Merger-related costs | $ | 276 | $ | 1,668 | $ | (1,392) | (83) | % | $ | 634 | $ | 3,081 | $ | (2,447) | (79) | % | |||||||||||||||||||||||||||||||
Net cash payments for Merger-related costs | $ | 728 | $ | 907 | $ | (179) | (20) | % | $ | 1,212 | $ | 1,800 | $ | (588) | (33) | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | |||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Postpaid revenues | $ | 12,070 | $ | 11,445 | $ | 625 | 5 | % | $ | 23,932 | $ | 22,646 | $ | 1,286 | 6 | % | |||||||||||||||||||||||||||||||
Prepaid revenues | 2,444 | 2,469 | (25) | (1) | % | 4,861 | 4,924 | (63) | (1) | % | |||||||||||||||||||||||||||||||||||||
Wholesale and other service revenues | 1,224 | 1,402 | (178) | (13) | % | 2,491 | 2,874 | (383) | (13) | % | |||||||||||||||||||||||||||||||||||||
Total service revenues | 15,738 | 15,316 | 422 | 3 | % | 31,284 | 30,444 | 840 | 3 | % | |||||||||||||||||||||||||||||||||||||
Equipment revenues | 3,169 | 4,130 | (961) | (23) | % | 6,888 | 8,824 | (1,936) | (22) | % | |||||||||||||||||||||||||||||||||||||
Other revenues | 289 | 255 | 34 | 13 | % | 656 | 553 | 103 | 19 | % | |||||||||||||||||||||||||||||||||||||
Total revenues | 19,196 | 19,701 | (505) | (3) | % | 38,828 | 39,821 | (993) | (2) | % | |||||||||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||||||||||||||
Cost of services, exclusive of depreciation and amortization shown separately below | 2,916 | 4,060 | (1,144) | (28) | % | 5,977 | 7,787 | (1,810) | (23) | % | |||||||||||||||||||||||||||||||||||||
Cost of equipment sales, exclusive of depreciation and amortization shown separately below | 4,088 | 5,108 | (1,020) | (20) | % | 8,676 | 11,054 | (2,378) | (22) | % | |||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 5,272 | 5,856 | (584) | (10) | % | 10,697 | 10,912 | (215) | (2) | % | |||||||||||||||||||||||||||||||||||||
Impairment expense | — | 477 | (477) | (100) | % | — | 477 | (477) | (100) | % | |||||||||||||||||||||||||||||||||||||
Loss (gain) on disposal group held for sale | 17 | — | 17 | NM | (25) | — | (25) | NM | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 3,110 | 3,491 | (381) | (11) | % | 6,313 | 7,076 | (763) | (11) | % | |||||||||||||||||||||||||||||||||||||
Total operating expenses | 15,403 | 18,992 | (3,589) | (19) | % | 31,638 | 37,306 | (5,668) | (15) | % | |||||||||||||||||||||||||||||||||||||
Operating income | 3,793 | 709 | 3,084 | 435 | % | 7,190 | 2,515 | 4,675 | 186 | % | |||||||||||||||||||||||||||||||||||||
Other expense, net | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | (861) | (851) | (10) | 1 | % | (1,696) | (1,715) | 19 | (1) | % | |||||||||||||||||||||||||||||||||||||
Other income (expense), net | 6 | (21) | 27 | (129) | % | 15 | (32) | 47 | (147) | % | |||||||||||||||||||||||||||||||||||||
Total other expense, net | (855) | (872) | 17 | (2) | % | (1,681) | (1,747) | 66 | (4) | % | |||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 2,938 | (163) | 3,101 | NM | 5,509 | 768 | 4,741 | 617 | % | ||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | (717) | 55 | (772) | NM | (1,348) | (163) | (1,185) | 727 | % | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 2,221 | $ | (108) | $ | 2,329 | NM | $ | 4,161 | $ | 605 | $ | 3,556 | 588 | % | ||||||||||||||||||||||||||||||||
Statement of Cash Flows Data | |||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 4,355 | $ | 4,209 | $ | 146 | 3 | % | $ | 8,406 | $ | 8,054 | $ | 352 | 4 | % | |||||||||||||||||||||||||||||||
Net cash used in investing activities | (1,487) | (2,559) | 1,072 | (42) | % | (3,215) | (7,651) | 4,436 | (58) | % | |||||||||||||||||||||||||||||||||||||
Net cash used in financing activities | (784) | (1,744) | 960 | (55) | % | (3,057) | (3,880) | 823 | (21) | % | |||||||||||||||||||||||||||||||||||||
Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 7,405 | $ | 7,004 | $ | 401 | 6 | % | $ | 14,604 | $ | 13,954 | $ | 650 | 5 | % | |||||||||||||||||||||||||||||||
Core Adjusted EBITDA | 7,336 | 6,618 | 718 | 11 | % | 14,388 | 13,081 | 1,307 | 10 | % | |||||||||||||||||||||||||||||||||||||
Adjusted Free Cash Flow | 2,877 | 1,758 | 1,119 | 64 | % | 5,278 | 3,407 | 1,871 | 55 | % | |||||||||||||||||||||||||||||||||||||
(in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Current assets | $ | 18,819 | $ | 17,661 | |||||||
Noncurrent assets | 179,853 | 181,673 | |||||||||
Current liabilities | 22,838 | 23,146 | |||||||||
Noncurrent liabilities | 125,003 | 120,385 | |||||||||
Due to non-guarantors | 10,140 | 9,325 | |||||||||
Due to related parties | 1,556 | 1,571 | |||||||||
(in millions) | Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||
Total revenues | $ | 37,487 | $ | 77,054 | |||||||
Operating income | 5,356 | 2,985 | |||||||||
Net income (loss) | 2,359 | (572) | |||||||||
Revenue from non-guarantors | 1,168 | 2,427 | |||||||||
Operating expenses to non-guarantors | 1,334 | 2,659 | |||||||||
Other expense to non-guarantors | (335) | (327) | |||||||||
(in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Current assets | $ | 17,767 | $ | 9,319 | |||||||
Noncurrent assets | 11,475 | 11,271 | |||||||||
Current liabilities | 16,226 | 15,854 | |||||||||
Noncurrent liabilities | 105,069 | 65,118 | |||||||||
Due to non-guarantors | 39,146 | 3,930 | |||||||||
Due to related parties | 1,556 | 1,571 | |||||||||
(in millions) | Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||
Total revenues | $ | 8 | $ | 7 | |||||||
Operating loss | (1,542) | (3,479) | |||||||||
Net (loss) income (1) | (3,409) | 2,471 | |||||||||
Other (expense) income, net, (to) from non-guarantors | (933) | 525 | |||||||||
(in millions) | June 30, 2023 | December 31, 2022 | |||||||||
Current assets | $ | 17,767 | $ | 9,320 | |||||||
Noncurrent assets | 11,475 | 16,337 | |||||||||
Current liabilities | 16,298 | 15,926 | |||||||||
Noncurrent liabilities | 101,295 | 66,516 | |||||||||
Due to non-guarantors | 30,113 | — | |||||||||
Due from non-guarantors | — | 5,066 | |||||||||
Due to related parties | 1,556 | 1,571 | |||||||||
(in millions) | Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||
Total revenues | $ | 8 | $ | 7 | |||||||
Operating loss | (1,542) | (3,479) | |||||||||
Net (loss) income (1) | (3,305) | 2,604 | |||||||||
Other (expense) income, net, (to) from non-guarantors | (676) | 941 | |||||||||
As of June 30, | Change | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | # | % | |||||||||||||||||||
Postpaid accounts (1) | 29,112 | 27,818 | 1,294 | 5 | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | # | % | 2023 | 2022 | # | % | |||||||||||||||||||||||||||||||||||||||
Postpaid net account additions | 299 | 380 | (81) | (21) | % | 586 | 728 | (142) | (20) | % |
As of June 30, | Change | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | # | % | |||||||||||||||||||
Customers, end of period | |||||||||||||||||||||||
Postpaid phone customers (1) | 74,132 | 71,053 | 3,079 | 4 | % | ||||||||||||||||||
Postpaid other customers (1) | 20,954 | 17,734 | 3,220 | 18 | % | ||||||||||||||||||
Total postpaid customers | 95,086 | 88,787 | 6,299 | 7 | % | ||||||||||||||||||
Prepaid customers (1) | 21,516 | 21,236 | 280 | 1 | % | ||||||||||||||||||
Total customers | 116,602 | 110,023 | 6,579 | 6 | % | ||||||||||||||||||
Adjustments to customers (1) | — | (1,878) | 1,878 | (100) | % | ||||||||||||||||||
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | # | % | 2023 | 2022 | # | % | |||||||||||||||||||||||||||||||||||||||
Net customer additions | |||||||||||||||||||||||||||||||||||||||||||||||
Postpaid phone customers | 760 | 723 | 37 | 5 | % | 1,298 | 1,312 | (14) | (1) | % | |||||||||||||||||||||||||||||||||||||
Postpaid other customers | 801 | 933 | (132) | (14) | % | 1,556 | 1,662 | (106) | (6) | % | |||||||||||||||||||||||||||||||||||||
Total postpaid customers | 1,561 | 1,656 | (95) | (6) | % | 2,854 | 2,974 | (120) | (4) | % | |||||||||||||||||||||||||||||||||||||
Prepaid customers | 124 | 146 | (22) | (15) | % | 150 | 208 | (58) | (28) | % | |||||||||||||||||||||||||||||||||||||
Total customers | 1,685 | 1,802 | (117) | (6) | % | 3,004 | 3,182 | (178) | (6) | % | |||||||||||||||||||||||||||||||||||||
Adjustments to customers | — | (1,320) | 1,320 | (100) | % | — | (1,878) | 1,878 | (100) | % | |||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Postpaid phone churn | 0.77 | % | 0.80 | % | -3 bps | 0.83 | % | 0.86 | % | -3 bps | |||||||||||||||||||||||||
Prepaid churn | 2.62 | % | 2.58 | % | 4 bps | 2.69 | % | 2.62 | % | 7 bps | |||||||||||||||||||||||||
(in dollars) | Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | $ | % | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||
Postpaid ARPA | $ | 138.94 | $ | 137.92 | $ | 1.02 | 1 | % | $ | 138.49 | $ | 137.23 | $ | 1.26 | 1 | % |
(in dollars) | Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | $ | % | 2023 | 2022 | $ | % | ||||||||||||||||||||||||||||||||||||||||
Postpaid phone ARPU | $ | 48.84 | $ | 48.96 | $ | (0.12) | — | % | $ | 48.73 | $ | 48.69 | $ | 0.04 | — | % | |||||||||||||||||||||||||||||||
Prepaid ARPU | 37.98 | 38.71 | (0.73) | (2) | % | 37.98 | 38.95 | (0.97) | (2) | % | |||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 2,221 | $ | (108) | $ | 2,329 | NM | $ | 4,161 | $ | 605 | $ | 3,556 | 588 | % | ||||||||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 861 | 851 | 10 | 1 | % | 1,696 | 1,715 | (19) | (1) | % | |||||||||||||||||||||||||||||||||||||
Other (income) expense, net | (6) | 21 | (27) | (129) | % | (15) | 32 | (47) | (147) | % | |||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 717 | (55) | 772 | NM | 1,348 | 163 | 1,185 | 727 | % | ||||||||||||||||||||||||||||||||||||||
Operating income | 3,793 | 709 | 3,084 | 435 | % | 7,190 | 2,515 | 4,675 | 186 | % | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 3,110 | 3,491 | (381) | (11) | % | 6,313 | 7,076 | (763) | (11) | % | |||||||||||||||||||||||||||||||||||||
Stock-based compensation (1) | 155 | 149 | 6 | 4 | % | 328 | 285 | 43 | 15 | % | |||||||||||||||||||||||||||||||||||||
Merger-related costs | 276 | 1,668 | (1,392) | (83) | % | 634 | 3,081 | (2,447) | (79) | % | |||||||||||||||||||||||||||||||||||||
Impairment expense | — | 477 | (477) | (100) | % | — | 477 | (477) | (100) | % | |||||||||||||||||||||||||||||||||||||
Legal-related expenses (recoveries), net (2) | — | 400 | (400) | (100) | % | (43) | 400 | (443) | (111) | % | |||||||||||||||||||||||||||||||||||||
Loss (gain) on disposal group held for sale | 17 | — | 17 | NM | (25) | — | (25) | NM | |||||||||||||||||||||||||||||||||||||||
Other, net (3) | 54 | 110 | (56) | (51) | % | 207 | 120 | 87 | 73 | % | |||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | 7,405 | 7,004 | 401 | 6 | % | 14,604 | 13,954 | 650 | 5 | % | |||||||||||||||||||||||||||||||||||||
Lease revenues | (69) | (386) | 317 | (82) | % | (216) | (873) | 657 | (75) | % | |||||||||||||||||||||||||||||||||||||
Core Adjusted EBITDA | $ | 7,336 | $ | 6,618 | $ | 718 | 11 | % | $ | 14,388 | $ | 13,081 | $ | 1,307 | 10 | % | |||||||||||||||||||||||||||||||
Net income (loss) margin (Net income (loss) divided by Service revenues) | 14 | % | (1) | % | 1,500 bps | 13 | % | 2 | % | 1,100 bps | |||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin (Adjusted EBITDA divided by Service revenues) | 47 | % | 46 | % | 100 bps | 47 | % | 46 | % | 100 bps | |||||||||||||||||||||||||||||||||||||
Core Adjusted EBITDA margin (Core Adjusted EBITDA divided by Service revenues) | 47 | % | 43 | % | 400 bps | 46 | % | 43 | % | 300 bps | |||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(in millions) | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | |||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 4,355 | $ | 4,209 | $ | 146 | 3 | % | $ | 8,406 | $ | 8,054 | $ | 352 | 4 | % | |||||||||||||||||||||||||||||||
Net cash used in investing activities | (1,487) | (2,559) | 1,072 | (42) | % | (3,215) | (7,651) | 4,436 | (58) | % | |||||||||||||||||||||||||||||||||||||
Net cash used in financing activities | (784) | (1,744) | 960 | (55) | % | (3,057) | (3,880) | 823 | (21) | % | |||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | 2022 | $ | % | 2023 | 2022 | $ | % | |||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 4,355 | $ | 4,209 | $ | 146 | 3 | % | $ | 8,406 | $ | 8,054 | $ | 352 | 4 | % | |||||||||||||||||||||||||||||||
Cash purchases of property and equipment, including capitalized interest | (2,789) | (3,572) | 783 | (22) | % | (5,790) | (6,953) | 1,163 | (17) | % | |||||||||||||||||||||||||||||||||||||
Proceeds from sales of tower sites | 2 | — | 2 | NM | 8 | — | 8 | NM | |||||||||||||||||||||||||||||||||||||||
Proceeds related to beneficial interests in securitization transactions | 1,309 | 1,121 | 188 | 17 | % | 2,654 | 2,306 | 348 | 15 | % | |||||||||||||||||||||||||||||||||||||
Adjusted Free Cash Flow | $ | 2,877 | $ | 1,758 | $ | 1,119 | 64 | % | $ | 5,278 | $ | 3,407 | $ | 1,871 | 55 | % | |||||||||||||||||||||||||||||||
Net cash provided by operating activities margin (Net cash provided by operating activities divided by Service revenues) | 28 | % | 27 | % | 100 bps | 27 | % | 26 | % | 100 bps | |||||||||||||||||||||||||||||||||||||
Adjusted Free Cash Flow margin (Adjusted Free Cash Flow divided by Service revenues) | 18 | % | 11 | % | 700 bps | 17 | % | 11 | % | 600 bps | |||||||||||||||||||||||||||||||||||||
(in millions, except share and per share amounts) | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that may yet be Purchased Under the Plans or Programs (1) | |||||||||||||||||||
April 1, 2023 - April 30, 2023 | 7,238,721 | $ | 147.62 | 7,238,721 | $ | 5,166 | |||||||||||||||||
May 1, 2023 - May 31, 2023 | 10,318,210 | 140.53 | 10,318,210 | 3,716 | |||||||||||||||||||
June 1, 2023 - June 30, 2023 | 7,626,907 | 132.06 | 7,626,907 | 2,709 | |||||||||||||||||||
Total | 25,183,838 | 25,183,838 |
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Exhibit Description | Form | Date of First Filing | Exhibit Number | Filed Herein | |||||||||||||||||||||||||||
4.1 | 8-K | 5/11/2023 | 4.3 | |||||||||||||||||||||||||||||
4.2 | 8-K | 5/11/2023 | 4.4 | |||||||||||||||||||||||||||||
4.3 | 8-K | 5/11/2023 | 4.5 | |||||||||||||||||||||||||||||
10.1* | X | |||||||||||||||||||||||||||||||
10.2* | X | |||||||||||||||||||||||||||||||
10.3* | X | |||||||||||||||||||||||||||||||
10.4* | X | |||||||||||||||||||||||||||||||
10.5* | DEF 14A | 4/28/2023 | Annex A | |||||||||||||||||||||||||||||
10.6* | DEF 14A | 4/28/2023 | Annex B | |||||||||||||||||||||||||||||
22.1 | X | |||||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||
32.1** | X | |||||||||||||||||||||||||||||||
32.2** | X | |||||||||||||||||||||||||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||||||||||||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document. | X | ||||||||||||||||||||||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | X | ||||||||||||||||||||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | X | ||||||||||||||||||||||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | X | ||||||||||||||||||||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase. | X | ||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (the cover page XBRL tags) |
* | Indicates a management contract or compensatory plan or arrangement. | |||||||
** | Furnished herein. | |||||||
SIGNATURES |
T-MOBILE US, INC. | |||||||||||
July 27, 2023 | /s/ Peter Osvaldik | ||||||||||
Peter Osvaldik | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
(Principal Financial Officer and Authorized Signatory) |
T-MOBILE US, INC. 2023 INCENTIVE AWARD PLAN |
Participant: | [____] | ||||
Grant Date: | [____] | ||||
Number of RSUs: | [____] | ||||
Vesting Schedule: |
T-MOBILE US, INC. | PARTICIPANT | |||||||||||||
By: | ||||||||||||||
Name: | [Participant Name] | |||||||||||||
Title: |
T-MOBILE US, INC. 2023 INCENTIVE AWARD PLAN |
Participant: | [____] | ||||
Grant Date: | [____] | ||||
Number of RSUs (at target): | [____] | ||||
Vesting Schedule: |
T-MOBILE US, INC. | PARTICIPANT | |||||||||||||
By: | ||||||||||||||
Name: | [Participant Name] | |||||||||||||
Title: |
T-MOBILE US, INC. 2023 INCENTIVE AWARD PLAN |
Participant: | [____] | ||||
Grant Date: | [____] | ||||
Number of RSUs (at target): | [____] | ||||
Vesting Schedule: |
T-MOBILE US, INC. | PARTICIPANT | |||||||||||||
By: | ||||||||||||||
Name: | [Participant Name] | |||||||||||||
Title: |
T-MOBILE US, INC. 2023 INCENTIVE AWARD PLAN |
Participant: | [____] | ||||
Grant Date: | [____] | ||||
Number of RSUs: | [____]1 | ||||
Vesting Schedule: |
Description of Notes | ||
3.500% senior notes due 2025 | ||
1.500% senior notes due 2026 | ||
2.250% senior notes due 2026 | ||
2.625% senior notes due 2026 | ||
3.750% senior notes due 2027 | ||
5.375% senior notes due 2027 | ||
4.750% senior notes due 2028 | ||
4.750% senior notes due 2028-1 held by affiliate | ||
2.050% senior notes due 2028 | ||
4.950% senior notes due 2028 | ||
4.800% senior notes due 2028 | ||
2.625% senior notes due 2029 | ||
2.400% senior notes due 2029 | ||
3.375% senior notes due 2029 | ||
3.875% senior notes due 2030 | ||
2.550% senior notes due 2031 | ||
2.875% senior notes due 2031 | ||
3.500% senior notes due 2031 | ||
2.250% senior notes due 2031 | ||
2.700% senior notes due 2032 | ||
5.200% senior notes due 2033 | ||
5.050% senior notes due 2033 | ||
4.375% senior notes due 2040 | ||
3.000% senior notes due 2041 | ||
4.500% senior notes due 2050 | ||
3.300% senior notes due 2051 | ||
3.400% senior notes due 2052 | ||
5.650% senior notes due 2053 | ||
5.750% Senior Notes due 2054 | ||
3.600% senior notes due 2060 | ||
5.800% senior notes due 2062 |
Description of Notes | ||
7.875% senior notes due 2023 | ||
7.125% senior notes due 2024 | ||
7.625% senior notes due 2025 | ||
7.625% senior notes due 2026 |
Description of Notes | ||
6.875% senior notes due 2028 | ||
8.750% senior notes due 2032 |
Name of Subsidiary | Jurisdiction of Organization | Obligor Type | ||||||
American Telecasting of Seattle, LLC | Delaware | Guarantor | ||||||
APC Realty and Equipment Company, LLC | Delaware | Guarantor | ||||||
Assurance Wireless of South Carolina, LLC | Delaware | Guarantor | ||||||
Assurance Wireless USA, L.P. | Delaware | Guarantor | ||||||
ATI Sub, LLC | Delaware | Guarantor | ||||||
Clear Wireless LLC | Nevada | Guarantor | ||||||
Clearwire Communications LLC | Delaware | Guarantor | ||||||
Clearwire Legacy LLC | Delaware | Guarantor | ||||||
Clearwire Spectrum Holdings II LLC | Nevada | Guarantor | ||||||
Clearwire Spectrum Holdings III LLC | Nevada | Guarantor | ||||||
Clearwire Spectrum Holdings LLC | Nevada | Guarantor | ||||||
Fixed Wireless Holdings, LLC | Delaware | Guarantor | ||||||
IBSV LLC | Delaware | Guarantor | ||||||
MetroPCS California, LLC | Delaware | Guarantor | ||||||
MetroPCS Florida, LLC | Delaware | Guarantor | ||||||
MetroPCS Georgia, LLC | Delaware | Guarantor | ||||||
MetroPCS Massachusetts, LLC | Delaware | Guarantor | ||||||
MetroPCS Michigan, LLC | Delaware | Guarantor | ||||||
MetroPCS Nevada, LLC | Delaware | Guarantor | ||||||
MetroPCS New York, LLC | Delaware | Guarantor | ||||||
MetroPCS Pennsylvania, LLC | Delaware | Guarantor | ||||||
MetroPCS Texas, LLC | Delaware | Guarantor | ||||||
Nextel Retail Stores, LLC | Delaware | Guarantor | ||||||
Nextel South Corp. | Georgia | Guarantor | ||||||
Nextel Systems, LLC | Delaware | Guarantor | ||||||
Nextel West Corp. | Delaware | Guarantor | ||||||
NSAC, LLC | Delaware | Guarantor | ||||||
PRWireless PR, LLC | Delaware | Guarantor | ||||||
PushSpring, LLC | Delaware | Guarantor | ||||||
Sprint Capital Corporation | Delaware | Guarantor | ||||||
Sprint Communications LLC | Delaware | Guarantor | ||||||
Sprint LLC | Delaware | Guarantor | ||||||
Sprint PCS Assets, L.L.C. | Delaware | Guarantor | ||||||
Sprint Solutions LLC | Delaware | Guarantor | ||||||
Sprint Spectrum LLC | Delaware | Guarantor | ||||||
Sprint Spectrum Realty Company, LLC | Delaware | Guarantor | ||||||
SprintCom LLC | Kansas | Guarantor |
T-Mobile Central LLC | Delaware | Guarantor | ||||||
T-Mobile Financial LLC | Delaware | Guarantor | ||||||
T-Mobile Innovations LLC | Delaware | Guarantor | ||||||
T-Mobile Leasing LLC | Delaware | Guarantor | ||||||
T-Mobile License LLC | Delaware | Guarantor | ||||||
T-Mobile Northeast LLC | Delaware | Guarantor | ||||||
T-Mobile Puerto Rico Holdings LLC | Delaware | Guarantor | ||||||
T-Mobile Puerto Rico LLC | Delaware | Guarantor | ||||||
T-Mobile Resources LLC | Delaware | Guarantor | ||||||
T-Mobile South LLC | Delaware | Guarantor | ||||||
T-Mobile USA, Inc. | Delaware | Issuer | ||||||
T-Mobile West LLC | Delaware | Guarantor | ||||||
TDI Acquisition Sub, LLC | Delaware | Guarantor | ||||||
TMUS International LLC | Delaware | Guarantor | ||||||
TVN Ventures LLC | Delaware | Guarantor | ||||||
VMU GP, LLC | Delaware | Guarantor | ||||||
WBSY Licensing, LLC | Delaware | Guarantor |
/s/ G. Michael Sievert | ||
G. Michael Sievert Chief Executive Officer |
/s/ Peter Osvaldik | ||
Peter Osvaldik Executive Vice President and Chief Financial Officer |
/s/ G. Michael Sievert | ||
G. Michael Sievert Chief Executive Officer |
/s/ Peter Osvaldik | ||
Peter Osvaldik Executive Vice President and Chief Financial Officer |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 151 | $ 167 |
Allowance for credit losses and imputed discount current | 623 | 667 |
Allowance for credit losses and imputed discount noncurrent | $ 131 | $ 144 |
Common stock, par value (in USD per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 1,261,489,287 | 1,256,876,527 |
Common stock, shares outstanding (in shares) | 1,180,398,748 | 1,233,960,078 |
Treasury stock, at cost (in shares) | 81,090,539 | 22,916,449 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Income Statement [Abstract] | ||||
Cash flow hedges, tax effect | $ 13 | $ 13 | $ 27 | $ 26 |
Foreign currency translation adjustment, tax effect | $ 0 | $ (1) | $ 0 | $ (1) |
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Cash Flows [Abstract] | ||||
Capitalized interest | $ (14) | $ (13) | $ (28) | $ (28) |
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | 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, 2022. 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 (“VIEs”) where we are deemed to be the primary beneficiary and VIEs which cannot be deconsolidated, such as those related to our obligations to pay for the management and operation of certain of our wireless communications tower sites. 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 that affect the financial statements and accompanying notes. Estimates are based on historical experience, where applicable, and other assumptions that management believes are reasonable under the circumstances. Estimates are inherently subject to judgment and actual results could differ from those estimates. On September 6, 2022, Sprint Communications LLC, a Kansas limited liability company and wholly owned subsidiary of the Company (“Sprint Communications”), Sprint LLC, a Delaware limited liability company and wholly owned subsidiary of the Company, and Cogent Infrastructure, Inc., a Delaware corporation (the “Buyer”) and a wholly owned subsidiary of Cogent Communications Holdings, Inc., entered into a Membership Interest Purchase Agreement (the “Wireline Sale Agreement”), pursuant to which the Buyer agreed to acquire the U.S. long-haul fiber network and operations (including the non-U.S. extensions thereof) of Sprint Communications and its subsidiaries (the “Wireline Business”). Such transactions contemplated by the Wireline Sale Agreement are collectively referred to as the “Wireline Transaction.” On May 1, 2023, the Buyer and the Company completed the Wireline Transaction (the “Closing”). The assets and liabilities of the Wireline Business disposal group were classified as held for sale and presented within Other current assets and Other current liabilities on our Condensed Consolidated Balance Sheets as of December 31, 2022. The fair value of the Wireline Business disposal group, less costs to sell, was reassessed during each reporting period it remained classified as held for sale, and any remeasurement to the lower of carrying amount or fair value less costs to sell was reported as an adjustment included within Loss (gain) on disposal group held for sale on our Condensed Consolidated Statements of Comprehensive Income (Loss). Unless otherwise specified, the amounts and information presented as of December 31, 2022, in the Notes to the Condensed Consolidated Financial Statements include assets and liabilities that were classified as held for sale. Accounting Pronouncements Adopted During the Current Year Troubled Debt Restructurings and Vintage Disclosures In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The standard eliminates the accounting guidance within ASC 310-40 for troubled debt restructurings by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, for public business entities, the standard requires disclosure of current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. As of January 1, 2023, we have adopted this standard, and it was applied prospectively after this date. This standard did not have a material impact on our condensed consolidated financial statements as of and for the three and six months ended June 30, 2023.
|
Business Combination |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Note 2 – Business Combination On March 9, 2023, we entered into a Merger and Unit Purchase Agreement for the acquisition of 100% of the outstanding equity of Ka’ena Corporation and its subsidiaries including, among others, Mint Mobile LLC, for a maximum purchase price of $1.35 billion to be paid out 39% in cash and 61% in shares of T-Mobile common stock. The purchase price is variable dependent upon specified performance indicators of Ka’ena Corporation during certain periods before and after closing and consists of an upfront payment at closing of the transaction, subject to certain agreed-upon adjustments, and a variable earnout payable 24 months after closing of the transaction. The upfront payment is estimated to be approximately $950 million, before working capital adjustments. The acquisition is subject to certain customary closing conditions, including certain regulatory approvals, and is expected to close by the end of 2023.
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Receivables and Related Allowance for Credit Losses |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables and Related Allowance for Credit Losses | Note 3 – Receivables and Related Allowance for Credit Losses We maintain an allowance for credit losses by applying an expected credit loss model. Each period, management assesses the appropriateness of the level of allowance for credit losses by considering credit risk inherent within each portfolio segment as of the end of the period. We consider a receivable past due when a customer has not paid us by the contractually specified payment due date. Account balances are written off against the allowance for credit losses if collection efforts are unsuccessful and the receivable balance is deemed uncollectible (customer default), based on factors such as customer credit ratings as well as the length of time the amounts are past due. Our portfolio of receivables is comprised of two portfolio segments: accounts receivable and equipment installment plan (“EIP”) receivables. Accounts Receivable Portfolio Segment Accounts receivable balances are predominately comprised of amounts currently due from customers (e.g., for wireless communications services and monthly device lease payments), device insurance administrators, wholesale partners, non-consolidated affiliates, other carriers and third-party retail channels. We estimate credit losses associated with our accounts receivable portfolio segment using an expected credit loss model, which utilizes an aging schedule methodology based on historical information and adjusted for asset-specific considerations, current economic conditions and reasonable and supportable forecasts. Our approach considers a number of factors, including our overall historical credit losses and payment experience, as well as current collection trends such as write-off frequency and severity. We also consider other qualitative factors such as current and forecasted macroeconomic conditions. We consider the need to adjust our estimate of credit losses for reasonable and supportable forecasts of future macroeconomic conditions. To do so, we monitor external forecasts of changes in real U.S. gross domestic product and forecasts of consumer credit behavior for comparable credit exposures. We also periodically evaluate other macroeconomic indicators such as unemployment rates to assess their level of correlation with our historical credit loss statistics. EIP Receivables Portfolio Segment Based upon customer credit profiles at the time of customer origination, we classify the EIP receivables segment into two customer classes of “Prime” and “Subprime.” Prime customer receivables are those with lower credit risk and Subprime customer receivables are those with higher credit risk. Customers may be required to make a down payment on their equipment purchases if their assessed credit risk exceeds established underwriting thresholds. In addition, certain customers within the Subprime category may be required to pay a deposit. To determine a customer’s credit profile and assist in determining their credit class, we use a proprietary credit scoring model that measures the credit quality of a customer leveraging several factors, such as credit bureau information and consumer credit risk scores, as well as service and device plan characteristics. EIP receivables had a combined weighted-average effective interest rate of 9.3% and 8.0% as of June 30, 2023, and December 31, 2022, respectively. The following table summarizes the EIP receivables, including imputed discounts and related allowance for credit losses:
Many of our loss estimation techniques rely on delinquency-based models; therefore, delinquency is an important indicator of credit quality in the establishment of our allowance for credit losses for EIP receivables. We manage our EIP receivables portfolio segment using delinquency and customer credit class as key credit quality indicators. The following table presents the amortized cost of our EIP receivables by delinquency status, customer credit class and year of origination as of June 30, 2023:
We estimate credit losses on our EIP receivables segment by applying an expected credit loss model, which relies on historical loss data adjusted for current conditions to calculate default probabilities or an estimate for the frequency of customer default. Our assessment of default probabilities or frequency includes receivables delinquency status, historical loss experience, how long the receivables have been outstanding and customer credit ratings, as well as customer tenure. We multiply these estimated default probabilities by our estimated loss given default, which is the estimated amount of default or the severity of loss. As we do for our accounts receivable portfolio segment, we consider the need to adjust our estimate of credit losses on EIP receivables for reasonable and supportable forecasts of economic conditions through monitoring external forecasts and periodic internal statistical analyses. The following table presents write-offs of our EIP receivables by year of origination for the six months ended June 30, 2023:
Activity for the six months ended June 30, 2023 and 2022, in the allowance for credit losses and unamortized imputed discount balances for the accounts receivable and EIP receivables segments were as follows:
Off-Balance-Sheet Credit Exposures We do not have material off-balance-sheet credit exposures as of June 30, 2023. In connection with the sales of certain service accounts receivable and EIP receivables pursuant to the sale arrangements, we have deferred purchase price assets included on our Condensed Consolidated Balance Sheets measured at fair value that are based on a discounted cash flow model using Level 3 inputs, including customer default rates and credit worthiness, dilutions and recoveries. See Note 4 – Sales of Certain Receivables for further information.
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Sales of Certain Receivables |
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Sales of Certain Receivables | Note 4 – Sales of Certain Receivables We regularly enter into transactions to sell certain service accounts receivable and EIP receivables. The transactions, including our continuing involvement with the sold receivables and the respective impacts to our condensed consolidated financial statements, are described below. Sales of EIP Receivables Overview of the Transaction In 2015, we entered into an arrangement to sell certain EIP receivables on a revolving basis (the “EIP sale arrangement”), which has been revised and extended from time to time. As of both June 30, 2023, and December 31, 2022, the EIP sale arrangement provided funding of $1.3 billion. In connection with this EIP sale arrangement, we formed a wholly owned subsidiary, which qualifies as a bankruptcy remote entity (the “EIP BRE”). We consolidate the EIP BRE under the VIE model. The following table summarizes the carrying amounts and classification of assets, which consist primarily of the deferred purchase price, included on our Condensed Consolidated Balance Sheets with respect to the EIP BRE:
Sales of Service Accounts Receivable Overview of the Transaction In 2014, we entered into an arrangement to sell certain service accounts receivable on a revolving basis (the “service receivable sale arrangement”). On February 28, 2023, we extended the scheduled expiration date of the service receivable sale arrangement to February 27, 2024. As of both June 30, 2023, and December 31, 2022, the service receivable sale arrangement provided funding of $775 million. In connection with the service receivable sale arrangement, we formed a wholly owned subsidiary, which qualifies as a bankruptcy remote entity, to sell service accounts receivable (the “Service BRE”). We consolidate the Service BRE under the VIE model. The following table summarizes the carrying amounts and classification of assets, which consist primarily of the deferred purchase price, and liabilities included on our Condensed Consolidated Balance Sheets with respect to the Service BRE:
Sales of Receivables The following table summarizes the impact of the sale of certain service accounts receivable and EIP receivables on our Condensed Consolidated Balance Sheets:
At inception, we elected to measure the deferred purchase price at fair value with changes in fair value included in Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income (Loss). The fair value of the deferred purchase price is determined based on a discounted cash flow model which uses primarily Level 3 inputs, including estimated customer default rates. As of June 30, 2023, and December 31, 2022, our deferred purchase price related to the sales of service accounts receivable and EIP receivables was $710 million and $692 million, respectively. We recognized losses from sales of receivables, including changes in fair value of the deferred purchase price, of $51 million and $61 million for the three months ended June 30, 2023 and 2022, respectively, and $89 million and $108 million for the six months ended June 30, 2023 and 2022, respectively, in Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income (Loss). Continuing Involvement Pursuant to the sale arrangements described above, we have continuing involvement with the service accounts receivable and EIP receivables we sell as we service the receivables, are required to repurchase certain receivables, including ineligible receivables, aged receivables and receivables where a write-off is imminent, and may be responsible for absorbing credit losses through reduced collections on our deferred purchase price assets. We continue to service the customers and their related receivables, including facilitating customer payment collection, in exchange for a monthly servicing fee. As the receivables are sold on a revolving basis, the customer payment collections on sold receivables may be reinvested in new receivable sales. At the direction of the purchasers of the sold receivables, we apply the same policies and procedures while servicing the sold receivables as we apply to our owned receivables, and we continue to maintain normal relationships with our customers.
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Spectrum License Transactions |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Spectrum License Transactions | Note 5 – Spectrum License Transactions The following table summarizes our spectrum license activity for the six months ended June 30, 2023:
Cash payments to acquire spectrum licenses and payments for costs to clear spectrum are included in Purchases of spectrum licenses and other intangible assets, including deposits, on our Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2023. Spectrum Transactions In September 2022, the Federal Communications Commission (“FCC”) announced that we were the winning bidder of 7,156 licenses in Auction 108 (2.5 GHz spectrum) for an aggregate price of $304 million. At inception of Auction 108 in June 2022, we deposited $65 million. We paid the FCC the remaining $239 million for the licenses won in the auction in September 2022. The aggregate cash payments made to the FCC are included in Other assets on our Condensed Consolidated Balance Sheets as of June 30, 2023, and will remain there until the corresponding licenses are received. The timing of when the licenses will be issued will be determined by the FCC after all post-auction procedures have been completed. As of June 30, 2023, the activities that are necessary to get the C-band, 3.45 GHz and 2.5 GHz spectrum, acquired pursuant to FCC Auctions 107, 110 and 108, ready for its intended use have not begun; as such, capitalization of the interest associated with the costs of deploying these spectrum licenses has not begun. License Purchase Agreements DISH Network Corporation On July 1, 2020, we and DISH Network Corporation (“DISH”) entered into a license purchase agreement (the “DISH License Purchase Agreement”) pursuant to which DISH agreed to purchase certain 800 MHz spectrum licenses for a total of approximately $3.6 billion. The closing of the sale of spectrum under the DISH License Purchase Agreement remains subject to FCC approval. The application for FCC approval was required under the agreement to be submitted by the parties no later than June 1, 2023. As of July 27, 2023, DISH has failed to take the actions necessary to file the application as required under the DISH License Purchase Agreement; however, at the request of the Department of Justice, we have agreed not to take action to terminate the DISH License Purchase Agreement until on or about August 11, 2023. We believe the additional time is also prudent to allow the parties to determine whether an alternative arrangement is feasible, and we continue to discuss options with DISH about possible alternatives to the sale of the spectrum on the terms set forth in the DISH License Purchase Agreement. If the FCC filing is made before the agreement is terminated and the FCC subsequently approves the transaction, the parties will be required to close the agreement within five days of receiving such FCC approval. In the event we terminate the DISH License Purchase Agreement due to DISH’s breach or DISH later fails to deliver the purchase price following the satisfaction or waiver of all closing conditions, DISH is liable to pay us a fee of $72 million as our sole remedy; provided, however that if the transaction has not closed by April 1, 2024, other than due to the breach by a party of its terms, both parties will have the right to terminate the License Purchase Agreement and in such event no termination fee would be payable to us. Additionally, if DISH does not exercise the option to purchase the 800 MHz spectrum licenses, we are required, unless otherwise approved under the complaint and proposed final judgment agreed to by us, Deutsche Telekom AG (“DT”), Sprint Corporation, now known as Sprint LLC (“Sprint”), SoftBank Group Corp. (“SoftBank”) and DISH with the U.S. District Court for the District of Columbia, which was approved by the Court on April 1, 2020, to offer the licenses for sale through an auction. If the specified minimum price of $3.6 billion is not met in the auction, we would be relieved of the obligation to sell the licenses. Channel 51 License Co LLC and LB License Co, LLC On August 8, 2022, we, Channel 51 License Co LLC and LB License Co, LLC (together with Channel 51 License Co LLC, the “Sellers”) entered into License Purchase Agreements pursuant to which we will acquire spectrum in the 600 MHz band from the Sellers in exchange for total cash consideration of $3.5 billion. The licenses will be acquired without any associated networks but are currently being utilized by us through exclusive leasing arrangements with the Sellers. On March 30, 2023, we and the Sellers entered into Amended and Restated License Purchase Agreements pursuant to which we and the Sellers agreed to separate the transaction into two tranches of licenses, with the closings on the acquisitions of certain licenses in Chicago, Dallas and New Orleans (together representing $492 million of the aggregate $3.5 billion cash consideration) being deferred in order to potentially expedite the regulatory approval process for the remainder of the licenses. The licenses being acquired by us, and the total consideration being paid for the licenses, remains the same. We anticipate that the first closing will occur in late 2023 and that the second closing (on the deferred licenses) will occur in 2024. The parties have agreed that each of the closings will occur within 180 days after the receipt of the applicable required regulatory approvals, and payment of each portion of the aggregate $3.5 billion purchase price will occur no later than 40 days after the date of each respective closing.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Note 6 – Fair Value Measurements The carrying values of Cash and cash equivalents, Accounts receivable and Accounts payable and accrued liabilities approximate fair value due to the short-term maturities of these instruments. The carrying values of EIP receivables approximate fair value as the receivables are recorded at their present value using an imputed interest rate. Derivative Financial Instruments Periodically, we use derivatives to manage exposure to market risk, such as interest rate risk. We designate certain derivatives as hedging instruments in a qualifying hedge accounting relationship to help minimize significant, unplanned fluctuations in cash flows or fair values caused by designated market risks, such as interest rate volatility. We do not use derivatives for trading or speculative purposes. Cash flows associated with qualifying hedge derivative instruments are presented in the same category on our Condensed Consolidated Statements of Cash Flows as the item being hedged. For fair value hedges, the change in the fair value of the derivative instruments is recognized in earnings through the same income statement line item as the change in the fair value of the hedged item. For cash flow hedges, the change in the fair value of the derivative instruments is reported in Other comprehensive income and recognized in earnings when the hedged item is recognized in earnings, again, through the same income statement line item. We did not have any significant derivative instruments outstanding as of June 30, 2023, or December 31, 2022. Interest Rate Lock Derivatives In April 2020, we terminated our interest rate lock derivatives entered into in October 2018. Aggregate changes in the fair value of the interest rate lock derivatives, net of tax and amortization, of $1.2 billion and $1.3 billion are presented in Accumulated other comprehensive loss on our Condensed Consolidated Balance Sheets as of June 30, 2023, and December 31, 2022, respectively. For the three months ended June 30, 2023 and 2022, $55 million and $50 million, respectively, and for the six months ended June 30, 2023 and 2022, $108 million and $100 million, respectively, were amortized from Accumulated other comprehensive loss into Interest expense, net, on our Condensed Consolidated Statements of Comprehensive Income (Loss). We expect to amortize $227 million of the Accumulated other comprehensive loss associated with the derivatives into Interest expense, net, over the 12 months ending June 30, 2024. Deferred Purchase Price Assets In connection with the sales of certain service and EIP accounts receivable pursuant to the sale arrangements, we have deferred purchase price assets measured at fair value that are based on a discounted cash flow model using unobservable Level 3 inputs, including customer default rates. See Note 4 – Sales of Certain Receivables for further information. The carrying amounts of our deferred purchase price assets, which are measured at fair value on a recurring basis and are included on our Condensed Consolidated Balance Sheets, were $710 million and $692 million as of June 30, 2023, and December 31, 2022, respectively. Debt The fair value of our Senior Notes and spectrum-backed Senior Secured Notes to third parties was determined based on quoted market prices in active markets, and therefore were classified as Level 1 within the fair value hierarchy. The fair value of our Senior Notes to affiliates was determined based on a discounted cash flow approach using market interest rates of instruments with similar terms and maturities and an estimate for our standalone credit risk. Accordingly, our Senior Notes to affiliates were classified as Level 2 within the fair value hierarchy. The fair value of our asset-backed notes (“ABS Notes”) was primarily based on quoted prices in inactive markets for identical instruments and observable changes in market interest rates, both of which are Level 2 inputs. Accordingly, our ABS Notes were classified as Level 2 within the fair value hierarchy. Although we have determined the estimated fair values using available market information and commonly accepted valuation methodologies, considerable judgment was required in interpreting market data to develop fair value estimates for the Senior Notes to affiliates and ABS Notes. The fair value estimates were based on information available as of June 30, 2023, and December 31, 2022. As such, our estimates are not necessarily indicative of the amount we could realize in a current market exchange. The carrying amounts and fair values of our short-term and long-term debt included on our Condensed Consolidated Balance Sheets were as follows: (1) Excludes $20 million as of December 31, 2022, in other financial liabilities as the carrying values approximate fair value, primarily due to the short-term maturities of these instruments.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Note 7 – Debt The following table sets forth the debt balances and activity as of, and for the six months ended, June 30, 2023:
(1)Issuances and borrowings and reclassifications are recorded net of accrued or paid issuance costs, discounts and premiums. (2)Other includes the amortization of premiums, discounts, debt issuance costs and consent fees. Our effective interest rate, excluding the impact of derivatives and capitalized interest, was approximately 4.0% and 3.8% on weighted-average debt outstanding of $76.4 billion and $71.4 billion for the three months ended June 30, 2023 and 2022, respectively, and 4.0% and 3.9% on weighted-average debt outstanding of $74.9 billion and $72.6 billion for the six months ended June 30, 2023 and 2022, respectively. The weighted-average debt outstanding was calculated by applying an average of the monthly ending balances of total short-term and long-term debt to third parties and short-term and long-term debt to affiliates, net of unamortized premiums, discounts, debt issuance costs and consent fees. Issuances and Borrowings During the six months ended June 30, 2023, we issued the following Senior Notes:
Note Repayments During the six months ended June 30, 2023, we made the following repayments:
Asset-backed Notes Our ABS Notes are secured by $1.0 billion of gross EIP receivables and future collections on such receivables. The ABS Notes issued and the assets securing this debt are included on our Condensed Consolidated Balance Sheets. The expected maturities of our ABS Notes are as follows:
Variable Interest Entities In connection with issuing the ABS Notes in October 2022, we formed a wholly owned subsidiary, which qualifies as a bankruptcy remote entity (the “ABS BRE”), and a trust (the “ABS Trust” and together with the ABS BRE, the “ABS Entities”), in which the ABS BRE holds a residual interest. The ABS Entities meet the definition of a VIE for which we have determined that we are the primary beneficiary as we have the power to direct the activities of the ABS Entities that most significantly impact their performance. Accordingly, we include the balances and results of operations of the ABS Entities in our condensed consolidated financial statements. The following table summarizes the carrying amounts and classification of assets and liabilities included in our Condensed Consolidated Balance Sheets with respect to the ABS Entities:
See Note 3 – Receivables and Related Allowance for Credit Losses for additional information on the EIP receivables used to secure the ABS Notes. Restricted Cash Certain provisions of our debt agreements require us to maintain specified cash collateral balances. Amounts associated with these balances are considered to be restricted cash. See Note 15 - Additional Financial Information for our reconciliation of Cash and cash equivalents, including restricted cash and cash held for sale. Commercial Paper Subsequent to June 30, 2023, on July 25, 2023, we established an unsecured short-term commercial paper program with the ability to borrow up to $2.0 billion from time to time. This program will supplement our other available external financing arrangements, and proceeds are expected to be used for general corporate purposes. As of July 27, 2023, we have not issued any amount under this program.
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Tower Obligations |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tower Obligations | Note 8 – Tower Obligations Existing CCI Tower Lease Arrangements In 2012, we conveyed to Crown Castle International Corp. (“CCI”) the exclusive right to manage and operate approximately 6,200 tower sites (“CCI Lease Sites”) via a master prepaid lease with site lease terms ranging from 23 to 37 years. CCI has fixed-price purchase options for the CCI Lease Sites totaling approximately $2.0 billion, exercisable annually on a per-tranche basis at the end of the lease term during the period from December 31, 2035, through December 31, 2049. If CCI exercises its purchase option for any tranche, it must purchase all the towers in the tranche. We lease back a portion of the space at certain tower sites. Assets and liabilities associated with the operation of the tower sites were transferred to special purpose entities (“SPEs”). Assets included ground lease agreements or deeds for the land on which the towers are situated, the towers themselves and existing subleasing agreements with other mobile network operator tenants that lease space at the tower sites. Liabilities included the obligation to pay ground lease rentals, property taxes and other executory costs. We determined the SPEs containing the CCI Lease Sites (“Lease Site SPEs”) are VIEs as they lack sufficient equity to finance their activities. We have a variable interest in the Lease Site SPEs but are not the primary beneficiary as we lack the power to direct the activities that most significantly impact the Lease Site SPEs’ economic performance. These activities include managing tenants and underlying ground leases, performing repair and maintenance on the towers, the obligation to absorb expected losses and the right to receive the expected future residual returns from the purchase option to acquire the CCI Lease Sites. As we determined that we are not the primary beneficiary and do not have a controlling financial interest in the Lease Site SPEs, the Lease Site SPEs are not included on our condensed consolidated financial statements. However, we also considered if this arrangement resulted in the sale of the CCI Lease Sites for which we would derecognize the tower assets. By assessing whether control had transferred, we concluded that transfer of control criteria, as discussed in the revenue standard, were not met. Accordingly, we recorded this arrangement as a financing whereby we recorded debt, a financial obligation, and the CCI Lease Sites tower assets remained on our Condensed Consolidated Balance Sheets. We recorded long-term financial obligations in the amount of the net proceeds received and recognize interest on the tower obligations. The tower obligations are increased by interest expense and amortized through contractual leaseback payments made by us to CCI and through net cash flows generated and retained by CCI from the operation of the tower sites. Acquired CCI Tower Lease Arrangements Prior to our merger (the “Merger”) with Sprint, Sprint entered into a lease-out and leaseback arrangement with Global Signal Inc., a third party that was subsequently acquired by CCI, that conveyed to CCI the exclusive right to manage and operate approximately 6,400 tower sites (“Master Lease Sites”) via a master prepaid lease. These agreements were assumed upon the close of the Merger, at which point the remaining term of the lease-out was approximately 17 years with no renewal options. CCI has a fixed price purchase option for all (but not less than all) of the leased or subleased sites for approximately $2.3 billion, exercisable one year prior to the expiration of the agreement and ending 120 days prior to the expiration of the agreement. We lease back a portion of the space at certain tower sites. We considered if this arrangement resulted in the sale of the Master Lease Sites for which we would derecognize the tower assets. By assessing whether control had transferred, we concluded that transfer of control criteria, as discussed in the revenue standard, were not met. Accordingly, we recorded this arrangement as a financing whereby we recorded debt, a financial obligation, and the Master Lease Sites tower assets remained on our Condensed Consolidated Balance Sheets. As of the closing date of the Merger, we recognized Property and equipment with a fair value of $2.8 billion and tower obligations related to amounts owed to CCI under the leaseback of $1.1 billion. Additionally, we recognized $1.7 billion in Other long-term liabilities associated with contract terms that are unfavorable to current market rates, which include unfavorable terms associated with the fixed-price purchase option in 2037. We recognize interest expense on the tower obligations. The tower obligations are increased by the interest expense and amortized through contractual leaseback payments made by us to CCI. The tower assets are reported in Property and equipment, net on our Condensed Consolidated Balance Sheets and are depreciated to their estimated residual values over the expected useful life of the towers, which is 20 years. Leaseback Arrangement On January 3, 2022, we entered into an agreement (the “Crown Agreement”) with CCI. The Crown Agreement extends the current term of the leasebacks by up to 12 years and modifies the leaseback payments for both the Existing CCI Tower Lease Arrangement and the Acquired CCI Tower Lease Arrangement. As a result of the Crown Agreement, there was an increase in our financing obligation as of the effective date of the Crown Agreement of approximately $1.2 billion, with a corresponding decrease to Other long-term liabilities associated with unfavorable contract terms. The modification resulted in a revised interest rate under the effective interest method for the tower obligations: 11.6% for the Existing CCI Tower Lease Arrangement and 5.3% for the Acquired CCI Tower Lease Arrangement. There were no changes made to either of our master prepaid leases with CCI. The following table summarizes the balances associated with both of the tower arrangements on our Condensed Consolidated Balance Sheets:
Future minimum payments related to the tower obligations are approximately $410 million for the 12-month period ending June 30, 2024, $792 million in total for both of the 12-month periods ending June 30, 2025 and 2026, $798 million in total for both of the 12-month periods ending June 30, 2027 and 2028, and $4.3 billion in total thereafter. We are contingently liable for future ground lease payments through the remaining term of the CCI Lease Sites and the Master Lease Sites. These contingent obligations are not included in Operating lease liabilities as any amount due is contractually owed by CCI based on the subleasing arrangement. Under the arrangement, we remain primarily liable for ground lease payments on approximately 900 sites and have included lease liabilities of $245 million in our Operating lease liabilities as of June 30, 2023.
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Revenue from Contracts with Customers |
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Revenue from Contracts with Customers | Note 9 – Revenue from Contracts with Customers Disaggregation of Revenue We provide wireless communications services to three primary categories of customers: •Postpaid customers generally include customers who are qualified to pay after receiving wireless communications services utilizing phones, High Speed Internet, mobile internet devices, including tablets and hotspots, wearables, DIGITS or other connected devices, including SyncUP and IoT; •Prepaid customers generally include customers who pay for wireless communications services in advance; and •Wholesale customers include Machine-to-Machine and Mobile Virtual Network Operator customers that operate on our network but are managed by wholesale partners. Postpaid service revenues, including postpaid phone revenues and postpaid other revenues, were as follows:
We operate as a single operating segment. The balances presented in each revenue line item on our Condensed Consolidated Statements of Comprehensive Income (Loss) represent categories of revenue from contracts with customers disaggregated by type of product and service. Postpaid and prepaid service revenues also include revenues earned for providing premium services to customers, such as device insurance services. Revenue generated from the lease of mobile communication devices is included in Equipment revenues on our Condensed Consolidated Statements of Comprehensive Income (Loss). Contract Balances The contract asset and contract liability balances from contracts with customers as of June 30, 2023, and December 31, 2022, were as follows:
Contract assets primarily represent revenue recognized for equipment sales with promotional bill credits offered to customers that are paid over time and are contingent on the customer maintaining a service contract. Contract asset balances increased primarily due to an increase in promotions with an extended service contract, partially offset by billings on existing contracts and impairment, which is recognized as bad debt expense. The current portion of our contract assets of approximately $490 million and $356 million as of June 30, 2023, and December 31, 2022, respectively, was included in Other current assets on our Condensed Consolidated Balance Sheets. Contract liabilities are recorded when fees are collected, or we have an unconditional right to consideration (a receivable) in advance of delivery of goods or services. Changes in contract liabilities are primarily related to the activity of prepaid customers. Contract liabilities are primarily included in Deferred revenue on our Condensed Consolidated Balance Sheets. Revenues for the three and six months ended June 30, 2023 and 2022 include the following:
Remaining Performance Obligations As of June 30, 2023, the aggregate amount of transaction price allocated to remaining service performance obligations for postpaid contracts with subsidized devices and promotional bill credits that result in an extended service contract is $1.8 billion. We expect to recognize revenue as the service is provided on these postpaid contracts over an extended contract term of 24 months from the time of origination. Information about remaining performance obligations that are part of a contract that has an original expected duration of one year or less has been excluded from the above, which primarily consists of monthly service contracts. Certain of our wholesale, roaming and service contracts include variable consideration based on usage and performance. This variable consideration has been excluded from the disclosure of remaining performance obligations. As of June 30, 2023, the aggregate amount of the contractual minimum consideration for wholesale, roaming and service contracts is $1.2 billion, $1.8 billion and $4.1 billion for 2023, 2024, and 2025 and beyond, respectively. These contracts have a remaining duration ranging from less than one year to eight years. Contract Costs The balance of deferred incremental costs to obtain contracts with customers was $2.0 billion and $1.9 billion as of June 30, 2023, and December 31, 2022, respectively, and is included in Other assets on our Condensed Consolidated Balance Sheets. Deferred contract costs incurred to obtain postpaid service contracts are amortized over a period of 24 months. The amortization period is monitored to reflect any significant change in assumptions. Amortization of deferred contract costs included in Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income (Loss) were $444 million and $358 million for the three months ended June 30, 2023 and 2022, respectively, and $866 million and $682 million for the six months ended June 30, 2023 and 2022, respectively. The deferred contract cost asset is assessed for impairment on a periodic basis. There were no impairment losses recognized on deferred contract cost assets for the three and six months ended June 30, 2023 and 2022.
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Repurchases of Common Stock |
6 Months Ended |
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Jun. 30, 2023 | |
Equity [Abstract] | |
Repurchases of Common Stock | Note 10 – Repurchases of Common Stock 2022 Stock Repurchase Program On September 8, 2022, our Board of Directors authorized our 2022 Stock Repurchase Program for up to $14.0 billion of our common stock through September 30, 2023 (the “2022 Stock Repurchase Program”). During the three months ended June 30, 2023, we repurchased 25,183,838 shares of our common stock at an average price per share of $140.00 for a total purchase price of $3.5 billion, and during the six months ended June 30, 2023, we repurchased 58,147,778 shares of our common stock at an average price per share of $142.59 for a total purchase price of $8.3 billion, all of which were purchased under the 2022 Stock Repurchase Program. All shares purchased during the six months ended June 30, 2023, were purchased at market price. As of June 30, 2023, we had up to $2.7 billion remaining under the 2022 Stock Repurchase Program. Subsequent to June 30, 2023, from July 1, 2023, through July 21, 2023, we repurchased 3,961,852 shares of our common stock at an average price per share of $139.43 for a total purchase price of $552 million. As of July 21, 2023, we had up to $2.2 billion remaining under the 2022 Stock Repurchase Program
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Wireline |
6 Months Ended |
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Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Wireline | Note 11 – Wireline Sale of the Wireline Business On September 6, 2022, two of our wholly owned subsidiaries, Sprint Communications and Sprint LLC, and Cogent Infrastructure, Inc. entered into the Wireline Sale Agreement, pursuant to which the Buyer agreed to acquire the Wireline Business. The Wireline Sale Agreement provided that, upon the terms and conditions set forth therein, the Buyer agreed to purchase all of the issued and outstanding membership interests (the “Purchased Interests”) of a Delaware limited liability company that holds certain assets and liabilities relating to the Wireline Business. On May 1, 2023, pursuant to the Wireline Sale Agreement, upon the terms and subject to the conditions thereof, we completed the Wireline Transaction. Under the terms of the Wireline Sale Agreement, the parties agreed to a $1 purchase price in consideration for the Purchased Interests, subject to customary adjustments, as well as payments to the Buyer pursuant to an IP transit services agreement totaling $700 million, consisting of (i) $350 million in equal monthly installments during the first year after the Closing and (ii) $350 million in equal monthly installments over the subsequent 42 months. The Buyer paid the Company $61 million at Closing. The Closing of the Wireline Transaction did not have a significant impact on the Loss (gain) on disposal group held for sale on our Condensed Consolidated Statements of Comprehensive Income (Loss). The present value of the $700 million liability for fees payable for IP transit services was recognized and treated as part of the consideration exchanged with the Buyer to complete the disposal transaction, as there is a remote likelihood we will use any more than a de minimis amount of the services under the IP transit services agreement. Therefore, we concluded the cash payment obligations under the IP transit services agreement were part of the consideration paid to the Buyer to facilitate the sale of the Wireline Business, and therefore, included in measuring the fair value less costs to sell of the Wireline Business disposal group. As of June 30, 2023, $308 million and $295 million of this liability, including accrued interest, is presented within Other current liabilities and Other long-term liabilities, respectively, on our Condensed Consolidated Balance Sheets in accordance with the expected timing of the related payments. As of June 30, 2023, $40 million and $31 million for contractual and other payments associated with the Wireline Transaction are presented within Other current liabilities and Other long-term liabilities, respectively, on our Condensed Consolidated Balance Sheets in accordance with the expected timing of the related payments. During the six months ended June 30, 2023, we recognized a pre-tax gain of $25 million, which is included within Loss (gain) on disposal group held for sale on our Condensed Consolidated Statements of Comprehensive Income (Loss). This gain was primarily due to a decrease in our accrual of estimated costs to sell. We do not consider the sale of the Wireline Business to be a strategic shift that will have a major effect on the Company’s operations and financial results, and therefore the Wireline Business did not qualify for reporting as a discontinued operation. 2022 Wireline Impairment During the three months ended June 30, 2022, we determined that the retirement of the legacy Sprint CDMA and LTE wireless networks triggered the need to assess the Wireline long-lived assets for impairment, as these assets no longer support our wireless network and the associated customers and cash flows in a significant manner. The results of this assessment indicated that certain Wireline long-lived assets were impaired, and as a result, we recorded noncash impairment expense of $477 million during the three months ended June 30, 2022, of which $258 million was related to Wireline Property and equipment, $212 million was related to Operating lease right-of-use assets and $7 million was related to Other intangible assets. The expense is included within Impairment expense on our Condensed Consolidated Statements of Comprehensive Income (Loss). There was no impairment expense recognized for the three and six months ended June 30, 2023.
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Earnings (Loss) Per Share |
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Earnings (Loss) Per Share | Note 12 – Earnings (Loss) Per Share The computation of basic and diluted earnings (loss) per share was as follows:
(1) Represents the weighted-average SoftBank Specified Shares that are contingently issuable from the Merger date of April 1, 2020, pursuant to a letter agreement dated February 20, 2020, between T-Mobile, SoftBank and DT. As of June 30, 2023, we had authorized 100 million shares of preferred stock, with a par value of $0.00001 per share. There was no preferred stock outstanding as of June 30, 2023 and 2022. Potentially dilutive securities were not included in the computation of diluted earnings (loss) per share if to do so would have been anti-dilutive. The SoftBank Specified Shares Amount of 48,751,557 shares of T-Mobile common stock was determined to be contingent consideration for the Merger and is not dilutive until the defined volume-weighted average price per share is reached.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 – Commitments and Contingencies Purchase Commitments We have commitments for non-dedicated transportation lines with varying expiration terms that generally extend through 2038. In addition, we have commitments to purchase wireless devices, network services, equipment, software, marketing sponsorship agreements and other items in the ordinary course of business, with various terms through 2043. Our purchase commitments are approximately $4.2 billion for the 12-month period ending June 30, 2024, $4.7 billion in total for both of the 12-month periods ending June 30, 2025 and 2026, $2.8 billion in total for both of the 12-month periods ending June 30, 2027 and 2028, and $2.5 billion in total thereafter. These amounts are not reflective of our entire anticipated purchases under the related agreements but are determined based on the non-cancelable quantities or termination amounts to which we are contractually obligated. On March 9, 2023, we entered into a Merger and Unit Purchase Agreement for the acquisition of 100% of the outstanding equity of Ka’ena Corporation and its subsidiaries including, among others, Mint Mobile LLC, for a maximum purchase price of $1.35 billion to be paid out 39% in cash and 61% in shares of T-Mobile common stock. The upfront payment is estimated to be approximately $950 million, before working capital adjustments. The agreement remains subject to regulatory approval and the estimated purchase price is excluded from our reported purchase commitments above. See Note 2 – Business Combination for additional details. Spectrum Leases We lease spectrum from various parties. These leases include service obligations to the lessors. Certain spectrum leases provide for minimum lease payments, additional charges, renewal options and escalation clauses. Leased spectrum agreements have varying expiration terms that generally extend through 2050. We expect that all renewal periods in our spectrum leases will be exercised by us. Certain spectrum leases also include purchase options and right-of-first refusal clauses in which we are provided the opportunity to exercise our purchase option if the lessor receives a purchase offer from a third party. The purchase of the leased spectrum is at our option and therefore the option price is not included in the commitments below. Our spectrum lease and service credit commitments, including renewal periods, are approximately $310 million for the 12-month period ending June 30, 2024, $595 million in total for both of the 12-month periods ending June 30, 2025 and 2026, $658 million in total for both of the 12-month periods ending June 30, 2027 and 2028, and $4.5 billion in total thereafter. On August 8, 2022, we entered into License Purchase Agreements to acquire spectrum in the 600 MHz band from Channel 51 License Co LLC and LB License Co, LLC in exchange for total cash consideration of $3.5 billion. The licenses will be acquired without any associated networks but are currently being utilized by us through exclusive leasing arrangements with the Sellers. On March 30, 2023, we and the Sellers entered into Amended and Restated License Purchase Agreements pursuant to which we and the Sellers agreed to separate the transaction into two tranches of licenses, with the closings on the acquisitions of certain licenses in Chicago, Dallas and New Orleans (together representing $492 million of the aggregate $3.5 billion cash consideration) being deferred in order to potentially expedite the regulatory approval process for the remainder of the licenses. The agreements remain subject to regulatory approval and are excluded from our reported purchase commitments above. See Note 5 – Spectrum License Transactions for additional details. Contingencies and Litigation Litigation and Regulatory Matters We are involved in various lawsuits and disputes, claims, government agency investigations and enforcement actions, and other proceedings (“Litigation and Regulatory Matters”) that arise in the ordinary course of business, which include claims of patent infringement (most of which are asserted by non-practicing entities primarily seeking monetary damages), class actions, and proceedings to enforce FCC or other government agency rules and regulations. Those Litigation and Regulatory Matters are at various stages, and some of them may proceed to trial, arbitration, hearing, or other adjudication that could result in fines, penalties, or awards of monetary or injunctive relief in the coming 12 months if they are not otherwise resolved. We have established an accrual with respect to certain of these matters, where appropriate. The accruals are reflected on our condensed consolidated financial statements, but they are not considered to be, individually or in the aggregate, material. An accrual is established when we believe it is both probable that a loss has been incurred and an amount can be reasonably estimated. For other matters, where we have not determined that a loss is probable or because the amount of loss cannot be reasonably estimated, we have not recorded an accrual due to various factors typical in contested proceedings, including, but not limited to, uncertainty concerning legal theories and their resolution by courts or regulators, uncertain damage theories and demands, and a less than fully developed factual record. For Litigation and Regulatory Matters that may result in a contingent gain, we recognize such gains on our condensed consolidated financial statements when the gain is realized or realizable. We recognize legal costs expected to be incurred in connection with Litigation and Regulatory Matters as they are incurred. Except as otherwise specified below, we do not expect that the ultimate resolution of these Litigation and Regulatory Matters, individually or in the aggregate, will have a material adverse effect on our financial position, but we note that an unfavorable outcome of some or all of the specific matters identified below or other matters that we are or may become involved in could have a material adverse impact on results of operations or cash flows for a particular period. This assessment is based on our current understanding of relevant facts and circumstances. As such, our view of these matters is subject to inherent uncertainties and may change in the future. On February 28, 2020, we received a Notice of Apparent Liability for Forfeiture and Admonishment from the FCC, which proposed a penalty against us for allegedly violating section 222 of the Communications Act and the FCC’s regulations governing the privacy of customer information. In the first quarter of 2020, we recorded an accrual for an estimated payment amount. We maintained the accrual as of June 30, 2023, and that accrual was included in Accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets. On April 1, 2020, in connection with the closing of the Merger, we assumed the contingencies and litigation matters of Sprint. Those matters include a wide variety of disputes, claims, government agency investigations and enforcement actions, and other proceedings. These matters include, among other things, certain ongoing FCC and state government agency investigations into Sprint’s Lifeline program. In September 2019, Sprint notified the FCC that it had claimed monthly subsidies for serving subscribers even though these subscribers may not have met usage requirements under Sprint's usage policy for the Lifeline program, due to an inadvertent coding issue in the system used to identify qualifying subscriber usage that occurred in July 2017 while the system was being updated. Sprint has made a number of payments to reimburse the federal government and certain states for excess subsidy payments. We note that pursuant to Amendment No. 2, dated as of February 20, 2020, to the Business Combination Agreement, dated as of April 29, 2018, by and among the Company, Sprint and the other parties named therein (as amended, the “Business Combination Agreement”), SoftBank agreed to indemnify us against certain specified matters and losses, including those relating to the Lifeline matters described above. Resolution of these matters could require us to make additional reimbursements and pay additional fines and penalties, which we do not expect to have a significant impact on our financial results. We expect that any additional liabilities related to these indemnified matters would be indemnified and reimbursed by SoftBank. On June 1, 2021, a putative shareholder class action and derivative lawsuit was filed in the Delaware Court of Chancery, Dinkevich v. Deutsche Telekom AG, et al., Case No. C.A. No. 2021-0479, against DT, SoftBank and certain of our current and former officers and directors, asserting breach of fiduciary duty claims relating to the repricing amendment to the Business Combination Agreement, and to SoftBank’s monetization of its T-Mobile shares. We are also named as a nominal defendant in the case. We are unable to predict the potential outcome of these claims. On August 12, 2021, we became aware of a cybersecurity issue involving unauthorized access to T-Mobile’s systems (the “August 2021 cyberattack”). We immediately began an investigation and engaged cybersecurity experts to assist with the assessment of the incident and to help determine what data was impacted. Our investigation uncovered that the perpetrator had illegally gained access to certain areas of our systems on or about March 18, 2021, but only gained access to and took data of current, former, and prospective customers beginning on or about August 3, 2021. With the assistance of our outside cybersecurity experts, we located and closed the unauthorized access to our systems and identified current, former and prospective customers whose information was impacted and notified them, consistent with state and federal requirements. We also undertook a number of other measures to demonstrate our continued support and commitment to data privacy and protection. We also coordinated with law enforcement. Our forensic investigation is complete, and we believe we have a full view of the data compromised. As a result of the August 2021 cyberattack, we have become subject to numerous lawsuits, including mass arbitration claims and multiple class action lawsuits that have been filed in numerous jurisdictions seeking, among other things, unspecified monetary damages, costs and attorneys’ fees arising out of the August 2021 cyberattack. In December 2021, the Judicial Panel on Multidistrict Litigation consolidated the federal class action lawsuits in the U.S. District Court for the Western District of Missouri under the caption In re: T-Mobile Customer Data Security Breach Litigation, Case No. 21-md-3019-BCW. On July 22, 2022, we entered into an agreement to settle the lawsuit. On June 29, 2023, the Court issued an order granting final approval of the settlement, which is subject to potential appeals. Under the terms of the settlement, we would pay an aggregate of $350 million to fund claims submitted by class members, the legal fees of plaintiffs’ counsel and the costs of administering the settlement. We would also commit to an aggregate incremental spend of $150 million for data security and related technology in 2022 and 2023. We previously paid $35 million for claims administration purposes. We expect the remaining portion of the $350 million settlement payment to fund claims to be made by August 29, 2023, unless settlement is delayed by potential appeals. We anticipate that, upon exhaustion of any appeals, the settlement will provide a full release of all claims arising out of the August 2021 cyberattack by class members who do not opt out, against all defendants, including us, our subsidiaries and affiliates, and our directors and officers. The settlement contains no admission of liability, wrongdoing or responsibility by any of the defendants. We have the right to terminate the settlement agreement under certain conditions. We anticipate that this settlement of the class action, along with other settlements of separate consumer claims that have been previously completed or are currently pending, will resolve substantially all of the claims brought to date by our current, former and prospective customers who were impacted by the 2021 cyberattack. In connection with the proposed class action settlement and the separate settlements, we recorded a total pre-tax charge of approximately $400 million in the second quarter of 2022. During the six months ended June 30, 2023, we recognized $50 million in reimbursements from insurance carriers for costs incurred related to the August 2021 cyberattack, which is included as a reduction to Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income (Loss). The ultimate resolution of the class action depends on the number of plaintiffs who opt-out of the proposed settlement and whether the proposed settlement will be appealed. In addition, in September 2022, a purported Company shareholder filed a derivative action in the Delaware Chancery Court under the caption Harper v. Sievert et al., Case No. 2022-0819-SG, against our current directors and certain of our former directors, alleging claims for breach of fiduciary duty relating to the Company’s cybersecurity practices. We are also named as a nominal defendant in the lawsuit. We are unable at this time to predict the potential outcome of this lawsuit or whether we may be subject to further private litigation. We have also received inquiries from various government agencies, law enforcement and other governmental authorities related to the August 2021 cyberattack which could result in substantial fines or penalties. We are cooperating fully with these agencies and regulators and working with them to resolve these matters. While we hope to resolve them in the near term, we cannot predict the timing or outcome of any of these matters, or whether we may be subject to further regulatory inquiries, investigations, or enforcement actions. In light of the inherent uncertainties involved in such matters and based on the information currently available to us, in addition to the previously recorded pre-tax charge of approximately $400 million noted above, we believe it is reasonably possible that we could incur additional losses associated with these proceedings and inquiries, and we will continue to evaluate information as it becomes known and will record an estimate for losses at the time or times when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable. Ongoing legal and other costs related to these proceedings and inquiries, as well as any potential future actions, may be substantial, and losses associated with any adverse judgments, settlements, penalties or other resolutions of such proceedings and inquiries could be material to our business, reputation, financial condition, cash flows and operating results. On June 17, 2022, plaintiffs filed a putative antitrust class action complaint in the Northern District of Illinois, Dale et al. v. Deutsche Telekom AG, et al., Case No. 1:22-cv-03189, against DT, T-Mobile, and SoftBank, alleging that the Merger violated the antitrust laws and harmed competition in the U.S. retail cell service market. Plaintiffs seek injunctive relief and trebled monetary damages on behalf of a purported class of AT&T and Verizon customers who plaintiffs allege paid artificially inflated prices due to the Merger. We intend to vigorously defend this lawsuit, but we are unable to predict the potential outcome. On January 5, 2023, we identified that a bad actor was obtaining data through a single Application Programming Interface (“API”) without authorization. Based on our investigation, the impacted API is only able to provide a limited set of customer account data, including name, billing address, email, phone number, date of birth, T-Mobile account number and information such as the number of lines on the account and plan features. The result from our investigation indicates that the bad actor(s) obtained data from this API for approximately 37 million current postpaid and prepaid customer accounts, though many of these accounts did not include the full data set. We believe that the bad actor first retrieved data through the impacted API starting on or around November 25, 2022. We have notified individuals whose information was impacted consistent with state and federal requirements. In connection with the January 2023 cyberattack, we became subject to consumer class actions and regulatory inquires, to which we will continue to respond in due course and may incur significant expenses. However, we cannot predict the timing or outcome of any of these potential matters, or whether we may be subject to additional legal proceedings, claims, regulatory inquiries, investigations, or enforcement actions. In addition, we are unable to predict the full impact of this incident on customer behavior in the future, including whether a change in our customers’ behavior could negatively impact our results of operations on an ongoing basis, although we presently do not expect that it will have a material effect on our operations.
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Restructuring Costs |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs | Note 14 – Restructuring Costs Upon close of the Merger in April 2020, we began implementing restructuring initiatives to realize cost efficiencies and reduce redundancies. The major activities associated with the Merger restructuring initiatives to date include contract termination costs associated with the rationalization of retail stores, distribution channels, duplicative network and backhaul services and other agreements, severance costs associated with the integration of redundant processes and functions and the decommissioning of certain small cell sites and distributed antenna systems to achieve Merger synergies in network costs. The following table summarizes the expenses incurred in connection with our Merger restructuring initiatives:
The expenses associated with our Merger restructuring initiatives are included in Costs of services and Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income (Loss). Our Merger restructuring initiatives also include the acceleration or termination of certain of our operating and financing leases for cell sites, switch sites, retail stores, network equipment and office facilities. Incremental expenses associated with accelerating amortization of the right-of-use assets on lease contracts were $97 million and $747 million for the three months ended June 30, 2023 and 2022, respectively, and $236 million and $1.2 billion for the six months ended June 30, 2023 and 2022, respectively, and are included in Costs of services and Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income (Loss). The changes in the liabilities associated with our Merger restructuring initiatives, including expenses incurred and cash payments, are as follows:
(1) Non-cash items primarily consist of the write-off of assets within Network decommissioning. The liabilities accrued in connection with our Merger restructuring initiatives are presented in Accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets. We expect to incur substantially all remaining costs associated with our Merger restructuring activities by the end of this year, with the related cash outflows extending beyond 2023.
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Additional Financial Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Supplemental Financial Statement Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Financial Information | Note 15 – Additional Financial Information Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities, excluding amounts classified as held for sale, are summarized as follows:
Book overdrafts included in accounts payable were $436 million and $720 million as of June 30, 2023, and December 31, 2022, respectively. Supplemental Condensed Consolidated Statements of Cash Flows Information The following table summarizes T-Mobile’s supplemental cash flow information:
Cash and cash equivalents, including restricted cash and cash held for sale Cash and cash equivalents, including restricted cash and cash held for sale, presented on our Condensed Consolidated Statements of Cash Flows were included on our Condensed Consolidated Balance Sheets as follows:
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16 – Subsequent Events Subsequent to June 30, 2023, from July 1, 2023, through July 21, 2023, we repurchased 3,961,852 shares of our common stock at an average price per share of $139.43 for a total purchase price of $552 million. See Note 10 – Repurchases of Common Stock for additional information. Subsequent to June 30, 2023, on July 25, 2023, we established an unsecured short-term commercial paper program with the ability to borrow up to $2.0 billion from time to time. This program will supplement our other available external financing arrangements, and proceeds are expected to be used for general corporate purposes. As of July 27, 2023, we have not issued any amount under this program.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Pay vs Performance Disclosure | ||||
Net income (loss) | $ 2,221 | $ (108) | $ 4,161 | $ 605 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | 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, 2022. 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 (“VIEs”) where we are deemed to be the primary beneficiary and VIEs which cannot be deconsolidated, such as those related to our obligations to pay for the management and operation of certain of our wireless communications tower sites. 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 that affect the financial statements and accompanying notes. Estimates are based on historical experience, where applicable, and other assumptions that management believes are reasonable under the circumstances. Estimates are inherently subject to judgment and actual results could differ from those estimates. On September 6, 2022, Sprint Communications LLC, a Kansas limited liability company and wholly owned subsidiary of the Company (“Sprint Communications”), Sprint LLC, a Delaware limited liability company and wholly owned subsidiary of the Company, and Cogent Infrastructure, Inc., a Delaware corporation (the “Buyer”) and a wholly owned subsidiary of Cogent Communications Holdings, Inc., entered into a Membership Interest Purchase Agreement (the “Wireline Sale Agreement”), pursuant to which the Buyer agreed to acquire the U.S. long-haul fiber network and operations (including the non-U.S. extensions thereof) of Sprint Communications and its subsidiaries (the “Wireline Business”). Such transactions contemplated by the Wireline Sale Agreement are collectively referred to as the “Wireline Transaction.” On May 1, 2023, the Buyer and the Company completed the Wireline Transaction (the “Closing”). The assets and liabilities of the Wireline Business disposal group were classified as held for sale and presented within Other current assets and Other current liabilities on our Condensed Consolidated Balance Sheets as of December 31, 2022. The fair value of the Wireline Business disposal group, less costs to sell, was reassessed during each reporting period it remained classified as held for sale, and any remeasurement to the lower of carrying amount or fair value less costs to sell was reported as an adjustment included within Loss (gain) on disposal group held for sale on our Condensed Consolidated Statements of Comprehensive Income (Loss). Unless otherwise specified, the amounts and information presented as of December 31, 2022, in the Notes to the Condensed Consolidated Financial Statements include assets and liabilities that were classified as held for sale.
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Accounting Pronouncements Adopted During the Current Year | Accounting Pronouncements Adopted During the Current Year Troubled Debt Restructurings and Vintage Disclosures In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The standard eliminates the accounting guidance within ASC 310-40 for troubled debt restructurings by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, for public business entities, the standard requires disclosure of current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. As of January 1, 2023, we have adopted this standard, and it was applied prospectively after this date. This standard did not have a material impact on our condensed consolidated financial statements as of and for the three and six months ended June 30, 2023.
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Receivables and Related Allowance for Credit Losses (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equipment Installment Plan Receivables | The following table summarizes the EIP receivables, including imputed discounts and related allowance for credit losses:
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Schedule of Equipment Installment Plan Receivables by Credit Category | The following table presents the amortized cost of our EIP receivables by delinquency status, customer credit class and year of origination as of June 30, 2023:
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Schedule of Write Offs Net of Recoveries | The following table presents write-offs of our EIP receivables by year of origination for the six months ended June 30, 2023:
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Schedule of Unamortized Imputed Discount and Allowance for Credit Losses for Equipment Installment Plan Receivables | Activity for the six months ended June 30, 2023 and 2022, in the allowance for credit losses and unamortized imputed discount balances for the accounts receivable and EIP receivables segments were as follows:
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Sales of Certain Receivables (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities - EIP | The following table summarizes the carrying amounts and classification of assets, which consist primarily of the deferred purchase price, included on our Condensed Consolidated Balance Sheets with respect to the EIP BRE:
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Schedule of Variable Interest Entities | The following table summarizes the carrying amounts and classification of assets, which consist primarily of the deferred purchase price, and liabilities included on our Condensed Consolidated Balance Sheets with respect to the Service BRE:
The following table summarizes the carrying amounts and classification of assets and liabilities included in our Condensed Consolidated Balance Sheets with respect to the ABS Entities:
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Schedule of Factoring Arrangement | The following table summarizes the impact of the sale of certain service accounts receivable and EIP receivables on our Condensed Consolidated Balance Sheets:
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Spectrum License Transactions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Spectrum Licenses | The following table summarizes our spectrum license activity for the six months ended June 30, 2023:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Values and Fair Values of Long-term Debt | The carrying amounts and fair values of our short-term and long-term debt included on our Condensed Consolidated Balance Sheets were as follows:
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt Balances and Activity | The following table sets forth the debt balances and activity as of, and for the six months ended, June 30, 2023:
(1)Issuances and borrowings and reclassifications are recorded net of accrued or paid issuance costs, discounts and premiums. (2)Other includes the amortization of premiums, discounts, debt issuance costs and consent fees.During the six months ended June 30, 2023, we issued the following Senior Notes:
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Schedule of Debt Instrument Redemption | During the six months ended June 30, 2023, we made the following repayments:
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Schedule of Maturities of ABS Notes | The expected maturities of our ABS Notes are as follows:
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Schedule of Variable Interest Entities | The following table summarizes the carrying amounts and classification of assets, which consist primarily of the deferred purchase price, and liabilities included on our Condensed Consolidated Balance Sheets with respect to the Service BRE:
The following table summarizes the carrying amounts and classification of assets and liabilities included in our Condensed Consolidated Balance Sheets with respect to the ABS Entities:
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Tower Obligations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Impacts to Consolidated Balance Sheets | The following table summarizes the balances associated with both of the tower arrangements on our Condensed Consolidated Balance Sheets:
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Revenue from Contracts with Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | Postpaid service revenues, including postpaid phone revenues and postpaid other revenues, were as follows:
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Schedule of Contract Liability and Receivable Balances | The contract asset and contract liability balances from contracts with customers as of June 30, 2023, and December 31, 2022, were as follows:
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Earnings (Loss) Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings (loss) per share was as follows:
(1) Represents the weighted-average SoftBank Specified Shares that are contingently issuable from the Merger date of April 1, 2020, pursuant to a letter agreement dated February 20, 2020, between T-Mobile, SoftBank and DT.
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Restructuring Costs (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Plan Expenses Incurred | The following table summarizes the expenses incurred in connection with our Merger restructuring initiatives:
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Schedule of Activity Related to Expenses Incurred and Cash Payments Made | The changes in the liabilities associated with our Merger restructuring initiatives, including expenses incurred and cash payments, are as follows:
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Additional Financial Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Statement Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities, excluding amounts classified as held for sale, are summarized as follows:
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Schedule of Supplemental Consolidated Statements of Cash Flows Information | The following table summarizes T-Mobile’s supplemental cash flow information:
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Schedule of Restricted Cash | Cash and cash equivalents, including restricted cash and cash held for sale, presented on our Condensed Consolidated Statements of Cash Flows were included on our Condensed Consolidated Balance Sheets as follows:
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Schedule of Cash and Cash Equivalents, Including Cash Held For Sale | Cash and cash equivalents, including restricted cash and cash held for sale, presented on our Condensed Consolidated Statements of Cash Flows were included on our Condensed Consolidated Balance Sheets as follows:
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Business Combination - Narrative (Details) - Ka Ena Corporation - Merger And Unit Purchase Agreement $ in Millions |
Mar. 09, 2023
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Business acquisition, outstanding (percent) | 100.00% |
Purchase price | $ 1,350 |
Business acquisition, cash acquired (percent) | 39.00% |
Business acquisition, common shares acquired (percent) | 61.00% |
Business acquisition, variable earnout payable period | 24 months |
Upfront payment | $ 950 |
Receivables and Related Allowance for Credit Losses - Schedule of Write Offs Net of Recoveries (Details) $ in Millions |
6 Months Ended |
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Jun. 30, 2023
USD ($)
| |
Receivables [Abstract] | |
Originated in 2023 | $ 21 |
Originated in 2022 | 179 |
Originated prior to 2022 | 55 |
Total write-offs | $ 255 |
Sales of Certain Receivables - Schedule of Variable Interest Entities - EIP (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Other current assets | $ 2,032 | $ 2,435 |
Other assets | 4,184 | 4,127 |
EIP Securitization Arrangement | ||
Variable Interest Entity [Line Items] | ||
Revolving receivables facility, maximum borrowing capacity | 1,300 | 1,300 |
Other current assets | 365 | 344 |
Other assets | $ 124 | $ 136 |
Sales of Certain Receivables - Schedule of Variable Interest Entities (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Other current assets | $ 2,032 | $ 2,435 |
Other current liabilities | 1,647 | 1,850 |
Variable Interest Entity, Not Primary Beneficiary | Factoring Arrangement | ||
Variable Interest Entity [Line Items] | ||
Revolving receivables facility, outstanding borrowings | 775 | 775 |
Other current assets | 222 | 214 |
Other current liabilities | $ 375 | $ 389 |
Spectrum License Transactions - Schedule of Spectrum Licenses (Details) - Licensing Agreements $ in Millions |
6 Months Ended |
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Jun. 30, 2023
USD ($)
| |
Indefinite-lived Intangible Assets [Roll Forward] | |
Beginning balance | $ 95,798 |
Spectrum license acquisitions | 68 |
Costs to clear spectrum | 23 |
Ending balance | $ 95,889 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
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Derivative [Line Items] | |||||
Accumulated other comprehensive loss | $ 957 | $ 957 | $ 1,046 | ||
Level 3 | Fair Value | |||||
Derivative [Line Items] | |||||
Carrying amounts of deferred purchase price assets | 710 | 710 | 692 | ||
Interest Expense | |||||
Derivative [Line Items] | |||||
Amount amortized from AOCI into interest expense | 55 | $ 50 | 108 | $ 100 | |
Amount expected to be amortized from AOCI into interest expense over next 12 months | 227 | ||||
Interest Rate Contract | |||||
Derivative [Line Items] | |||||
Accumulated other comprehensive loss | $ 1,200 | $ 1,200 | $ 1,300 |
Debt - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jul. 25, 2023 |
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Debt Instrument [Line Items] | |||||
Effective interest rate | 4.00% | 3.80% | 4.00% | 3.90% | |
Weighted-average debt outstanding during period | $ 76,400,000,000 | $ 71,400,000,000 | $ 74,900,000,000 | $ 72,600,000,000 | |
ABS Notes | |||||
Debt Instrument [Line Items] | |||||
Carrying amounts of deferred purchase price assets | $ 1,000,000,000 | $ 1,000,000,000 | |||
Commercial Paper | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Financing commitment, amount | $ 2,000,000,000 |
Debt - Schedule of Debt Instrument Redemption (Details) |
Jun. 30, 2023
USD ($)
|
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Debt Instrument [Line Items] | |
Principal Amount | $ 354,000,000 |
4.738% Series 2018-1 A-1 Notes due 2025 | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 4.738% |
4.738% Series 2018-1 A-1 Notes due 2025 | Senior Notes | |
Debt Instrument [Line Items] | |
Principal Amount | $ 263,000,000 |
5.152% Series 2018-1 A-2 Notes due 2028 | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate, stated percentage | 5.152% |
Principal Amount | $ 91,000,000 |
Debt - Schedule of Maturities of ABS Notes (Details) - ABS Notes - USD ($) $ in Millions |
Jun. 30, 2023 |
Oct. 12, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Carrying amounts of deferred purchase price assets | $ 1,000 | |
A Senior Class | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.91% | |
Expected Maturity 2024 | 198 | |
Expected maturity 2025 | $ 552 |
Debt - Schedule of Variable Interest Entities (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Equipment installment plan receivables, net | $ 4,779 | $ 5,123 |
Equipment installment plan receivables due after one year, net | 1,966 | 2,546 |
Other current assets | 2,032 | 2,435 |
Accounts payable and accrued liabilities | 9,872 | 12,275 |
Variable Interest Entity, Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Equipment installment plan receivables, net | 771 | 652 |
Equipment installment plan receivables due after one year, net | 150 | 281 |
Other current assets | 87 | 73 |
Accounts payable and accrued liabilities | 1 | 1 |
Long-term debt | $ 747 | $ 746 |
Tower Obligations - Schedule of Impacts to Consolidated Balance Sheets (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Property and equipment, net | ||
Sale Leaseback Transaction [Line Items] | ||
Sale-leasebacks | $ 2,305 | $ 2,379 |
Tower obligations | ||
Sale Leaseback Transaction [Line Items] | ||
Sale-leasebacks | 3,860 | 3,934 |
Other long-term liabilities | ||
Sale Leaseback Transaction [Line Items] | ||
Sale-leasebacks | $ 554 | $ 554 |
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023
USD ($)
customer_category
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2023
USD ($)
customer_category
|
Jun. 30, 2022
USD ($)
|
|
Disaggregation of Revenue [Line Items] | ||||
Number of customer categories | customer_category | 3 | 3 | ||
Revenues | $ 19,196 | $ 19,701 | $ 38,828 | $ 39,821 |
Postpaid phone revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,799 | 10,407 | 21,451 | 20,638 |
Postpaid other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,271 | 1,038 | 2,481 | 2,008 |
Total postpaid service revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 12,070 | $ 11,445 | $ 23,932 | $ 22,646 |
Revenue from Contracts with Customers - Schedule of Contract Liability and Receivable Balances (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Revenue from Contract with Customer [Abstract] | |||||
Contract Assets | $ 665 | $ 665 | $ 534 | ||
Contract Liabilities | 789 | 789 | 748 | ||
Change in contract assets included in other current assets | 131 | ||||
Change in contracts liabilities included in deferred revenue | 41 | ||||
Current portion of contract assets | 490 | 490 | $ 356 | ||
Amounts included in the beginning of year contract liability balance | $ 39 | $ 31 | $ 706 | $ 685 |
Revenue from Contracts with Customers - Contract Costs (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Capitalized Contract Cost [Abstract] | |||||
Deferred incremental costs to obtain contracts | $ 2,000,000,000 | $ 2,000,000,000 | $ 1,900,000,000 | ||
Average amortization period, deferred contract costs (in months) | 24 months | 24 months | |||
Amortization of deferred costs | $ 444,000,000 | $ 358,000,000 | $ 866,000,000 | $ 682,000,000 | |
Impairment losses recognized on deferred contract cost assets | $ 0 | $ 0 | $ 0 | $ 0 |
Repurchases of Common Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | |
---|---|---|---|---|
Jul. 21, 2023 |
Jun. 30, 2023 |
Jun. 30, 2023 |
Sep. 08, 2022 |
|
Equity, Class of Treasury Stock [Line Items] | ||||
Purchase price | $ 3,561 | $ 8,371 | ||
2022 Stock Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 14,000 | |||
Repurchases of common stock (in shares) | 25,183,838 | 58,147,778 | ||
Average price paid per share (in USD per share) | $ 140.00 | $ 142.59 | ||
Purchase price | $ 3,500 | $ 8,300 | ||
Share repurchase authorization amount | $ 2,700 | $ 2,700 | ||
2022 Stock Repurchase Program | Subsequent Event | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchases of common stock (in shares) | 3,961,852 | |||
Average price paid per share (in USD per share) | $ 139.43 | |||
Purchase price | $ 552 | |||
Share repurchase authorization amount | $ 2,200 |
Earnings (Loss) Per Share - Narrative (Details) - $ / shares |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
SoftBank contingent consideration | |||
Class of Stock [Line Items] | |||
Potentially dilutive securities (in shares) | 48,751,557 | 48,751,557 | 48,751,557 |
Mandatory Convertible Preferred Stock Series A | |||
Class of Stock [Line Items] | |||
Preferred shares authorized (in shares) | 100,000,000 | ||
Preferred stock, par value (in USD per share) | $ 0.00001 | ||
Preferred shares outstanding (in shares) | 0 | 0 | 0 |
Restructuring Costs - Schedule of Restructuring Plan Expenses Incurred (Details) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2023
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 108 | $ 198 |
Incurred to Date | 2,669 | 2,669 |
Contract termination costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 24 | 24 |
Incurred to Date | 447 | 447 |
Severance costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 3 |
Incurred to Date | 574 | 574 |
Network decommissioning | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 84 | 171 |
Incurred to Date | $ 1,648 | $ 1,648 |
Restructuring Costs - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Restructuring and Related Activities [Abstract] | ||||
Amortization of the right-of-use assets on lease contracts | $ 97 | $ 747 | $ 236 | $ 1,200 |
Additional Financial Information - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Supplemental Financial Statement Elements [Abstract] | ||
Accounts payable | $ 5,465 | $ 7,213 |
Payroll and related benefits | 807 | 1,236 |
Property and other taxes, including payroll | 1,678 | 1,657 |
Accrued interest | 852 | 731 |
Commissions and contract termination costs | 262 | 523 |
Toll and interconnect | 203 | 227 |
Other | 605 | 688 |
Accounts payable and accrued liabilities | 9,872 | 12,275 |
Accounts Payable and Accrued Liabilities | ||
Accounts Payable and Accrued Liabilities [Line Items] | ||
Outstanding checks | $ 436 | $ 720 |
Additional Financial Information - Schedule of Supplemental Consolidated Statements of Cash Flows Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Supplemental Financial Statement Elements [Abstract] | ||||
Interest payments, net of amounts capitalized | $ 896 | $ 989 | $ 1,736 | $ 1,767 |
Operating lease payments | 1,483 | 1,042 | 2,797 | 2,090 |
Income tax payments | 95 | 63 | 122 | 63 |
Non-cash investing and financing activities | ||||
Non-cash beneficial interest obtained in exchange for securitized receivables | 1,109 | 990 | 2,228 | 2,008 |
Change in accounts payable and accrued liabilities for purchases of property and equipment | (408) | (68) | (737) | (251) |
Increase in Tower obligations from contract modification | 0 | 0 | 0 | 1,158 |
Operating lease right-of-use assets obtained in exchange for lease obligations | 674 | 591 | 1,113 | 6,566 |
Financing lease right-of-use assets obtained in exchange for lease obligations | $ 324 | $ 551 | $ 563 | $ 849 |
Additional Financial Information - Schedule of Cash and Cash Equivalents, Including Restricted Cash and Cash Held for Sale (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Supplemental Financial Statement Elements [Abstract] | ||
Cash and cash equivalents | $ 6,647 | $ 4,507 |
Cash and cash equivalents held for sale (included in Other current assets) | 0 | 27 |
Restricted cash (included in Other current assets) | 87 | 73 |
Restricted cash (included in Other assets) | 74 | 67 |
Cash and cash equivalents, including restricted cash and cash held for sale | $ 6,808 | $ 4,674 |
Subsequent Events - Narrative (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 6 Months Ended | |
---|---|---|---|---|
Jul. 21, 2023 |
Jun. 30, 2023 |
Jun. 30, 2023 |
Jul. 25, 2023 |
|
Subsequent Event [Line Items] | ||||
Purchase price | $ 3,561,000,000 | $ 8,371,000,000 | ||
Subsequent Event | Commercial Paper | ||||
Subsequent Event [Line Items] | ||||
Financing commitment, amount | $ 2,000,000,000 | |||
2022 Stock Repurchase Program | ||||
Subsequent Event [Line Items] | ||||
Repurchases of common stock (in shares) | 25,183,838 | 58,147,778 | ||
Average price paid per share (in USD per share) | $ 140.00 | $ 142.59 | ||
Purchase price | $ 3,500,000,000 | $ 8,300,000,000 | ||
2022 Stock Repurchase Program | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Repurchases of common stock (in shares) | 3,961,852 | |||
Average price paid per share (in USD per share) | $ 139.43 | |||
Purchase price | $ 552,000,000 |
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