0001283699false2023Q312-31P3MP1Y00012836992023-01-012023-09-3000012836992023-10-20xbrli:shares00012836992023-09-30iso4217:USD00012836992022-12-310001283699us-gaap:NonrelatedPartyMember2023-09-300001283699us-gaap:NonrelatedPartyMember2022-12-310001283699us-gaap:RelatedPartyMember2023-09-300001283699us-gaap:RelatedPartyMember2022-12-31iso4217:USDxbrli:shares0001283699tmus:BrandedPostpaidRevenueMember2023-07-012023-09-300001283699tmus:BrandedPostpaidRevenueMember2022-07-012022-09-300001283699tmus:BrandedPostpaidRevenueMember2023-01-012023-09-300001283699tmus:BrandedPostpaidRevenueMember2022-01-012022-09-300001283699tmus:BrandedPrepaidRevenueMember2023-07-012023-09-300001283699tmus:BrandedPrepaidRevenueMember2022-07-012022-09-300001283699tmus:BrandedPrepaidRevenueMember2023-01-012023-09-300001283699tmus:BrandedPrepaidRevenueMember2022-01-012022-09-300001283699tmus:WholesaleAndOtherServiceRevenueMember2023-07-012023-09-300001283699tmus:WholesaleAndOtherServiceRevenueMember2022-07-012022-09-300001283699tmus:WholesaleAndOtherServiceRevenueMember2023-01-012023-09-300001283699tmus:WholesaleAndOtherServiceRevenueMember2022-01-012022-09-300001283699us-gaap:ServiceMember2023-07-012023-09-300001283699us-gaap:ServiceMember2022-07-012022-09-300001283699us-gaap:ServiceMember2023-01-012023-09-300001283699us-gaap:ServiceMember2022-01-012022-09-300001283699tmus:ProductEquipmentMember2023-07-012023-09-300001283699tmus:ProductEquipmentMember2022-07-012022-09-300001283699tmus:ProductEquipmentMember2023-01-012023-09-300001283699tmus:ProductEquipmentMember2022-01-012022-09-300001283699us-gaap:ProductAndServiceOtherMember2023-07-012023-09-300001283699us-gaap:ProductAndServiceOtherMember2022-07-012022-09-300001283699us-gaap:ProductAndServiceOtherMember2023-01-012023-09-300001283699us-gaap:ProductAndServiceOtherMember2022-01-012022-09-3000012836992023-07-012023-09-3000012836992022-07-012022-09-3000012836992022-01-012022-09-3000012836992023-06-3000012836992022-06-3000012836992021-12-3100012836992022-09-300001283699us-gaap:CommonStockMember2023-06-300001283699us-gaap:TreasuryStockCommonMember2023-06-300001283699us-gaap:AdditionalPaidInCapitalMember2023-06-300001283699us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001283699us-gaap:RetainedEarningsMember2023-06-300001283699us-gaap:RetainedEarningsMember2023-07-012023-09-300001283699us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001283699us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001283699us-gaap:CommonStockMember2023-07-012023-09-300001283699us-gaap:TreasuryStockCommonMember2023-07-012023-09-300001283699us-gaap:CommonStockMember2023-09-300001283699us-gaap:TreasuryStockCommonMember2023-09-300001283699us-gaap:AdditionalPaidInCapitalMember2023-09-300001283699us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001283699us-gaap:RetainedEarningsMember2023-09-300001283699us-gaap:CommonStockMember2022-12-310001283699us-gaap:TreasuryStockCommonMember2022-12-310001283699us-gaap:AdditionalPaidInCapitalMember2022-12-310001283699us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001283699us-gaap:RetainedEarningsMember2022-12-310001283699us-gaap:RetainedEarningsMember2023-01-012023-09-300001283699us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300001283699us-gaap:AdditionalPaidInCapitalMember2023-01-012023-09-300001283699us-gaap:CommonStockMember2023-01-012023-09-300001283699us-gaap:TreasuryStockCommonMember2023-01-012023-09-300001283699us-gaap:CommonStockMember2022-06-300001283699us-gaap:TreasuryStockCommonMember2022-06-300001283699us-gaap:AdditionalPaidInCapitalMember2022-06-300001283699us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001283699us-gaap:RetainedEarningsMember2022-06-300001283699us-gaap:RetainedEarningsMember2022-07-012022-09-300001283699us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001283699us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001283699us-gaap:CommonStockMember2022-07-012022-09-300001283699us-gaap:TreasuryStockCommonMember2022-07-012022-09-300001283699us-gaap:CommonStockMember2022-09-300001283699us-gaap:TreasuryStockCommonMember2022-09-300001283699us-gaap:AdditionalPaidInCapitalMember2022-09-300001283699us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001283699us-gaap:RetainedEarningsMember2022-09-300001283699us-gaap:CommonStockMember2021-12-310001283699us-gaap:TreasuryStockCommonMember2021-12-310001283699us-gaap:AdditionalPaidInCapitalMember2021-12-310001283699us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001283699us-gaap:RetainedEarningsMember2021-12-310001283699us-gaap:RetainedEarningsMember2022-01-012022-09-300001283699us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001283699us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-300001283699us-gaap:CommonStockMember2022-01-012022-09-300001283699us-gaap:TreasuryStockCommonMember2022-01-012022-09-300001283699tmus:A20232024StockholderReturnProgramMember2023-09-060001283699tmus:MergerAndUnitPurchaseAgreementMembertmus:KaEnaCorporationMember2023-03-09xbrli:pure0001283699tmus:MergerAndUnitPurchaseAgreementMembertmus:KaEnaCorporationMember2023-03-092023-03-09tmus:segmenttmus:class0001283699tmus:EquipmentInstallmentPlanReceivableMember2023-01-012023-09-300001283699tmus:EquipmentInstallmentPlanReceivableMember2022-01-012022-12-310001283699tmus:EquipmentInstallmentPlanReceivablesNetMember2023-09-300001283699tmus:EquipmentInstallmentPlanReceivablesNetMember2022-12-310001283699tmus:EquipmentInstallmentPlanReceivablesDueAfterOneYearNetMember2023-09-300001283699tmus:EquipmentInstallmentPlanReceivablesDueAfterOneYearNetMember2022-12-310001283699us-gaap:PrimeMembertmus:FinancingReceivables1to30DaysPastDueMember2023-09-300001283699us-gaap:SubprimeMembertmus:FinancingReceivables1to30DaysPastDueMember2023-09-300001283699tmus:FinancingReceivables1to30DaysPastDueMember2023-09-300001283699us-gaap:PrimeMembertmus:FinancingReceivables31to60DaysPastDueMember2023-09-300001283699tmus:FinancingReceivables31to60DaysPastDueMemberus-gaap:SubprimeMember2023-09-300001283699tmus:FinancingReceivables31to60DaysPastDueMember2023-09-300001283699tmus:FinancingReceivables61to90DaysPastDueMemberus-gaap:PrimeMember2023-09-300001283699tmus:FinancingReceivables61to90DaysPastDueMemberus-gaap:SubprimeMember2023-09-300001283699tmus:FinancingReceivables61to90DaysPastDueMember2023-09-300001283699us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:PrimeMember2023-09-300001283699us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:SubprimeMember2023-09-300001283699us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-09-300001283699us-gaap:PrimeMember2023-09-300001283699us-gaap:SubprimeMember2023-09-300001283699tmus:AccountsReceivablesGrossMember2022-12-310001283699tmus:EquipmentInstallmentPlanReceivableMember2022-12-310001283699tmus:AccountsReceivablesGrossMember2021-12-310001283699tmus:EquipmentInstallmentPlanReceivableMember2021-12-310001283699tmus:AccountsReceivablesGrossMember2023-01-012023-09-300001283699tmus:AccountsReceivablesGrossMember2022-01-012022-09-300001283699tmus:EquipmentInstallmentPlanReceivableMember2022-01-012022-09-300001283699tmus:AccountsReceivablesGrossMember2023-09-300001283699tmus:EquipmentInstallmentPlanReceivableMember2023-09-300001283699tmus:AccountsReceivablesGrossMember2022-09-300001283699tmus:EquipmentInstallmentPlanReceivableMember2022-09-300001283699tmus:EIPSecuritizationArrangementMember2023-09-300001283699tmus:EIPSecuritizationArrangementMember2022-12-310001283699us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMembertmus:FactoringArrangementMember2022-12-310001283699us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMembertmus:FactoringArrangementMember2023-09-300001283699us-gaap:VariableInterestEntityPrimaryBeneficiaryMembertmus:FactoringandEIPSecuritizationArrangementMember2023-09-300001283699us-gaap:VariableInterestEntityPrimaryBeneficiaryMembertmus:FactoringandEIPSecuritizationArrangementMember2022-12-310001283699us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:OtherCurrentAssetsMembertmus:FactoringandEIPSecuritizationArrangementMember2023-09-300001283699us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:OtherCurrentAssetsMembertmus:FactoringandEIPSecuritizationArrangementMember2022-12-310001283699us-gaap:OtherNoncurrentAssetsMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMembertmus:FactoringandEIPSecuritizationArrangementMember2023-09-300001283699us-gaap:OtherNoncurrentAssetsMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMembertmus:FactoringandEIPSecuritizationArrangementMember2022-12-310001283699us-gaap:VariableInterestEntityPrimaryBeneficiaryMembertmus:FactoringandEIPSecuritizationArrangementMember2023-01-012023-09-300001283699us-gaap:VariableInterestEntityPrimaryBeneficiaryMembertmus:FactoringandEIPSecuritizationArrangementMember2022-01-012022-12-310001283699us-gaap:VariableInterestEntityPrimaryBeneficiaryMembertmus:FactoringandEIPSecuritizationArrangementMember2023-07-012023-09-300001283699us-gaap:VariableInterestEntityPrimaryBeneficiaryMembertmus:FactoringandEIPSecuritizationArrangementMember2022-07-012022-09-300001283699us-gaap:VariableInterestEntityPrimaryBeneficiaryMembertmus:FactoringandEIPSecuritizationArrangementMember2022-01-012022-09-300001283699us-gaap:LicensingAgreementsMember2022-12-310001283699us-gaap:LicensingAgreementsMember2023-01-012023-09-300001283699us-gaap:LicensingAgreementsMember2023-09-300001283699tmus:Auction107Memberus-gaap:LicensingAgreementsMember2023-01-012023-09-300001283699us-gaap:LicensingAgreementsMembertmus:Auction108Member2022-09-012022-09-30tmus:license0001283699tmus:Auction108Member2022-09-012022-09-300001283699us-gaap:LicensingAgreementsMembertmus:Auction108Member2022-06-012022-06-300001283699tmus:SpectrumLicensesMembertmus:DISHNetworkCorporationMembertmus:TMobileandSprintCorporationMember2020-07-012020-07-010001283699tmus:SpectrumLicensesMembertmus:DISHNetworkCorporationMemberus-gaap:SubsequentEventMembertmus:TMobileandSprintCorporationMember2023-10-150001283699tmus:SpectrumLicensesMembertmus:DISHNetworkCorporationMemberus-gaap:SubsequentEventMembertmus:TMobileandSprintCorporationMember2023-10-152023-10-150001283699tmus:Channel51LicenseCoLLCAndLBLicenseCoLLCMembertmus:SpectrumLicensesMember2022-08-082022-08-080001283699tmus:Channel51LicenseCoLLCAndLBLicenseCoLLCMemberus-gaap:LicensingAgreementsMember2023-03-302023-03-30tmus:tranche0001283699tmus:Channel51LicenseCoLLCAndLBLicenseCoLLCMemberus-gaap:LicensingAgreementsMember2023-08-252023-08-250001283699tmus:Channel51LicenseCoLLCAndLBLicenseCoLLCMembertmus:SpectrumLicensesMemberus-gaap:LicensingAgreementsMember2023-03-302023-03-300001283699srt:MinimumMemberus-gaap:LicensingAgreementsMembertmus:ComcastCorporationMember2023-09-122023-09-120001283699srt:MaximumMemberus-gaap:LicensingAgreementsMembertmus:ComcastCorporationMember2023-09-122023-09-120001283699us-gaap:InterestRateContractMember2023-09-300001283699us-gaap:InterestRateContractMember2022-12-310001283699us-gaap:InterestExpenseMember2023-07-012023-09-300001283699us-gaap:InterestExpenseMember2022-07-012022-09-300001283699us-gaap:InterestExpenseMember2023-01-012023-09-300001283699us-gaap:InterestExpenseMember2022-01-012022-09-300001283699us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2023-09-300001283699us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel3Member2022-12-310001283699us-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2023-09-300001283699us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2023-09-300001283699us-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2022-12-310001283699us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2022-12-310001283699us-gaap:FairValueInputsLevel2Memberus-gaap:RelatedPartyMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2023-09-300001283699us-gaap:FairValueInputsLevel2Memberus-gaap:RelatedPartyMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2023-09-300001283699us-gaap:FairValueInputsLevel2Memberus-gaap:RelatedPartyMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2022-12-310001283699us-gaap:FairValueInputsLevel2Memberus-gaap:RelatedPartyMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2022-12-310001283699tmus:ThirdPartyMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2023-09-300001283699tmus:ThirdPartyMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2023-09-300001283699tmus:ThirdPartyMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2022-12-310001283699tmus:ThirdPartyMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2022-12-310001283699tmus:ABSNotesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:RelatedPartyMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-09-300001283699tmus:ABSNotesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:RelatedPartyMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-09-300001283699tmus:ABSNotesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:RelatedPartyMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310001283699tmus:ABSNotesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:RelatedPartyMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001283699us-gaap:OtherDebtSecuritiesMember2022-12-310001283699us-gaap:ShortTermDebtMemberus-gaap:NonrelatedPartyMember2022-12-310001283699us-gaap:ShortTermDebtMemberus-gaap:NonrelatedPartyMember2023-01-012023-09-300001283699tmus:ThirdPartyMemberus-gaap:ShortTermDebtMember2023-09-300001283699us-gaap:ShortTermDebtMemberus-gaap:NonrelatedPartyMember2023-09-300001283699us-gaap:NonrelatedPartyMemberus-gaap:LongTermDebtMember2022-12-310001283699us-gaap:NonrelatedPartyMemberus-gaap:LongTermDebtMember2023-01-012023-09-300001283699tmus:ThirdPartyMemberus-gaap:LongTermDebtMember2023-09-300001283699us-gaap:NonrelatedPartyMemberus-gaap:LongTermDebtMember2023-09-300001283699us-gaap:NonrelatedPartyMember2023-01-012023-09-300001283699tmus:ThirdPartyMembertmus:TotalDebtMember2023-09-300001283699us-gaap:RelatedPartyMember2023-01-012023-09-300001283699srt:AffiliatedEntityMemberus-gaap:LongTermDebtMember2023-09-300001283699tmus:TotalDebtMember2023-09-300001283699tmus:A4950SeniorNotesDue2028Memberus-gaap:SeniorNotesMember2023-09-300001283699tmus:A4950SeniorNotesDue2028Memberus-gaap:SeniorNotesMember2023-02-090001283699tmus:A4950SeniorNotesDue2028Memberus-gaap:SeniorNotesMember2023-02-092023-02-090001283699tmus:A5050SeniorNotesDue20331Memberus-gaap:SeniorNotesMember2023-09-300001283699tmus:A5050SeniorNotesDue20331Memberus-gaap:SeniorNotesMember2023-02-090001283699tmus:A5050SeniorNotesDue20331Memberus-gaap:SeniorNotesMember2023-02-092023-02-090001283699tmus:A5650SeniorNotesDue2053Memberus-gaap:SeniorNotesMember2023-09-300001283699tmus:A5650SeniorNotesDue2053Memberus-gaap:SeniorNotesMember2023-02-090001283699tmus:A5650SeniorNotesDue2053Memberus-gaap:SeniorNotesMember2023-02-092023-02-090001283699tmus:A4800SeniorNotesDue2028Memberus-gaap:SeniorNotesMember2023-09-300001283699tmus:A4800SeniorNotesDue2028Memberus-gaap:SeniorNotesMember2023-05-110001283699tmus:A4800SeniorNotesDue2028Memberus-gaap:SeniorNotesMember2023-05-112023-05-110001283699tmus:A5050SeniorNotesDue20332Memberus-gaap:SeniorNotesMember2023-09-300001283699tmus:A5050SeniorNotesDue20332Memberus-gaap:SeniorNotesMember2023-05-110001283699tmus:A5050SeniorNotesDue20332Memberus-gaap:SeniorNotesMember2023-05-112023-05-110001283699tmus:A5750SeniorNotesDue2054Memberus-gaap:SeniorNotesMember2023-09-300001283699tmus:A5750SeniorNotesDue2054Memberus-gaap:SeniorNotesMember2023-05-110001283699tmus:A5750SeniorNotesDue2054Memberus-gaap:SeniorNotesMember2023-05-112023-05-110001283699tmus:A5750SeniorNotesDue2034Memberus-gaap:SeniorNotesMember2023-09-300001283699tmus:A5750SeniorNotesDue2034Memberus-gaap:SeniorNotesMember2023-09-140001283699tmus:A5750SeniorNotesDue2034Memberus-gaap:SeniorNotesMember2023-09-142023-09-140001283699tmus:A6000SeniorNotesDue2054Memberus-gaap:SeniorNotesMember2023-09-300001283699tmus:A6000SeniorNotesDue2054Memberus-gaap:SeniorNotesMember2023-09-140001283699tmus:A6000SeniorNotesDue2054Memberus-gaap:SeniorNotesMember2023-09-142023-09-140001283699us-gaap:SeniorNotesMember2023-09-300001283699us-gaap:SeniorNotesMember2023-01-012023-09-300001283699tmus:A7875SeniorNotesDue2023Memberus-gaap:SeniorNotesMember2023-09-300001283699srt:AffiliatedEntityMemberus-gaap:SeniorNotesMember2023-09-300001283699tmus:SeniorSecuredSeries20181A1NotesDue20254738Memberus-gaap:SeniorNotesMember2023-09-300001283699tmus:SeniorSecuredSeries20185152Series20181A2NotesDue2028Memberus-gaap:SeniorNotesMember2023-09-300001283699tmus:ABSNotesMember2023-09-300001283699tmus:ABSNotesMembertmus:ASeniorClassMember2022-10-120001283699tmus:ABSNotesMembertmus:ASeniorClassMember2023-09-300001283699us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-09-300001283699us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-12-310001283699us-gaap:CommercialPaperMember2023-07-250001283699tmus:TowerTransactionMembertmus:CrownCastleInternationalCorp.Member2012-01-012012-12-31tmus:tower_site0001283699srt:MinimumMembertmus:TowerTransactionMember2012-12-310001283699srt:MaximumMembertmus:TowerTransactionMember2012-12-310001283699tmus:TowerTransactionMember2012-01-012012-12-310001283699tmus:TowerTransactionMembertmus:CrownCastleInternationalCorp.Member2020-04-012020-04-0100012836992020-04-012020-04-01tmus:renewal_option0001283699tmus:TowerTransactionMembertmus:CrownCastleInternationalCorp.Member2020-04-010001283699tmus:SprintCorporationMember2020-04-012020-04-010001283699tmus:TowerTransactionMembertmus:TowerMember2023-09-300001283699tmus:TowerTransactionMember2022-01-030001283699tmus:CrownCastleInternationalCorp.Member2022-01-032022-01-030001283699tmus:TowerTransactionMember2022-01-032022-01-030001283699tmus:CrownCastleInternationalCorp.Membertmus:CCITowerLeaseArrangementMember2022-01-032022-01-030001283699us-gaap:PropertyPlantAndEquipmentMember2023-09-300001283699us-gaap:PropertyPlantAndEquipmentMember2022-12-310001283699tmus:FailedSaleLeasebackTransactionTowerObligationsMember2023-09-300001283699tmus:FailedSaleLeasebackTransactionTowerObligationsMember2022-12-310001283699us-gaap:OtherNoncurrentLiabilitiesMember2023-09-300001283699us-gaap:OtherNoncurrentLiabilitiesMember2022-12-310001283699tmus:CrownCastleInternationalCorp.Member2023-09-30tmus:customer_category0001283699tmus:BrandedPostpaidRevenuePhoneMember2023-07-012023-09-300001283699tmus:BrandedPostpaidRevenuePhoneMember2022-07-012022-09-300001283699tmus:BrandedPostpaidRevenuePhoneMember2023-01-012023-09-300001283699tmus:BrandedPostpaidRevenuePhoneMember2022-01-012022-09-300001283699tmus:BrandedPostpaidRevenueOtherMember2023-07-012023-09-300001283699tmus:BrandedPostpaidRevenueOtherMember2022-07-012022-09-300001283699tmus:BrandedPostpaidRevenueOtherMember2023-01-012023-09-300001283699tmus:BrandedPostpaidRevenueOtherMember2022-01-012022-09-300001283699tmus:BrandedPostpaidRevenueMember2023-09-3000012836992023-10-012023-09-3000012836992024-01-012023-09-3000012836992025-01-012023-09-300001283699srt:MinimumMember2023-01-012023-09-300001283699srt:MaximumMember2023-01-012023-09-300001283699tmus:A2022StockRepurchaseProgramMember2022-09-080001283699tmus:A2022StockRepurchaseProgramMember2023-07-012023-09-300001283699tmus:A2022StockRepurchaseProgramMember2023-01-012023-09-300001283699tmus:A20232024StockholderReturnProgramMember2022-09-080001283699tmus:A20232024StockholderReturnProgramMembersrt:DirectorMember2023-09-252023-09-250001283699tmus:A20232024StockholderReturnProgramMember2023-09-300001283699tmus:A20232024StockholderReturnProgramMembertmus:DeutscheTelekomAGMember2023-09-300001283699tmus:A20232024StockholderReturnProgramMember2023-07-012023-09-300001283699tmus:A20232024StockholderReturnProgramMember2023-01-012023-09-300001283699us-gaap:SubsequentEventMembertmus:A20232024StockholderReturnProgramMember2023-10-012023-10-200001283699us-gaap:SubsequentEventMembertmus:A20232024StockholderReturnProgramMember2023-10-200001283699us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembertmus:WirelineBusinessMember2022-09-06tmus:wholly_owned_subsidiary0001283699us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembertmus:WirelineBusinessMember2023-05-010001283699us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembertmus:WirelineBusinessMember2023-05-012023-05-010001283699us-gaap:OtherCurrentLiabilitiesMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembertmus:WirelineBusinessMember2023-09-300001283699us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembertmus:WirelineBusinessMember2023-09-300001283699us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembertmus:WirelineBusinessMember2023-01-012023-09-300001283699us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembertmus:WirelineBusinessMember2022-01-012022-09-300001283699us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMembertmus:WirelineBusinessMember2022-07-012022-09-300001283699tmus:SprintCorporationMembertmus:WirelineBusinessMember2022-07-012022-09-300001283699tmus:SprintCorporationMembertmus:WirelineBusinessMember2023-07-012023-09-300001283699tmus:SprintCorporationMembertmus:WirelineBusinessMember2023-01-012023-09-300001283699us-gaap:StockCompensationPlanMember2023-07-012023-09-300001283699us-gaap:StockCompensationPlanMember2022-07-012022-09-300001283699us-gaap:StockCompensationPlanMember2023-01-012023-09-300001283699us-gaap:StockCompensationPlanMember2022-01-012022-09-300001283699tmus:ContingentConsiderationForMergerMember2023-07-012023-09-300001283699tmus:ContingentConsiderationForMergerMember2022-07-012022-09-300001283699tmus:ContingentConsiderationForMergerMember2023-01-012023-09-300001283699tmus:ContingentConsiderationForMergerMember2022-01-012022-09-300001283699us-gaap:SeriesAPreferredStockMember2023-09-300001283699us-gaap:SeriesAPreferredStockMember2022-09-30utr:D0001283699tmus:ContingentConsiderationForMergerMember2023-09-3000012836992023-06-292023-06-2900012836992022-07-222023-09-3000012836992023-07-312023-07-310001283699us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-06-300001283699us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-012023-09-300001283699us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-09-300001283699us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-09-3000012836992023-01-052023-01-05tmus:customer_account0001283699us-gaap:ContractTerminationMember2023-07-012023-09-300001283699us-gaap:ContractTerminationMember2023-01-012023-09-300001283699us-gaap:ContractTerminationMember2023-09-300001283699us-gaap:EmployeeSeveranceMember2023-07-012023-09-300001283699us-gaap:EmployeeSeveranceMember2023-01-012023-09-300001283699us-gaap:EmployeeSeveranceMember2023-09-300001283699tmus:NetworkingDecommissioningMember2023-07-012023-09-300001283699tmus:NetworkingDecommissioningMember2023-01-012023-09-300001283699tmus:NetworkingDecommissioningMember2023-09-300001283699us-gaap:ContractTerminationMembertmus:MergerRestructuringInitiativesMember2022-12-310001283699us-gaap:ContractTerminationMembertmus:MergerRestructuringInitiativesMember2023-01-012023-09-300001283699us-gaap:ContractTerminationMembertmus:MergerRestructuringInitiativesMember2023-09-300001283699us-gaap:EmployeeSeveranceMembertmus:MergerRestructuringInitiativesMember2022-12-310001283699us-gaap:EmployeeSeveranceMembertmus:MergerRestructuringInitiativesMember2023-01-012023-09-300001283699us-gaap:EmployeeSeveranceMembertmus:MergerRestructuringInitiativesMember2023-09-300001283699tmus:NetworkingDecommissioningMembertmus:MergerRestructuringInitiativesMember2022-12-310001283699tmus:NetworkingDecommissioningMembertmus:MergerRestructuringInitiativesMember2023-01-012023-09-300001283699tmus:NetworkingDecommissioningMembertmus:MergerRestructuringInitiativesMember2023-09-300001283699tmus:MergerRestructuringInitiativesMember2022-12-310001283699tmus:MergerRestructuringInitiativesMember2023-01-012023-09-300001283699tmus:MergerRestructuringInitiativesMember2023-09-300001283699tmus:A2023WorkforceReductionMember2023-08-012023-08-31tmus:position0001283699us-gaap:EmployeeSeveranceMembertmus:A2023WorkforceReductionMember2023-01-012023-09-300001283699us-gaap:EmployeeSeveranceMembertmus:A2023WorkforceReductionMember2022-12-310001283699us-gaap:EmployeeSeveranceMembertmus:A2023WorkforceReductionMember2023-09-300001283699us-gaap:AccountsPayableAndAccruedLiabilitiesMember2023-09-300001283699us-gaap:AccountsPayableAndAccruedLiabilitiesMember2022-12-310001283699tmus:DeeanneKingMember2023-01-012023-09-300001283699tmus:DeeanneKingMember2023-07-012023-09-300001283699tmus:DeeanneKingMember2023-09-300001283699tmus:DaraBazzanoMember2023-01-012023-09-300001283699tmus:DaraBazzanoMember2023-07-012023-09-300001283699tmus:DaraBazzanoMember2023-09-30
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
or
         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from    to
Commission File Number: 1-33409
T-Mobile Logo_03_2023.jpg
T-MOBILE US, INC.
(Exact name of registrant as specified in its charter)
Delaware20-0836269
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

12920 SE 38th Street
Bellevue, Washington
(Address of principal executive offices)
98006-1350
(Zip Code)
(425) 378-4000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.00001 per shareTMUSThe NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes  No ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
ClassShares Outstanding as of October 20, 2023
Common Stock, par value $0.00001 per share1,156,475,060 



1


T-Mobile US, Inc.
Form 10-Q
For the Quarter Ended September 30, 2023

Table of Contents


2

Index for Notes to the Condensed Consolidated Financial Statements
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements

T-Mobile US, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)

(in millions, except share and per share amounts)September 30,
2023
December 31,
2022
Assets
Current assets
Cash and cash equivalents$5,030 $4,507 
Accounts receivable, net of allowance for credit losses of $166 and $167
4,500 4,445 
Equipment installment plan receivables, net of allowance for credit losses and imputed discount of $610 and $667
4,470 5,123 
Inventory1,685 1,884 
Prepaid expenses712 673 
Other current assets2,272 2,435 
Total current assets18,669 19,067 
Property and equipment, net41,080 42,086 
Operating lease right-of-use assets27,568 28,715 
Financing lease right-of-use assets3,390 3,257 
Goodwill12,234 12,234 
Spectrum licenses96,689 95,798 
Other intangible assets, net2,824 3,508 
Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount of $130 and $144
1,879 2,546 
Other assets4,246 4,127 
Total assets$208,579 $211,338 
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued liabilities$9,665 $12,275 
Short-term debt3,437 5,164 
Deferred revenue830 780 
Short-term operating lease liabilities3,545 3,512 
Short-term financing lease liabilities1,286 1,161 
Other current liabilities2,948 1,850 
Total current liabilities21,711 24,742 
Long-term debt70,365 65,301 
Long-term debt to affiliates1,496 1,495 
Tower obligations3,819 3,934 
Deferred tax liabilities12,900 10,884 
Operating lease liabilities28,677 29,855 
Financing lease liabilities1,273 1,370 
Other long-term liabilities3,640 4,101 
Total long-term liabilities122,170 116,940 
Commitments and contingencies (Note 13)
Stockholders' equity
Common stock, par value $0.00001 per share, 2,000,000,000 shares authorized; 1,262,375,765 and 1,256,876,527 shares issued, 1,161,979,708 and 1,233,960,078 shares outstanding
  
Additional paid-in capital74,404 73,941 
Treasury stock, at cost, 100,396,057 and 22,916,449 shares
(14,092)(3,016)
Accumulated other comprehensive loss(949)(1,046)
Retained earnings (accumulated deficit)5,335 (223)
Total stockholders' equity64,698 69,656 
Total liabilities and stockholders' equity$208,579 $211,338 
The accompanying notes are an integral part of these condensed consolidated financial statements.
3

Index for Notes to the Condensed Consolidated Financial Statements
T-Mobile US, Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)

Three Months Ended September 30,Nine Months Ended September 30,
(in millions, except share and per share amounts)2023202220232022
Revenues
Postpaid revenues$12,288 $11,548 $36,220 $34,194 
Prepaid revenues2,473 2,484 7,334 7,408 
Wholesale and other service revenues1,153 1,329 3,644 4,203 
Total service revenues15,914 15,361 47,198 45,805 
Equipment revenues3,076 3,855 9,964 12,679 
Other revenues262 261 918 814 
Total revenues19,252 19,477 58,080 59,298 
Operating expenses
Cost of services, exclusive of depreciation and amortization shown separately below2,886 3,712 8,863 11,499 
Cost of equipment sales, exclusive of depreciation and amortization shown separately below4,249 4,982 12,925 16,036 
Selling, general and administrative5,334 5,118 16,031 16,030 
Impairment expense   477 
Loss (gain) on disposal group held for sale 1,071 (25)1,071 
Depreciation and amortization3,187 3,313 9,500 10,389 
Total operating expenses15,656 18,196 47,294 55,502 
Operating income3,596 1,281 10,786 3,796 
Other expense, net
Interest expense, net(790)(827)(2,486)(2,542)
Other income (expense), net41 (3)56 (35)
Total other expense, net(749)(830)(2,430)(2,577)
Income before income taxes2,847 451 8,356 1,219 
Income tax (expense) benefit(705)57 (2,053)(106)
Net income$2,142 $508 $6,303 $1,113 
Net income$2,142 $508 $6,303 $1,113 
Other comprehensive income, net of tax
Reclassification of loss from cash flow hedges, net of tax effect of $15, $13, $42 and $39
41 39 121 113 
Unrealized (loss) gain on foreign currency translation adjustment, net of tax effect of $0, $0, $0 and $(1)
 (7)9 (11)
Amortization of actuarial gain, net of tax effect of $(11), $0, $(11) and $0
(33) (33) 
Other comprehensive income8 32 97 102 
Total comprehensive income$2,150 $540 $6,400 $1,215 
Earnings per share
Basic$1.83 $0.40 $5.28 $0.89 
Diluted$1.82 $0.40 $5.26 $0.88 
Weighted-average shares outstanding
Basic1,171,336,373 1,253,873,429 1,194,497,722 1,252,783,140 
Diluted1,174,390,472 1,259,210,271 1,198,290,141 1,258,061,478 
The accompanying notes are an integral part of these condensed consolidated financial statements.
4

Index for Notes to the Condensed Consolidated Financial Statements
T-Mobile US, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2023202220232022
Operating activities
Net income$2,142 $508 $6,303 $1,113 
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization3,187 3,313 9,500 10,389 
Stock-based compensation expense156 150 500 445 
Deferred income tax expense (benefit)671 (36)1,985 73 
Bad debt expense228 239 663 760 
Losses from sales of receivables46 60 135 168 
Impairment expense   477 
Loss on remeasurement of disposal group held for sale 371 9 371 
Changes in operating assets and liabilities
Accounts receivable(1,046)(1,224)(3,828)(3,781)
Equipment installment plan receivables165 (77)563 (801)
Inventory(309)(7)182 384 
Operating lease right-of-use assets886 1,113 2,823 4,275 
Other current and long-term assets(135)(334)77 (450)
Accounts payable and accrued liabilities208 342 (1,538)319 
Short- and long-term operating lease liabilities(692)(700)(2,884)(2,218)
Other current and long-term liabilities(260)550 (909)587 
Other, net47 123 119 334 
Net cash provided by operating activities5,294 4,391 13,700 12,445 
Investing activities
Purchases of property and equipment, including capitalized interest of $(66), $(16), $(94) and $(44)
(2,424)(3,634)(8,214)(10,587)
Purchases of spectrum licenses and other intangible assets, including deposits(119)(360)(225)(3,319)
Proceeds from sales of tower sites2  10  
Proceeds related to beneficial interests in securitization transactions1,131 1,308 3,785 3,614 
Acquisition of companies, net of cash and restricted cash acquired   (52)
Other, net17 131 36 138 
Net cash used in investing activities(1,393)(2,555)(4,608)(10,206)
Financing activities
Proceeds from issuance of long-term debt1,983 2,972 8,446 2,972 
Repayments of financing lease obligations(304)(311)(914)(901)
Repayments of long-term debt(4,474)(132)(4,828)(3,145)
Repurchases of common stock(2,681)(557)(10,891)(557)
Tax withholdings on share-based awards(10)(10)(267)(225)
Other, net(24)(35)(113)(97)
Net cash (used in) provided by financing activities(5,510)1,927 (8,567)(1,953)
Change in cash and cash equivalents, including restricted cash and cash held for sale(1,609)3,763 525 286 
Cash and cash equivalents, including restricted cash and cash held for sale
Beginning of period6,808 3,226 4,674 6,703 
End of period$5,199 $6,989 $5,199 $6,989 
The accompanying notes are an integral part of these condensed consolidated financial statements.
5

Index for Notes to the Condensed Consolidated Financial Statements
T-Mobile US, Inc.
Condensed Consolidated Statement of Stockholders’ Equity
(Unaudited)

(in millions, except shares)Common Stock OutstandingTreasury Stock OutstandingTreasury Shares at CostPar Value and Additional Paid-in CapitalAccumulated Other Comprehensive LossRetained Earnings
(Accumulated Deficit)
Total Stockholders' Equity
Balance as of June 30, 20231,180,398,748 81,090,539 $(11,392)$74,161 $(957)$3,938 $65,750 
Net income— — — — — 2,142 2,142 
Dividends declared ($0.65 per share)
— — — — — (745)(745)
Other comprehensive income— — — — 8 — 8 
Stock-based compensation— — — 169 — — 169 
Stock issued for employee stock purchase plan708,049 — — 84 — — 84 
Issuance of vested restricted stock units231,246 — — — — — — 
Shares withheld related to net share settlement of stock awards and stock options(76,318)— — (10)— — (10)
Repurchases of common stock(19,313,159)19,313,159 (2,702)— — — (2,702)
Other, net31,142 (7,641)2 — — — 2 
Balance as of September 30, 20231,161,979,708 100,396,057 $(14,092)$74,404 $(949)$5,335 $64,698 
Balance as of December 31, 20221,233,960,078 22,916,449 $(3,016)$73,941 $(1,046)$(223)$69,656 
Net income— — — — — 6,303 6,303 
Dividends declared ($0.65 per share)
— — — — — (745)(745)
Other comprehensive income— — — — 97 — 97 
Stock-based compensation— — — 509 — — 509 
Stock issued for employee stock purchase plan1,771,475 — — 210 — — 210 
Issuance of vested restricted stock units5,397,316 — — — — — — 
Shares withheld related to net share settlement of stock awards and stock options(1,823,566)— — (267)— — (267)
Repurchases of common stock(77,460,937)77,460,937 (11,073)— — — (11,073)
Other, net135,342 18,671 (3)11 — — 8 
Balance as of September 30, 20231,161,979,708 100,396,057 $(14,092)$74,404 $(949)$5,335 $64,698 
The accompanying notes are an integral part of these condensed consolidated financial statements.
6

Index for Notes to the Condensed Consolidated Financial Statements
T-Mobile US, Inc.
Condensed Consolidated Statement of Stockholders’ Equity
(Unaudited)

(in millions, except shares)Common Stock OutstandingTreasury Stock OutstandingTreasury Shares at CostPar Value and Additional Paid-in CapitalAccumulated Other Comprehensive LossAccumulated DeficitTotal Stockholders' Equity
Balance as of June 30, 20221,254,010,072 1,564,549 $(16)$73,552 $(1,295)$(2,207)$70,034 
Net income— — — — — 508 508 
Other comprehensive income— — — — 32 — 32 
Stock-based compensation— — — 165 — — 165 
Stock issued for employee stock purchase plan802,361 — — 89 — — 89 
Issuance of vested restricted stock units219,301 — — — — — — 
Shares withheld related to net share settlement of stock awards and stock options(67,575)— — (10)— — (10)
Repurchases of common stock(4,892,315)4,892,315 (669)— — — (669)
Other, net32,582 (5,968)— 1 — — 1 
Balance as of September 30, 20221,250,104,426 6,450,896 $(685)$73,797 $(1,263)$(1,699)$70,150 
Balance as of December 31, 20211,249,213,681 1,537,468 $(13)$73,292 $(1,365)$(2,812)$69,102 
Net income— — — — — 1,113 1,113 
Other comprehensive income— — — — 102 — 102 
Stock-based compensation— — — 490 — — 490 
Stock issued for employee stock purchase plan2,079,086 — — 227 — — 227 
Issuance of vested restricted stock units5,380,712 — — — — — — 
Shares withheld related to net share settlement of stock awards and stock options(1,772,442)— — (225)— — (225)
Repurchases of common stock(4,892,315)4,892,315 (669)— — — (669)
Other, net95,704 21,113 (3)13 — — 10 
Balance as of September 30, 20221,250,104,426 6,450,896 $(685)$73,797 $(1,263)$(1,699)$70,150 
The accompanying notes are an integral part of these condensed consolidated financial statements.

7

Index for Notes to the Condensed Consolidated Financial Statements
T-Mobile US, Inc.
Index for Notes to the Condensed Consolidated Financial Statements


8

Index for Notes to the Condensed Consolidated Financial Statements
T-Mobile US, Inc.
Notes to the Condensed Consolidated Financial Statements

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 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. 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.

Dividends

On September 6, 2023, our Board of Directors authorized a stockholder return program of up to $19.0 billion that will run through December 31, 2024 (the “2023-2024 Stockholder Return Program”). The 2023-2024 Stockholder Return Program is expected to consist of additional repurchases of shares of our common stock and the payment of cash dividends. The amount available under the 2023-2024 Stockholder Return Program for share repurchases will be reduced by the amount of any cash dividends declared by us.

Dividends declared are included as a reduction to Retained earnings on our Condensed Consolidated Balance Sheets. We recognize a liability for dividends declared but for which cash has not been paid in Other current liabilities on our Condensed Consolidated Balance Sheets. Dividend cash payments to stockholders will be included in Net cash (used in) provided by financing activities on our Condensed Consolidated Statements of Cash Flows. See Note 10 - Stockholder Return Programs for more information about our 2023-2024 Stockholder Return Program.

9

Index for Notes to the Condensed Consolidated Financial Statements
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 nine months ended September 30, 2023.

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. Our estimate of the upfront payment is subject to Ka’ena Corporation’s underlying business performance and the timing of transaction close, and has been updated to $1.2 billion, 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 the first quarter of 2024.

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.

10

Index for Notes to the Condensed Consolidated Financial Statements
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 9.9% and 8.0% as of September 30, 2023, and December 31, 2022, respectively.

The following table summarizes the EIP receivables, including imputed discounts and related allowance for credit losses:
(in millions)September 30,
2023
December 31,
2022
EIP receivables, gross$7,089 $8,480 
Unamortized imputed discount(453)(483)
EIP receivables, net of unamortized imputed discount6,636 7,997 
Allowance for credit losses(287)(328)
EIP receivables, net of allowance for credit losses and imputed discount$6,349 $7,669 
Classified on our condensed consolidated balance sheets as:
Equipment installment plan receivables, net of allowance for credit losses and imputed discount$4,470 $5,123 
Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount1,879 2,546 
EIP receivables, net of allowance for credit losses and imputed discount$6,349 $7,669 

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 September 30, 2023:
Originated in 2023Originated in 2022Originated prior to 2022Total EIP Receivables, Net of
Unamortized Imputed Discounts
(in millions)PrimeSubprimePrimeSubprimePrimeSubprimePrimeSubprimeTotal
Current - 30 days past due$2,419 $1,355 $1,305 $896 $368 $175 $4,092 $2,426 $6,518 
31 - 60 days past due8 18 7 12 2 2 17 32 49 
61 - 90 days past due5 12 5 10 1 1 11 23 34 
More than 90 days past due5 9 5 11 2 3 12 23 35 
EIP receivables, net of unamortized imputed discount$2,437 $1,394 $1,322 $929 $373 $181 $4,132 $2,504 $6,636 

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.

11

Index for Notes to the Condensed Consolidated Financial Statements
The following table presents write-offs of our EIP receivables by year of origination for the nine months ended September 30, 2023:
(in millions)Originated in 2023Originated in 2022Originated prior to 2022Total Write-offs
Write-offs$84 $243 $54 $381 

Activity for the nine months ended September 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:
September 30, 2023September 30, 2022
(in millions)Accounts Receivable AllowanceEIP Receivables AllowanceTotalAccounts Receivable AllowanceEIP Receivables AllowanceTotal
Allowance for credit losses and imputed discount, beginning of period$167 $811 $978 $146 $630 $776 
<