Other Financial Information

Other Current Assets

The following table presents details of other current assets in our consolidated balance sheets as of the dates indicated below:



	September 30, 2014		December 31, 2013
	(Dollars in millions)
Prepaid expenses	$	260	266
Materials, supplies and inventory	134		167
Assets held for sale	54		26
Deferred activation and installation charges	105		94
Other	38		44
Total other current assets	$	591	597

Assets held for sale includes several properties that we expect to sell within the next twelve months. During the second quarter of 2014, we began discussions to sell our remaining 700 MHz A-Block wireless spectrum licenses, which we purchased in 2008 but never placed into service. As a result of changes in market conditions and prevailing spectrum prices, we recorded a second quarter 2014 impairment charge of $14 million, which is included in other income, net in our consolidated statements of operations for the nine months ended September 30, 2014. During the second quarter of 2014, we reclassified the remaining $39 million of wireless spectrum assets from other intangible assets to assets held for sale, as we anticipate completing the sale of such assets within one year. We evaluated spectrum prices using market conditions to determine a Level 3 estimate of the fair value of the wireless spectrum licenses. In July 2014, we entered into a definitive agreement to sell and assign our remaining 700 MHz A-Block wireless spectrum licenses for $39 million in cash in the aggregate. The sale closed on November 3, 2014, and we received $39 million in cash in the aggregate.

Selected Current Liabilities

Current liabilities reflected in our consolidated balance sheets include accounts payable and other current liabilities as of the dates indicated below:



	September 30, 2014		December 31, 2013
	(Dollars in millions)
Accounts payable	$	1,069	1,111
Other current liabilities:
Accrued rent	$	33	52
Legal reserves	18		273
Other	173		189
Total other current liabilities	$	224	514

Included in accounts payable at September 30, 2014 and December 31, 2013, were $77 million and $88 million, respectively, representing book overdrafts and $120 million and $140 million, respectively, associated with capital expenditures. Included in legal reserves at December 31, 2013, was $235 million related to the then tentative settlement agreement with the trustees in the KPNQwest Dutch bankruptcy proceeding. In February 2014, we paid approximately €171 million (or approximately $235 million) to settle this proceeding.