Additional Financial Information

6 Months Ended

Jun. 30, 2020

Supplemental Financial Statement Elements [Abstract]

Note 19 – Additional Financial Information

Supplemental Condensed Consolidated Balance Sheets Information

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities are summarized as follows:


(in millions)	June 30, 2020		December 31, 2019
Accounts payable	$	4,960	$	4,322
Payroll and related benefits	1,182		802
Property and other taxes, including payroll	1,242		682
Interest	780		227
Commissions	338		251

Toll and interconnect	224		156
Advertising	140		127
Other	482		179
Accounts payable and accrued liabilities	$	9,348	$	6,746

Book overdrafts included in accounts payable and accrued liabilities were $380 million and $463 million as of June 30, 2020 and December 31, 2019, respectively.

Supplemental Condensed Consolidated Statements of Comprehensive Income Information

Related Party Transactions

Deutsche Telekom

We have related party transactions associated with DT or its affiliates in the ordinary course of business, which are included in the Consolidated Financial Statements.

The following table summarizes the impact of significant transactions with DT or its affiliates included in Operating expenses in the Condensed Consolidated Statements of Comprehensive Income:


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2020		2019		2020		2019
Discount related to roaming expenses	$	(2)	$	—	$	(5)	$	(2)
Fees incurred for use of the T-Mobile brand	20		23		43		44

International long distance agreement	11		11		22		20

We have an agreement with DT in which we receive reimbursement of certain administrative expenses, which were $1 million and $3 million for the three months ended June 30, 2020 and 2019, respectively, and $3 million and $5 million for the six months ended June 30, 2020 and 2019, respectively.

Brightstar

We have arrangements with Brightstar, whereby Brightstar provides supply chain and inventory management services to us in our indirect channels. As of June 30, 2020, T-Mobile began the process of terminating and restructuring most of its arrangements with Brightstar, save for reverse logistics and trade-in services.

Amounts included in our consolidated financial statements associated with these supply chain and inventory management arrangements with Brightstar were as follows:


(in millions)	Three and Six Months Ended June 30, 2020
Consolidated balance sheet:
Accounts receivable	$	23
Accounts payable and accrued expenses and other current liabilities	46
Consolidated income statement:
Roaming and other service revenues	$	19
Equipment sales	42
Cost of equipment sales	66

SoftBank

On June 22, 2020, we entered into a Master Framework Agreement and related transactions with SoftBank related to the SoftBank Monetization as described in Note 14 - SoftBank Equity Transaction. On July 27, 2020, in connection with the SoftBank Monetization, the Rights Offering exercise period closed, and on August 3, 2020, the Rights Offering closed, resulting in the sale of 19,750,000 shares of our common stock. On August 3, 2020, upon completion of the SoftBank Monetization, DT and SoftBank held, directly or indirectly, approximately 43.4% and 8.6%, respectively, of the outstanding T-Mobile common stock, with the remaining approximately 48.0% of the outstanding T-Mobile common stock held by other stockholders. As a result of the Proxy Agreements, DT has voting control as of August 3, 2020 over approximately 52.4% of the outstanding T-Mobile common stock. In addition, as provided for in the Master Framework Agreement, DT also holds certain call options over approximately 101.5 million shares of our common stock held by SBGC.

For more information regarding our related party transactions with SoftBank, see Note 2 - Business Combination and Note 14 - SoftBank Equity Transaction of the Notes to the Condensed Consolidated Financial Statements.

Supplemental Consolidated Statements of Cash Flows Information

The following table summarizes T-Mobile’s supplemental cash flow information:


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2020		2019		2020		2019
Interest payments, net of amounts capitalized	$	608	$	245	$	949	$	585
Operating lease payments	$	1,269	$	703	$	2,144	$	1,391
Income tax payments	$	31	$	40	$	55	$	72
Non-cash investing and financing activities

Non-cash beneficial interest obtained in exchange for securitized receivables	$	1,486	$	1,616	$	3,099	$	3,128
Non-cash consideration for the acquisition of Sprint	$	33,533	$	—	$	33,533	$	—
Decrease in accounts payable and accrued liabilities for purchases of property and equipment	$	(38)	$	(113)	$	(339)	$	(446)
Leased devices transferred from inventory to property and equipment	$	1,444	$	167	$	1,753	$	314
Returned leased devices transferred from property and equipment to inventory	$	(538)	$	(67)	$	(597)	$	(124)
Short-term debt assumed for financing of property and equipment	$	38	$	50	$	38	$	300
Operating lease right-of-use assets obtained in exchange for lease obligations	$	658	$	1,400	$	1,213	$	2,094
Financing lease right-of-use assets obtained in exchange for lease obligations	$	515	$	368	$	693	$	548