8-KOther EventsExhibits & Filings

T-Mobile US, Inc. 8-K Report, Corporate Update (Jun 18, 2018)

Filed June 18, 2018For Securities:TMUSTMUSZTMUSITMUSL

Summary

T-Mobile US, Inc. (TMUS) filed a Form 8-K on June 18, 2018, to retrospectively reclassify certain previously reported financial information within its 2017 Annual Report (Form 10-K). This reclassification is a result of adopting a new accounting standard for cash flows, specifically Accounting Standards Update (ASU) 2016-15, effective January 1, 2018. The primary impact of this change involves the presentation of cash flows related to the Company's securitization transactions and debt-related cash payments. Specifically, cash inflows from beneficial interests in securitization transactions will now be classified under Investing Activities instead of Operating Activities. Additionally, cash outflows for debt prepayment and extinguishment costs will be reclassified from Operating Activities to Financing Activities. This retrospective application ensures consistency across all presented periods within the 2017 Form 10-K.

Key Highlights

  • 1T-Mobile US is retrospectively reclassifying financial data from its 2017 10-K filing.
  • 2The reclassification is due to the adoption of Accounting Standards Update (ASU) 2016-15, effective January 1, 2018.
  • 3Cash inflows from beneficial interests in securitization transactions are now classified under Investing Activities (previously Operating Activities).
  • 4Cash outflows for debt prepayment and extinguishment costs are now classified under Financing Activities (previously Operating Activities).
  • 5This change impacts the presentation of the Consolidated Statements of Cash Flows.
  • 6The retrospective application applies to all periods presented in the 2017 Form 10-K.
  • 7Updated financial data includes Item 6 (Selected Financial Data), Item 7 (MD&A), and Item 8 (Financial Statements).

Frequently Asked Questions

This 8-K filing is to announce a retrospective reclassification of certain previously reported financial information in T-Mobile's 2017 Annual Report (Form 10-K) due to the adoption of a new accounting standard for cash flows (ASU 2016-15).

The new standard changes the classification of two types of cash flows: cash inflows from securitization transactions (now Investing Activities) and cash outflows for debt prepayment/extinguishment (now Financing Activities). Previously, both were reported under Operating Activities.

No, this is a change in accounting presentation and classification only. The total amounts of cash flows and the company's overall financial performance or cash position remain unchanged. It only affects how these transactions are categorized within the different sections of the Statement of Cash Flows.

T-Mobile adopted the new cash flow standard on January 1, 2018. This filing retrospectively applies the standard to all periods presented in the 2017 Form 10-K to ensure consistency.