Note 6 – Additional Financial Information

Supplemental Balance Sheet Information

Cash and Cash Equivalents

T-Mobile is required to restrict cash equivalents as collateral for certain agreements. Restricted cash equivalents included in other current assets were $100 million as of June 30, 2014 and December 31, 2013, respectively.

Accumulated Other Comprehensive Income

There were no significant effects on net income (loss) of amounts reclassified from AOCI for the three and six months ended June 30, 2014.

The following table presents the effects on net income (loss) of amounts reclassified from AOCI (in millions):



		Amount Reclassified from AOCI to Income
AOCI Component	Location	Three Months Ended June 30, 2013			Six Months Ended June 30, 2013
Cross Currency Interest Rate Swaps	Interest expense to affiliates	$	(48	)	$	(53	)
	Income tax effect	18			20
	Net of tax	(30		)	(33		)

Foreign Currency Translation	Other income, net	166			166
	Income tax effect	(62		)	(62		)
	Net of tax	104			104

Total reclassifications, net of tax		$	74		$	71

Supplemental Statements of Comprehensive Income (Loss) Information

Earnings (Loss) Per Share

The computation of basic and diluted earnings (loss) per share was as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
(in millions, except shares and per share amounts)	2014		2013			2014		2013
Basic and Diluted Earnings (Loss) Per Share:
Net income (loss)	$	391	$	(16	)	$	240	$	91

Weighted average shares outstanding - basic	803,923,913		664,603,682			803,226,194		600,302,111
Dilutive effect of outstanding stock options and awards	9,632,224		—			9,676,941		1,392,800
Weighted average shares outstanding - diluted	813,556,137		664,603,682			812,903,135		601,694,911

Earnings (loss) per share - basic	$	0.49	$	(0.02	)	$	0.30	$	0.15
Earnings (loss) per share - diluted	0.48		(0.02		)	0.30		0.15

Potentially dilutive securities were not included in the computation of diluted earnings (loss) per share for certain periods if to do so would have been antidilutive. For the three months ended June 30, 2014, potentially dilutive outstanding stock options of 1,631,748 and unvested stock awards of 65,108 as of June 30, 2014 were excluded. As the Company incurred a net loss for the three months ended June 30, 2013, all outstanding stock options of 11,319,269 and unvested stock awards of 22,911,491 as of June 30, 2013 were excluded. For the six months ended June 30, 2014 and 2013, potentially dilutive outstanding stock options of 1,631,748 and 8,460,878 and unvested stock awards of 87,816 and 22,911,491 as of June 30, 2014 and 2013, respectively, were excluded. Unvested performance stock units were based on the number of shares ultimately expected to vest based on T-Mobile’s business performance against the specified performance goal.

Supplemental Statements of Cash Flows Information

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



	Six Months Ended June 30,
(in millions)	2014		2013
Interest and income tax payments:
Interest payments	$	639	$	583
Income tax payments	23		14
Noncash investing and financing activities:
Increase in accounts payable for purchases of property and equipment	56		173
Short-term debt outstanding for financing of property and equipment purchases	250		193
Retirement of long-term debt to affiliates	—		14,450
Elimination of net unamortized discounts and premiums on long-term debt to affiliates	—		434
Issuance of new long-term debt to affiliates	—		11,200
Settlement of accounts receivable from affiliates and other outstanding balances	—		363
Income tax benefit from debt recapitalization	—		178
Net assets acquired in MetroPCS business combination, excluding cash acquired	—		827