Note 2 - Significant Transactions

Business Combinations

During the first half of 2018, we completed the following acquisitions which were accounted for as business combinations:


•	On January 1, 2018, we closed on our previously announced Unit Purchase Agreement to acquire the remaining equity in Iowa Wireless Services, LLC (“IWS”), a 54% owned unconsolidated subsidiary, for a purchase price of $25 million.


•	On January 22, 2018, we completed our acquisition of television innovator Layer3 TV, Inc. (“Layer3 TV”) for cash consideration of $318 million.

Proposed Sprint Transaction

On April 29, 2018, we entered into a Business Combination Agreement (the “Business Combination Agreement”) to merge with Sprint Corporation (“Sprint”).

See Note 3 - Business Combinations for further information.

Hurricane Impacts

During the first quarter of 2018, we recognized $36 million in incremental costs to maintain services in Puerto Rico related to hurricanes that occurred in 2017. Additional costs incurred during the second quarter were immaterial and are expected to be immaterial during the remainder of 2018. We received reimbursement payments from our insurance carriers for property damage of $94 million during the first quarter of 2018, previously accrued for as a receivable as of December 31, 2017, and $70 million during the second quarter of 2018. We continue to work with our insurance carriers and expect additional reimbursement related to these hurricanes in future periods.

The following table shows the hurricane impacts in our Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2018 are as follows:



	Three Months Ended June 30, 2018								Six Months Ended June 30, 2018
(in millions, except per share amounts)	Gross		Reim- bursement			Net			Gross			Reim- bursement			Net
Increase (decrease)
Cost of services	$	—	$	(70	)	$	(70	)	$	36		$	(70	)	$	(34	)
Total operating expenses	$	—	$	(70	)	$	(70	)	$	36		$	(70	)	$	(34	)

Operating income (loss)	$	—	$	70		$	70		$	(36	)	$	70		$	34
Net income (loss)	$	—	$	45		$	45		$	(23	)	$	45		$	22

Earnings per share - basic	$	—	$	0.06		$	0.06		$	(0.03	)	$	0.06		$	0.03
Earnings per share - diluted	$	—	$	0.06		$	0.06		$	(0.03	)	$	0.06		$	0.03

Sales of Certain Receivables

In February 2018, the service receivable sale agreement was amended to extend the scheduled expiration date to March 2019. See Note 5 – Sales of Certain Receivables for further information.

Debt

During the first half of 2018, we completed significant transactions with both third parties and affiliates related to the issuance, borrowing and redemption of debt. See Note 9 - Debt for further information.

Repurchases of Common Stock

During the first half of 2018, we made additional repurchases of our common stock. Additionally, during the first quarter of 2018, Deutsche Telekom AG (“DT”), our majority stockholder and an affiliated purchaser, made additional purchases of our common stock. See Note 12 – Repurchases of Common Stock for further information.