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:



	June 30, 2014		December 31, 2013
	(Dollars in millions)
Prepaid expenses	$	284	266
Materials, supplies and inventory	132		167
Assets held for sale	54		26
Deferred activation and installation charges	102		94
Other	56		44
Total other current assets	$	628	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 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 (expense) income, net in our consolidated statements of operations for the three and six months ended June 30, 2014. As of June 30, 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 is expected to close within one year, subject to regulatory approval and other customary closing conditions.

Selected Current Liabilities

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



	June 30, 2014		December 31, 2013
	(Dollars in millions)
Accounts payable	$	1,153	1,111
Other current liabilities:
Accrued rent	$	38	52
Legal reserves	24		273
Other	146		189
Total other current liabilities	$	208	514

Included in accounts payable at June 30, 2014 and December 31, 2013, were $84 million and $88 million, respectively, representing book overdrafts and $107 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.