Upon completing the UScellular Acquisition on August 1, 2025, we began implementing restructuring initiatives to realize cost efficiencies and eliminate redundancies. The major activities associated with the UScellular Acquisition restructuring initiatives will include contract termination costs associated with the rationalization of retail stores, distribution channels, duplicative network and backhaul services and other agreements, severance costs associated with the integration of redundant processes and functions and the decommissioning of certain cell sites and distributed antenna systems to achieve synergies in network costs.

The following table summarizes the expenses incurred in connection with our UScellular Acquisition restructuring initiatives for the year ended December 31, 2025:



(in millions)	Expenses Incurred
Contract termination costs	$	32
Severance costs	63
Network decommissioning	16
Total restructuring plan expenses	$	111

The expenses associated with our UScellular Acquisition restructuring initiatives are included in Cost of services and Selling, general and administrative expenses on our Consolidated Statements of Comprehensive Income.

The changes in the liabilities associated with our UScellular Acquisition restructuring initiatives, including expenses incurred and cash payments, are as follows:


(in millions)	August 1, 2025		Expenses Incurred		Cash Payments		Adjustments for Non-Cash Items (1)		December 31, 2025
Contract termination costs	$	—	$	32	$	(1)	$	—	$	31
Severance costs	—		63		(4)		—		59
Network decommissioning	—		16		(7)		(8)		1
Total	$	—	$	111	$	(12)	$	(8)	$	91

The liabilities accrued in connection with our UScellular Acquisition restructuring initiatives are presented in Accounts payable and accrued liabilities on our Consolidated Balance Sheets.

Our UScellular Acquisition restructuring activities are expected to occur over the next two years with substantially all costs incurred by the end of fiscal year 2027. We are evaluating additional restructuring initiatives associated with the UScellular Acquisition, which are dependent on consultations and negotiations with certain counterparties and the expected impact on our business operations, which could affect the amount or timing of the restructuring costs and related payments.

Recent technological advancements have enhanced our Customer-Driven Coverage insights, enabling us to identify, assess and shut down low customer value sites. In the fourth quarter of 2025, we began implementing restructuring initiatives to identify and realize these cost savings on our network, excluding activities associated with the UScellular Acquisition (the “Network Restructuring Initiative”). The major activities associated with the Network Restructuring Initiative include the rationalization of network and backhaul services and the decommissioning of cell sites and distributed antenna systems to reduce our overall network cost.

The following table summarizes the expenses incurred in connection with our Network Restructuring Initiative for the year ended December 31, 2025:

The expenses associated with our Network Restructuring Initiative are included in Cost of services on our Consolidated Statements of Comprehensive Income.

Our Network Restructuring Initiative also includes the termination of certain of our operating leases for cell sites and switch sites. Incremental expenses associated with terminated leases and leases for which we have recognized accelerated lease expense were $24 million for the year ended December 31, 2025, and are included in Cost of services on our Consolidated Statements of Comprehensive Income.

Additionally, we recognized $97 million of accelerated depreciation for the year ended December 31, 2025, related to assets associated with the decommissioning of cell sites, which is included in Depreciation and amortization on our Consolidated Statements of Comprehensive Income.

The changes in the liabilities associated with our Network Restructuring Initiative, including expenses incurred and cash payments, are as follows:


(in millions)	December 31, 2024		Expenses Incurred		Cash Payments		Adjustments for Non-Cash Items (1)		December 31, 2025
Contract termination costs	$	—	$	5	$	(5)	$	—	$	—
Network decommissioning	—		64		(5)		(58)		1
Total	$	—	$	69	$	(10)	$	(58)	$	1

The liabilities accrued in connection with our Network Restructuring Initiative are presented in Accounts payable and accrued liabilities on our Consolidated Balance Sheets.

Our Network Restructuring Initiative is expected to occur over the next two years with a majority of costs incurred by the end of fiscal year 2026. We are evaluating additional restructuring activities associated with the Network Restructuring Initiative, which are dependent on consultations and negotiations with certain counterparties and the expected impact on our business operations, which could affect the amount or timing of the restructuring costs and related payments.

In the fourth quarter of 2025, we began implementing a restructuring initiative to streamline operations by centralizing leaders and teams, reducing organizational layers and eliminating duplicative roles (the “2025 Workforce Transformation”).

We recorded a pre-tax charge of $390 million during the year ended December 31, 2025, related to the 2025 Workforce Transformation, which is included in Cost of services and Selling, general and administrative expenses on our Consolidated Statements of Comprehensive Income.

The changes in the liabilities associated with our 2025 Workforce Transformation initiative, including expenses incurred and cash payments, are as follows:

The liabilities accrued in connection with our 2025 Workforce Transformation initiative are presented in Accounts payable and accrued liabilities on our Consolidated Balance Sheets.

We have incurred a majority of the costs associated with our 2025 Workforce Transformation initiative, with the remaining costs expected to be substantially incurred by the end of the first quarter of 2026. We expect substantially all associated employee separations and related cash outflows to occur in 2026.

Upon closing the Sprint Merger in April 2020, we began implementing restructuring initiatives to realize cost efficiencies and reduce redundancies. The major activities associated with the Sprint Merger restructuring initiatives included contract termination costs associated with the rationalization of retail stores, distribution channels, duplicative network and backhaul services and other agreements, severance costs associated with the integration of redundant processes and functions and the decommissioning of certain small cell sites and distributed antenna systems to achieve Sprint Merger synergies in network costs.

As of June 30, 2024, we have incurred substantially all restructuring and integration costs associated with the Sprint Merger and, accordingly, no longer separately disclose Sprint Merger-related costs. The cash payments for the Sprint Merger-related costs incurred extend beyond 2025.



(in millions)	Year Ended December 31, 2023		Year Ended December 31, 2024		Incurred to Date
Contract termination costs	$	45	$	4	$	472
Severance costs	3		—		574
Network decommissioning	289		91		1,857
Total restructuring plan expenses	$	337	$	95	$	2,903

The expenses associated with our Sprint Merger restructuring initiatives are included in Cost of services and Selling, general and administrative expenses on our Consolidated Statements of Comprehensive Income.

Our Sprint Merger restructuring initiatives also included the acceleration or termination of certain of our operating and financing leases for cell sites, switch sites, retail stores, network equipment and office facilities. Incremental expenses associated with terminated leases and leases for which we have recognized accelerated lease expense were $91 million and $390 million for the years ended December 31, 2024 and 2023, respectively, and are included in Cost of services and Selling, general and administrative expenses on our Consolidated Statements of Comprehensive Income.

In August 2023, we implemented an initiative to reduce the size of our workforce by approximately 5,000 positions, just under 7% of our total employee base, primarily in corporate and back-office functions, and some technology roles (the “2023 Workforce Reduction”).

The following table summarizes the expenses incurred in connection with the 2023 Workforce Reduction initiatives:



(in millions)	Year Ended December 31, 2023		Year Ended December 31, 2024		Year Ended December 31, 2025		Incurred to Date
Severance costs (recoveries)	$	462	$	(5)	$	(3)	$	454

The expenses associated with the 2023 Workforce Reduction initiatives are included in Cost of services and Selling, general and administrative expenses on our Consolidated Statements of Comprehensive Income.