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 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 restructuring expenses incurred in connection with our UScellular Acquisition restructuring initiatives:



(in millions)	Three Months Ended September 30, 2026		Nine Months Ended September 30, 2026		Incurred to Date
Contract termination costs	$	19	$	111	$	143
Severance costs	9		66		129
Network decommissioning	11		37		53
Total restructuring plan expenses	$	39	$	214	$	325

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

Our UScellular Acquisition restructuring initiatives also include the acceleration or termination of certain of our operating leases for cell sites, switch sites and retail stores. Incremental expenses associated with terminated leases and leases for which we have recognized accelerated lease expense were $10 million and $321 million for the three and nine months ended September 30, 2026, respectively, compared to no accelerated lease expenses incurred during the three and nine months ended September 30, 2025. These expenses are included in Cost of services and Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income.

Additionally, we recognized $242 million of accelerated depreciation for the nine months ended September 30, 2026, primarily related to assets associated with the decommissioning of cell sites, compared to no accelerated depreciation incurred during the three months ended September 30, 2026 and 2025, and the nine months ended September 30, 2025. These expenses are included in Depreciation and amortization on our Condensed Consolidated Statements of Comprehensive Income.

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


(in millions)	December 31, 2025		Expenses Incurred		Cash Payments		September 30, 2026
Contract termination costs	$	31	$	111	$	(99)	$	43
Severance costs	59		66		(70)		55
Network decommissioning	1		37		(36)		2
Total	$	91	$	214	$	(205)	$	100

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

We expect to incur substantially all costs related to our UScellular Acquisition restructuring activities 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.

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.



(in millions)	Three Months Ended September 30, 2026		Nine Months Ended September 30, 2026		Incurred to Date
Contract termination costs	$	9	$	49	$	54
Network decommissioning	21		82		146
Total restructuring plan expenses	$	30	$	131	$	200

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

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


(in millions)	December 31, 2025		Expenses Incurred		Cash Payments		Adjustments for Non-Cash Items (1)		September 30, 2026
Contract termination costs	$	—	$	49	$	(36)	$	—	$	13
Network decommissioning	1		82		(25)		(13)		45
Total	$	1	$	131	$	(61)	$	(13)	$	58

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

Our Network Restructuring Initiative is expected to be completed prior to the end of 2027. 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 “2025-2026 Workforce Transformation”).

The following table summarizes the restructuring expenses incurred in connection with our 2025-2026 Workforce Transformation initiative:



(in millions)	Three Months Ended September 30, 2026		Nine Months Ended September 30, 2026		Incurred to Date
Severance costs	$	—	$	141	$	531

The restructuring expenses associated with our 2025-2026 Workforce Transformation initiative are included in Cost of services and Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income.

The changes in the liabilities associated with our 2025-2026 Workforce Transformation initiative, including restructuring expenses incurred and cash payments, are as follows:

The liabilities accrued in connection with our 2025-2026 Workforce Transformation initiative are presented in Accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets.

We have incurred substantially all of the costs associated with our 2025-2026 Workforce Transformation. We expect substantially all remaining associated employee separations and related cash outflows to occur throughout 2026.

In connection with our ongoing digital initiatives to simplify routine transactions, as well as enhance customer experiences by transitioning in part to large-format experience stores, we began closing certain dealer- and corporate-owned stores in the second quarter of 2026. Costs associated with the closure of stores acquired in the UScellular Acquisition are included within UScellular Acquisition restructuring initiatives.

Restructuring expenses incurred in connection with these retail initiatives include contract termination, severance and store decommissioning costs. During the three and nine months ended September 30, 2026, we recorded a pre-tax charge of $31 million and $133 million, respectively, related to these retail initiatives, which is included in Selling, general and administrative expenses on our Condensed Consolidated Statements of Comprehensive Income. Our liabilities associated with our retail initiatives as of September 30, 2026, were $40 million and are presented in Accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets.

We are evaluating additional restructuring activities associated with our retail initiatives, which are dependent on negotiations with certain counterparties and the expected impact on our business operations.