Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information
Our common stock is traded on the NASDAQ Global Select Market under the symbol “TMUS.” We are included within the S&P 500 in the Wireless Telecommunication Services GICS (Global Industry Classification Standard) Sub-Industry index. As of January 31, 2021, there were 16,299 registered stockholders of record of our common stock, but we estimate the total number of stockholders to be much higher as a number of our shares are held by brokers or dealers for their customers in street name.
We have never paid or declared any cash dividends on our common stock, and we do not intend to declare or pay any cash dividends on our common stock in the foreseeable future. Our credit facilities and indentures governing our long-term debt to affiliates and third parties contain covenants that, among other things, restrict our ability to declare or pay dividends on our common stock. We currently intend to use future earnings, if any, to invest in our business and for general corporate purposes, including the integration of T-Mobile’s and Sprint’s businesses. Therefore, we do not anticipate paying any cash dividends on our common stock in the foreseeable future, and capital appreciation, if any, of our common stock will be the sole source of potential gain.
Performance Graph
The graph below compares the five-year cumulative total returns of T-Mobile, the S&P 500 index, the NASDAQ Composite index and the Dow Jones US Mobile Telecommunications TSM index. The graph tracks the performance of a $100 investment, with the reinvestment of all dividends, from December 31, 2015 to December 31, 2020.
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The five-year cumulative total returns of T-Mobile, the S&P 500 index, the NASDAQ Composite index and the Dow Jones US Mobile Telecommunications TSM index, as illustrated in the graph above, are as follows:
At December 31,
2015 2016 2017 2018 2019 2020
T-Mobile US, Inc. $ 100.00 $ 147.01 $ 162.35 $ 162.60 $ 200.46 $ 344.71
S&P 500 100.00 111.96 136.40 130.42 171.49 203.04
NASDAQ Composite 100.00 108.87 141.13 137.12 187.44 271.64
Dow Jones US Mobile Telecommunications TSM 100.00 127.44 130.32 155.09 175.87 191.76
The stock price performance included in this graph is not necessarily indicative of future stock price performance.
Item 6. Selected Financial Data
The following selected financial data are derived from our consolidated financial statements. The data below should be read together with Risk Factors included in Part I, Item 1A, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Part II, Item 7 and Financial Statements and Supplementary Data included in Part II, Item 8 of this Form 10-K.
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Selected Financial Data
(in millions, except per share and customer amounts) As of and for the Year Ended December 31,
2020 (1)
2019 (2)
2018 (3)
2017 2016
Statement of Operations Data
Total service revenues $ 50,395 $ 34,500 $ 32,441 $ 30,525 $ 28,085
Total revenues 68,397 44,998 43,310 40,604 37,490
Operating income 6,636 5,722 5,309 4,888 4,050
Total other expense, net (3,106) (1,119) (1,392) (1,727) (1,723)
Income tax (expense) benefit (4)
(786) (1,135) (1,029) 1,375 (867)
Income from continuing operations 2,744 3,468 2,888 4,536 1,460
Income from discontinued operations, net of tax (6)
320 — — — —
Net income 3,064 3,468 2,888 4,536 1,460
Net income attributable to common stockholders 3,064 3,468 2,888 4,481 1,405
Earnings per share
Continuing operations $ 2.40 $ 4.06 $ 3.40 $ 5.39 $ 1.71
Discontinued operations (6)
0.28 — — — —
Basic $ 2.68 $ 4.06 $ 3.40 $ 5.39 $ 1.71
Continuing operations $ 2.37 $ 4.02 $ 3.36 $ 5.20 $ 1.69
Discontinued operations (6)
0.28 — — — —
Diluted $ 2.65 $ 4.02 $ 3.36 $ 5.20 $ 1.69
Balance Sheet Data
Cash and cash equivalents $ 10,385 $ 1,528 $ 1,203 $ 1,219 $ 5,500
Property and equipment, net (2)
41,175 21,984 23,359 22,196 20,943
Spectrum licenses 82,828 36,465 35,559 35,366 27,014
Total assets (2)
200,162 86,921 72,468 70,563 65,891
Total debt and financing lease liabilities, excluding tower obligations (2)
73,632 27,272 27,547 28,319 27,786
Stockholders' equity 65,344 28,789 24,718 22,559 18,236
Statement of Cash Flows and Operational Data
Net cash provided by operating activities (5)
$ 8,640 $ 6,824 $ 3,899 $ 3,831 $ 2,779
Purchases of property and equipment (11,034) (6,391) (5,541) (5,237) (4,702)
Purchases of spectrum licenses and other intangible assets, including deposits (1,333) (967) (127) (5,828) (3,968)
Proceeds related to beneficial interests in securitization transactions (5)
3,134 3,876 5,406 4,319 3,356
Net cash provided by (used in) financing activities (5)
13,010 (2,374) (3,336) (1,367) 463
Total customers (in thousands) 102,064 67,894 63,656 58,715 54,240
(1) On April 1, 2020, we completed the Merger with Sprint. Our financial results include the consolidated operations of T-Mobile and Sprint subsequent to the date of Merger close.
(2) On January 1, 2019, we adopted Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” and all the related amendments (collectively, the “new lease standard”), using the modified retrospective method with the cumulative effect of initially applying the guidance recognized at the date of initial application. Comparative information has not been restated and continues to be reported under the standards in effect for those periods.
(3) On January 1, 2018, we adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” and all the related amendments (collectively, the “new revenue standard”), using the modified retrospective method with the cumulative effect of initially applying the guidance recognized at the date of initial application. Comparative information has not been restated and continues to be reported under the standards in effect for those periods.
(4) In December 2017, the Tax Cuts and Jobs Act of 2017 (“TCJA”) was signed into legislation. The TCJA included numerous changes to existing tax law, including a permanent reduction in the federal corporate income tax rate from 35% to 21%. The rate reduction took place on January 1, 2018. We recognized a net tax benefit of $2.2 billion associated with the enactment of the TCJA in Income tax expense in our Consolidated Statements of Comprehensive Income in the fourth quarter of 2017, primarily due to a re-measurement of deferred tax assets and liabilities.
(5) On January 1, 2018, we adopted ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (the “new cash flow standard”) which impacted the presentation of our cash flows related to our beneficial interests in securitization transactions, which is the deferred purchase price, resulting in a reclassification of cash inflows from Operating activities to Investing activities of approximately $4.3 billion and $3.4 billion for the years ended December 31, 2017 and 2016, respectively, in our Consolidated Statements of Cash Flows. The new cash flow standard also impacted the presentation of our cash payments for debt prepayment and debt extinguishment costs, resulting in a reclassification of cash outflows from Operating activities to Financing activities of $188 million for the year ended December 31, 2017, in our Consolidated Statements of Cash Flows. There were no cash payments for debt prepayment and debt extinguishment costs during the year ended December 31, 2016. We have applied the new cash flow standard retrospectively to all periods presented.
(6) In connection with obtaining regulatory approval for the Merger, on July 1, 2020, DISH acquired the prepaid wireless business operated under the Boost Mobile and Sprint prepaid brands (excluding the Assurance brand Lifeline customers and the prepaid wireless customers of Shentel and Swiftel Communications, Inc.), the results of which prior to the divestiture are presented in Income from discontinued operations, net of tax.
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