T-Mobile US Inc. (TMUS)
Analysis of Inventory
High level of difficulty
Accounting Policy on Inventory
Inventories consist primarily of wireless devices and accessories, which are valued at the lower of cost or market. Cost is determined using standard cost which approximates average cost. Shipping and handling costs paid to wireless device and accessories vendors, and costs to refurbish used devices recovered through T-Mobile’s device upgrade programs are included in the standard cost of inventory. T-Mobile records inventory write-downs to net realizable value for obsolete and slow-moving items based on inventory turnover trends and historical experience.
Source: 10-K (filing date: 2019-02-07).
T-Mobile US Inc., balance sheet: inventory
US$ in millions
|Inventories||Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.||T-Mobile US Inc.’s inventories increased from 2016 to 2017 but then declined significantly from 2017 to 2018.|