AT&T Wireless 2015 Annual Report Download - page 80

Notes to Consolidated Financial Statements (continued)
Dollars in millions except per share amounts
78 | AT&T INC.
NOTE 17. CONTINGENT LIABILITIES
We are party to numerous lawsuits, regulatory proceedings
and other matters arising in the ordinary course of business.
In evaluating these matters on an ongoing basis, we take
into account amounts already accrued on the balance sheet.
In our opinion, although the outcomes of these proceedings
are uncertain, they should not have a material adverse effect
on our financial position, results of operations or cash flows.
We have contractual obligations to purchase certain
goods or services from various other parties. Our purchase
obligations are expected to be approximately $22,929 in
2016, $9,437 in total for 2017 and 2018, $6,159 in total
for 2019 and 2020 and $10,174 in total for years thereafter.
See Note 10 for a discussion of collateral and credit-risk
contingencies.
is increased by interest expense and estimated future net
cash flows generated and retained by Crown Castle from
operation of the tower sites, and reduced by our contractual
payments. We continue to include the tower assets in
Property, plant and equipment in our consolidated balance
sheets and depreciate them accordingly. At December 31,
2015 and 2014, the tower assets had a balance of $960
and $999, respectively. Our depreciation expense for these
assets was $39 for 2015, and $39 for 2014. The impact of
the transaction on our operating results for the year ended
December 31, 2013 was not material.
Payments made to Crown Castle under this arrangement
were $225 for 2015. At December 31, 2015, the future
minimum payments under the sublease arrangement are
$230 for 2016, $234 for 2017, $239 for 2018, $244 for
2019, $248 for 2020, and $2,304 thereafter.
NOTE 18. ADDITIONAL FINANCIAL INFORMATION
December 31,
Consolidated Balance Sheets 2015 2014
Customer fulfillment costs (included in Other current assets) $ 2,923 $ 2,720
Accounts payable and accrued liabilities:
Accounts payable $21,047 $14,984
Accrued payroll and commissions 2,629 1,967
Current portion of employee benefit obligation 1,766 1,842
Accrued interest 1,974 1,597
Other 2,956 3,202
Total accounts payable and accrued liabilities $30,372 $23,592
Consolidated Statements of Income 2015 2014 2013
Advertising expense $3,632 $3,272 $3,268
Interest expense incurred $4,917 $3,847 $4,224
Capitalized interest (797) (234) (284)
Total interest expense $4,120 $3,613 $3,940
Consolidated Statements of Cash Flows 2015 2014 2013
Cash paid during the year for:
Interest $4,822 $4,099 $4,302
Income taxes, net of refunds 1,851 1,532 1,985
in the Southwest region and nearly 16,000 traditional
wireline employees in our West region will expire in 2016.
After expiration of the current agreements, work stoppages
or labor disruptions may occur in the absence of new
contracts or other agreements being reached. A separate
contract covering only benefits with approximately 40,000
employees in our mobility business expires in 2016, though
there is a no strike/no lock-out clause. Contracts covering
wages and other non-benefit working terms for these
mobility employees are structured on a regional basis.
No customer accounted for more than 10% of consolidated
revenues in 2015, 2014 or 2013.
Labor Contracts As of January 31, 2016, we employed
approximately 281,000 persons. Approximately 45 percent
of our employees are represented by the Communications
Workers of America, the International Brotherhood of
Electrical Workers or other unions. Four-year contracts
covering approximately 24,000 traditional wireline employees
in our Southeast region were ratified on December 4, 2015.
Contracts covering approximately 9,000 mobility employees