v3.24.3
Debt
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Debt
Note 8 – Debt

The following table sets forth the debt balances and activity as of, and for the nine months ended, September 30, 2024:
(in millions)December 31,
2023
Proceeds from Issuances and Borrowings (1)
Note RedemptionsRepayments
Reclassifications (1)
Other (2)
September 30,
2024
Short-term debt$3,619 $— $(2,500)$(669)$5,458 $(57)$5,851 
Long-term debt69,903 8,089 — — (5,458)(12)72,522 
Total debt to third parties73,522 8,089 (2,500)(669)— (69)78,373 
Long-term debt to affiliates1,496 — — — — 1 1,497 
Total debt$75,018 $8,089 $(2,500)$(669)$— $(68)$79,870 
(1)Issuances and borrowings and reclassifications are recorded net of accrued or paid issuance costs and discounts.
(2)Other includes the amortization of premiums, discounts, debt issuance costs and consent fees and the impact from changes in foreign currency exchange rates.

Our effective interest rate, excluding the impact of derivatives and capitalized interest, was approximately 4.0% and 4.0% on weighted-average debt outstanding of $78.1 billion and $77.2 billion for the three months ended September 30, 2024 and 2023, respectively, and 4.1% and 4.0% on weighted-average debt outstanding of $78.1 billion and $75.5 billion for the nine months ended September 30, 2024 and 2023, respectively. The weighted-average debt outstanding was calculated by applying an average of the monthly ending balances of total short-term and long-term debt to third parties and short-term and long-term debt to affiliates, net of unamortized premiums, discounts, debt issuance costs and consent fees.

Issuances and Borrowings

During the nine months ended September 30, 2024, we issued the following Senior Notes:
(in millions)Principal IssuancesDiscounts and Issuance Costs, NetNet Proceeds from Issuance of Long-Term DebtIssue Date
4.850% Senior Notes due 2029
$1,000 $(6)$994 January 12, 2024
5.150% Senior Notes due 2034
1,250 (11)1,239 January 12, 2024
5.500% Senior Notes due 2055
750 (7)743 January 12, 2024
3.550% Senior Notes due 2029 (EUR-denominated)
645 (3)642 May 8, 2024
3.700% Senior Notes due 2032 (EUR-denominated)
806 (4)802 May 8, 2024
3.850% Senior Notes due 2036 (EUR-denominated)
699 (7)692 May 8, 2024
4.200% Senior Notes due 2029
700 (4)696 September 26, 2024
4.700% Senior Notes due 2035
900 (6)894 September 26, 2024
5.250% Senior Notes due 2055
900 (10)890 September 26, 2024
Total of Senior Notes issued$7,650 $(58)$7,592 
5.050% Class A Senior ABS Notes due 2029
$500 $(3)$497 February 14, 2024
Total of ABS Notes issued$500 $(3)$497 

Note Redemption and Repayments

During the nine months ended September 30, 2024, we made the following redemption and repayments:
(in millions)Principal AmountPayment Date
7.125% Senior Notes due 2024
$2,500 June 15, 2024
Total Redemption$2,500 
4.738% Secured Series 2018-1 A-1 Notes due 2025
$394 Various
5.152% Series 2018-1 A-2 Notes due 2028
275 Various
Total Repayments$669 

Subsequent to September 30, 2024, on October 11, 2024, we delivered notice of redemption on $1.5 billion aggregate principal amount of our 7.625% Senior Notes due 2025. We will redeem the notes at par on November 15, 2024.
Asset-backed Notes

On February 14, 2024, we issued $500 million of 5.050% Class A Senior ABS Notes to third parties in a private placement transaction. These ABS Notes are secured by $658 million of gross EIP receivables and future collections on such receivables. Net proceeds of $497 million from these ABS Notes are presented in Proceeds from issuance of long-term debt on our Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024.

As of September 30, 2024, $1.3 billion of our ABS Notes were secured in total by $1.6 billion of gross EIP receivables and future collections on such receivables. Our ABS Notes and the assets securing this debt are included on our Condensed Consolidated Balance Sheets.

The expected maturities of our ABS Notes as of September 30, 2024, were as follows:
(in millions)Expected Maturities
2024$198 
2025552 
2026459 
202741 
Total$1,250 

Variable Interest Entities

In connection with our ABS Notes issuances, we formed a wholly owned subsidiary, which qualifies as a bankruptcy remote entity (the “ABS BRE”), and a trust (the “ABS Trust” and together with the ABS BRE, the “ABS Entities”), in which the ABS BRE holds a residual interest. Each of the ABS Entities meet the definition of a VIE for which we have determined that we are the primary beneficiary, as we have the power to direct the activities of the ABS Entities that most significantly impact their performance. Accordingly, we include the balances and results of operations of the ABS Entities in our condensed consolidated financial statements.

The following table summarizes the carrying amounts and classification of assets and liabilities included in our Condensed Consolidated Balance Sheets with respect to the ABS Entities:
(in millions)September 30,
2024		December 31,
2023
Assets
Equipment installment plan receivables, net$1,218 $739 
Equipment installment plan receivables due after one year, net279 168 
Other current assets148 101 
Liabilities
Accounts payable and accrued liabilities$2 $1 
Short-term debt707 198 
Long-term debt540 550 

See Note 4 – Receivables and Related Allowance for Credit Losses for additional information on the EIP receivables used to secure the ABS Notes.

Subsequent to September 30, 2024, on October 9, 2024, we issued $500 million of 4.250% Class A Senior ABS Notes to third parties in a private placement transaction for net proceeds of approximately $498 million. These ABS Notes are secured by $668 million of gross EIP receivables and future collections on such receivables. The expected maturities of these ABS notes are $136 million due 2026 and $364 million due 2027.

Restricted Cash

Certain provisions of our debt agreements require us to maintain specified cash collateral balances. Amounts associated with these balances are considered to be restricted cash. See Note 14 – Additional Financial Information for our reconciliation of Cash and cash equivalents, including restricted cash.