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Sales Of Receivables
 9 Months Ended
Sep. 30, 2024
Receivables [Abstract]  
Sales Of Receivables
NOTE 8. SALES OF RECEIVABLES
 
We have agreements with various third-party financial institutions pertaining to the sales of certain types of our accounts receivable. The most significant of these programs are discussed in detail below and generally consist of (1) receivables arising from equipment installment plans, which are sold for cash and beneficial interests, such as deferred purchase price, when applicable, and (2) revolving trade receivables, which are sold for cash. Under the terms of our agreements for these programs, we continue to service the transferred receivables on behalf of the financial institutions.
The following table sets forth a summary of cash proceeds received, net of remittances paid, from sales of receivables:
Three months endedNine months ended
September 30,September 30,
2024202320242023
Net cash received (paid) from equipment installment
   receivables program1
$(568)$293 $(1,121)$233 
Net cash received (paid) from revolving receivables program
938 479 1,185 1,479 
Net cash received (paid) from other programs
— (376)— (632)
Total net cash impact to cash flows from operating activities2
$370 $396 $64 $1,080 
1Cash from initial sales of $2,442 and $2,937 for the three months and $7,848 and $8,122 for the nine months ended September 30, 2024 and 2023, respectively.
2Net of facility fees.

The sales of receivables did not have a material impact on our consolidated statements of income or to “Total Assets” reported on our consolidated balance sheets. We reflect cash receipts on sold receivables as cash flows from operations in our consolidated statements of cash flows. In the event cash is received on the beneficial interests, those receipts are classified as cash flows from investing activities, when applicable.
 
Our equipment installment and revolving receivables programs are discussed in detail below. The following table sets forth a summary of the receivables and accounts being serviced:
 September 30, 2024December 31, 2023
 Equipment Equipment 
 InstallmentRevolvingInstallmentRevolving
Gross receivables:$2,940 $195 $3,714 $924 
Balance sheet classification
   Accounts receivable
     Notes receivable1,665 — 1,695 — 
     Trade receivables200 195 548 924 
   Other Assets
     Noncurrent notes and trade receivables1,075 — 1,471 — 
Outstanding portfolio of receivables derecognized from
our consolidated balance sheets
$11,872 $2,770 $12,027 $1,500 
Cash proceeds received, net of remittances1
8,470 2,770 9,361 1,500 
1Represents amounts to which financial institutions remain entitled, excluding the beneficial interests.

Equipment Installment Receivables Program
We offer our customers the option to purchase certain wireless devices in installments over a specified period of time and, in many cases, once certain conditions are met, they may be eligible to trade in the original equipment for a new device and have the remaining unpaid balance paid or settled.
 
We maintain a program under which we transfer a portion of these receivables through our bankruptcy-remote subsidiary in exchange for cash and beneficial interests. In the event a customer trades in a device prior to the end of the installment contract period, we agree to make a payment to the financial institutions equal to any outstanding remaining installment receivable balance. Accordingly, we record a guarantee obligation for this estimated amount at the time the receivables are transferred.
 
The following table sets forth a summary of equipment installment receivables sold under this program:
 Three months endedNine months ended
 September 30,September 30,
 2024202320242023
Gross receivables sold1
$2,469 $2,968 $7,930 $8,215 
Net receivables sold2
2,340 2,842 7,535 7,834 
Cash proceeds received2,442 2,937 7,848 8,122 
Guarantee obligation recorded199 249 682 697 
1Receivables net of promotion credits.
2Receivables net of allowance and other reserves.

Beneficial interests, when applicable, and guarantee obligations are initially recorded at estimated fair value and subsequently adjusted for changes in present value of expected cash flows. The estimation of their fair values is based on remaining installment payments expected to be collected and the expected timing and value of device trade-ins. The estimated value of the device trade-ins considers prices offered to us by independent third parties and contemplates changes in value after the launch of a device model. The fair value measurements used for the beneficial interests and the guarantee obligation are considered Level 3 under the Fair Value Measurement and Disclosure framework (see Note 7).

The following table presents the previously transferred equipment installment receivables, which we repurchased in exchange for the associated beneficial interests:
 Three months endedNine months ended
 September 30,September 30,
 2024202320242023
Fair value of repurchased receivables$951 $732 $2,393 $2,038 
Carrying value of beneficial interests956 740 2,420 2,051 
Gain (loss) on repurchases1
$(5)$(8)$(27)$(13)
1These gains (losses) are included in “Selling, general and administrative” expense in the consolidated statements of income.

At September 30, 2024 and December 31, 2023, our beneficial interests were $2,875 and $2,270, respectively, of which $1,681 and $1,296 are included in “Prepaid and other current assets” on our consolidated balance sheets, with the remainder in “Other Assets.” The guarantee obligation at September 30, 2024 and December 31, 2023 was $236 and $385, respectively, of which $121 and $111 are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets, with the remainder in “Other noncurrent liabilities.” Our maximum exposure to loss as a result of selling these equipment installment receivables is limited to the total amount of our beneficial interests and guarantee obligation.

Revolving Receivables Program
During 2024, we expanded our revolving agreement to transfer up to $2,770 of certain receivables through our bankruptcy-remote subsidiaries to various financial institutions on a recurring basis in exchange for cash equal to the gross receivables transferred. This agreement is subject to renewal on an annual basis and the transfer limit may be expanded or reduced from time to time. As customers pay their balances, we transfer additional receivables into the program, resulting in our gross receivables sold exceeding net cash flow impacts (e.g., collect and reinvest). The transferred receivables are fully guaranteed by our bankruptcy-remote subsidiaries, which hold additional receivables in the amount of $195 that are pledged as collateral under this agreement. The transfers are recorded at fair value of the proceeds received and obligations assumed less derecognized receivables. Our maximum exposure to loss related to these receivables transferred is limited to the derecognized amount outstanding.
The following table sets forth a summary of the revolving receivables sold:
 Three months endedNine months ended
 September 30,September 30,
 2024202320242023
Gross receivables sold/cash proceeds received1
$5,620 $4,053 $14,466 $5,053 
Total collections under revolving agreement
4,650 3,553 13,196 3,553 
Net cash proceeds received
$970 $500 $1,270 $1,500 
Net receivables sold2
$5,463 $3,958 $14,075 $4,940 
1Includes initial sales of receivables of $970 and $500 for the three months and $1,270 and $1,500 for the nine months ended September 30, 2024 and 2023, respectively.
2Receivables net of allowance and other reserves.