v3.25.4
Sales Of Receivables
 12 Months Ended
Dec. 31, 2025
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Sales Of Receivables
NOTE 17. 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 for the years ended December 31:
202520242023
Net cash received (paid) from equipment installment receivables program1
$1,318 $(1,358)$648 
Net cash received (paid) from revolving receivables program16 1,147 1,456 
Net cash received (paid) from other programs— — (632)
Total net cash impact to cash flows from operating activities2
$1,334 $(211)$1,472 
1Cash from initial sales of $12,391, $10,587 and $10,980 for the years ended December 31, 2025, 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 at December 31:
20252024
Equipment InstallmentRevolvingEquipment InstallmentRevolving
Gross receivables:$3,725 $425 $3,504 $553 
Balance sheet classification
Accounts receivable
Notes receivable1,886 — 1,817 — 
Trade receivables304 425 237 553 
Other Assets
Noncurrent notes and trade receivables1,535 — 1,450 — 
Outstanding portfolio of receivables derecognized from
our consolidated balance sheets
$11,987 $2,940 $11,909 $2,770 
Cash proceeds received, net of remittances1
9,617 2,940 8,243 2,770 
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:
202520242023
Gross receivables sold1
$12,513 $10,696 $11,104 
Net receivables sold2
11,991 10,160 10,603 
Cash proceeds received12,391 10,587 10,980 
Guarantee obligation recorded925 930 932 
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 12).

The following table presents the previously transferred equipment installment receivables, which we repurchased in exchange for the associated beneficial interests:
202520242023
Fair value of repurchased receivables$4,786 $3,185 $2,997 
Carrying value of beneficial interests
4,774 3,199 3,013 
Gain (loss) on repurchases1
$12 $(14)$(16)
1These gains (losses) are included in “Selling, general and administrative” expense in the consolidated statements of income.

At December 31, 2025 and December 31, 2024, our beneficial interests were $2,067 and $3,185, respectively, of which $1,338 and $1,906 are included in “Prepaid and other current assets” on our consolidated balance sheets, with the remainder in “Other Assets.” The guarantee obligation at December 31, 2025 and December 31, 2024 was $410 and $301, respectively, of which $216 and $150 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 2025, we expanded our revolving agreement to transfer up to $2,940 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 $425 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:
202520242023
Gross receivables sold/cash proceeds received1
$30,311 $21,632 $8,882 
Total collections under revolving agreement30,141 20,362 7,382 
Net cash proceeds received$170 $1,270 $1,500 
Net receivables sold2
$29,480 $21,039 $8,679 
1Includes initial sales of receivables of $170, $1,270 and $1,500 for the years ended December 31, 2025, 2024 and 2023, respectively.
2Receivables net of allowance and other reserves.