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Debt
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Debt
Note 9 – Debt

Debt was as follows:
(in millions)December 31,
2024		December 31,
2023
7.125% Senior Notes due 2024
$— $2,500 
3.500% Senior Notes due 2025
3,000 3,000 
4.738% Series 2018-1 A-1 Notes due 2025
131 656 
7.625% Senior Notes due 2025
— 1,500 
1.500% Senior Notes due 2026
1,000 1,000 
2.250% Senior Notes due 2026
1,800 1,800 
2.625% Senior Notes due 2026
1,200 1,200 
7.625% Senior Notes due 2026
1,500 1,500 
3.750% Senior Notes due 2027
4,000 4,000 
5.375% Senior Notes due 2027
500 500 
2.050% Senior Notes due 2028
1,750 1,750 
4.750% Senior Notes due 2028
1,500 1,500 
4.750% Senior Notes to affiliates due 2028
1,500 1,500 
4.800% Senior Notes due 2028
900 900 
4.910% Class A Senior ABS Notes due 2028
570 750 
4.950% Senior Notes due 2028
1,000 1,000 
5.152% Series 2018-1 A-2 Notes due 2028
1,194 1,562 
6.875% Senior Notes due 2028
2,475 2,475 
2.400% Senior Notes due 2029
500 500 
2.625% Senior Notes due 2029
1,000 1,000 
3.375% Senior Notes due 2029
2,350 2,350 
3.550% Senior Notes due 2029 (EUR-denominated)
621 — 
4.200% Senior Notes due 2029
700 — 
4.250% Class A Senior ABS Notes due 2029
500 — 
4.850% Senior Notes due 2029
1,000 — 
5.050% Class A Senior ABS Notes due 2029
500 — 
3.875% Senior Notes due 2030
7,000 7,000 
2.250% Senior Notes due 2031
1,000 1,000 
2.550% Senior Notes due 2031
2,500 2,500 
2.875% Senior Notes due 2031
1,000 1,000 
3.500% Senior Notes due 2031
2,450 2,450 
2.700% Senior Notes due 2032
1,000 1,000 
3.700% Senior Notes due 2032 (EUR-denominated)
777 — 
8.750% Senior Notes due 2032
2,000 2,000 
5.050% Senior Notes due 2033
2,600 2,600 
5.200% Senior Notes due 2033
1,250 1,250 
5.150% Senior Notes due 2034
1,250 — 
5.750% Senior Notes due 2034
1,000 1,000 
4.700% Senior Notes due 2035
900 — 
3.850% Senior Notes due 2036 (EUR-denominated)
673 — 
4.375% Senior Notes due 2040
2,000 2,000 
3.000% Senior Notes due 2041
2,500 2,500 
4.500% Senior Notes due 2050
3,000 3,000 
3.300% Senior Notes due 2051
3,000 3,000 
3.400% Senior Notes due 2052
2,800 2,800 
5.650% Senior Notes due 2053
1,750 1,750 
5.750% Senior Notes due 2054
1,250 1,250 
6.000% Senior Notes due 2054
1,000 1,000 
5.250% Senior Notes due 2055
900 — 
5.500% Senior Notes due 2055
750 — 
3.600% Senior Notes due 2060
1,700 1,700 
5.800% Senior Notes due 2062
750 750 
Unamortized premium on debt to third parties775 1,011 
Unamortized discount on debt to third parties(223)(223)
Debt issuance costs and consent fees(278)(263)
Total debt78,265 75,018 
Less: Current portion of Senior Notes4,068 3,619 
Total long-term debt$74,197 $71,399 
Long-term debt was classified as follows:
(in millions)December 31,
2024		December 31,
2023
Long-term debt$72,700 $69,903 
Long-term debt to affiliates1,497 1,496 
Total long-term debt$74,197 $71,399 

Our effective interest rate, excluding the impact of derivatives and capitalized interest, was approximately 4.1% and 4.0% on weighted-average debt outstanding of $78.3 billion and $75.4 billion for the years ended December 31, 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.

Senior Notes

The Senior Notes are guaranteed on a senior unsecured basis by the Company and certain of our consolidated subsidiaries. They are redeemable at our discretion, in whole or in part, at any time. The redemption price is calculated by reference to the date on which such notes are redeemed and generally includes a premium that steps down gradually as the Senior Notes approach their par call date, on or after which they are redeemable at par. The amount of time by which the par call date precedes the maturity date of the respective series of Senior Notes varies from one month to three years.

Issuances and Borrowings

During the year ended December 31, 2024, we issued the following Senior Notes and ABS Notes:
(in millions)Principal IssuancesDiscounts and Issuance CostsNet 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
4.250% Class A Senior ABS Notes due 2029
500 (2)498 October 9, 2024
Total of ABS Notes issued$1,000 $(5)$995 

Credit Facilities

We maintain a revolving credit facility (the “Revolving Credit Facility”) with an aggregate commitment amount of $7.5 billion, including a letter of credit sub-facility of up to $1.5 billion and a swingline loan sub-facility of up to $500 million. As of December 31, 2024 and 2023, we did not have an outstanding balance under the Revolving Credit Facility.
Note Redemptions and Repayments

During the year ended December 31, 2024, we made the following note redemptions and repayments:
(in millions)Principal AmountPayment Date
7.125% Senior Notes due 2024
$2,500 June 15, 2024
7.625% Senior Notes due 2025
1,500 November 15, 2024
Total Redemptions$4,000 
4.738% Secured Series 2018-1 A-1 Notes due 2025
$525 Various
5.152% Series 2018-1 A-2 Notes due 2028
368 Various
4.910% Class A Senior ABS Notes due 2028
180 Various
Total Repayments$1,073 

Asset-backed Notes

In connection with issuing the ABS Notes, 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. The ABS BRE’s residual interest in the ABS Trust represents the rights to all funds not needed to make required payments on the ABS Notes and other related payments and expenses.

Under the terms of the ABS Notes, our wholly owned subsidiary, T-Mobile Financial LLC (“FinCo”), and certain of our other wholly owned subsidiaries (collectively, the “Originators”) transfer EIP receivables to the ABS BRE, which in turn transfers such receivables to the ABS Trust, which issued the ABS Notes. The Class A senior ABS Notes have an expected weighted average life of approximately 2.5 years. Under the terms of the transaction, there is a two-year revolving period during which we may transfer additional receivables to the ABS Entities as collections on the receivables are received. The EIP receivables transferred to the ABS Entities and related assets, consisting primarily of restricted cash, will only be available for payment of the ABS Notes and expenses related thereto, payments to the Originators in respect of additional transfers of device payment plan agreement receivables, and other obligations arising from our ABS Notes transactions, and will not be available to pay our other obligations until the associated ABS Notes and related obligations are satisfied. The third-party investors in the Class A senior ABS Notes have legal recourse only to the assets of the ABS Trust securing the ABS Notes and do not have any recourse to T-Mobile with respect to the payment of principal and interest. The receivables transferred to the ABS Trust will only be available for payment of the ABS Notes and other obligations arising from the transaction and will not be available to pay any obligations or claims of T-Mobile’s creditors.

Under a parent support agreement, T-Mobile has agreed to guarantee the performance of the obligations of FinCo, which will continue to service the receivables, and the other T-Mobile entities participating in the transaction. However, T-Mobile does not guarantee any principal or interest on the ABS Notes or any payments on the underlying EIP receivables.

Cash collections on the EIP receivables are required at certain specified times to be placed into segregated accounts. Deposits to the segregated accounts are considered restricted cash and are included in Other current assets on our Consolidated Balance Sheets.

As of December 31, 2024, $1.6 billion of our ABS Notes were secured in total by $2.0 billion of gross EIP receivables and future collections on such receivables. Our ABS Notes and the assets securing this debt are included on our Consolidated Balance Sheets.

The expected maturities of our ABS Notes as of December 31, 2024, were as follows:
(in millions)Expected Maturities
2025$570 
2026594 
2027406 
Total$1,570 
Variable Interest Entities

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. Those activities include selecting which receivables are transferred into the ABS Entities, servicing such receivables, and funding of the ABS Entities. Additionally, our equity interest and residual interest in the ABS BRE and the ABS Trust, respectively, obligate us to absorb losses and give us the right to receive benefits from the ABS Entities that could potentially be significant to the ABS Entities. Accordingly, we include the balances and results of operations of the ABS Entities in our consolidated financial statements.

The following table summarizes the carrying amounts and classification of assets and liabilities included in our Consolidated Balance Sheets with respect to the ABS Entities:
(in millions)December 31,
2024		December 31,
2023
Assets
Equipment installment plan receivables, net$1,472 $739 
Equipment installment plan receivables due after one year, net352 168 
Other current assets151 101 
Liabilities
Accounts payable and accrued liabilities2 1 
Short-term debt570 198 
Long-term debt996 550 

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

Spectrum Financing

On April 1, 2020, in connection with the closing of the Merger, we assumed Sprint’s spectrum-backed notes, which are collateralized by the acquired, directly held and third-party leased Spectrum licenses (collectively, the “Spectrum Portfolio”) transferred to wholly owned bankruptcy-remote special purpose entities (collectively, the “Spectrum Financing SPEs”). As of December 31, 2024 and 2023, the total outstanding obligations under these Notes were $1.3 billion and $2.2 billion, respectively.

In October 2016, certain subsidiaries of Sprint Communications, Inc. transferred the Spectrum Portfolio to the Spectrum Financing SPEs, which was used as collateral to raise an initial $3.5 billion in senior secured notes (the “2016 Spectrum-Backed Notes”) bearing interest at 3.360% per annum under a $7.0 billion securitization program. The 2016 Spectrum-Backed Notes were repayable over a five-year term, with interest-only payments over the first four quarters and amortizing quarterly principal payments thereafter commencing December 2017 through September 2021. We fully repaid the 2016 Spectrum-Backed Notes in 2021.

In March 2018, Sprint issued approximately $3.9 billion in aggregate principal amount of senior secured notes (the “2018 Spectrum-Backed Notes” and together with the 2016 Spectrum-Backed Notes, the “Spectrum-Backed Notes”) under the existing $7.0 billion securitization program, consisting of two series of senior secured notes. The first series of notes totaled $2.1 billion in aggregate principal amount, bears interest at 4.738% per annum, and has quarterly interest-only payments until June 2021, with additional quarterly principal payments commencing in June 2021 through March 2025. As of December 31, 2024, $131 million of the aggregate principal amount was classified as Short-term debt on our Consolidated Balance Sheets. The second series of notes totaled approximately $1.8 billion in aggregate principal amount, bears interest at 5.152% per annum, and has quarterly interest-only payments until June 2023, with additional quarterly principal payments commencing in June 2023 through March 2028. As of December 31, 2024, $368 million of the aggregate principal amount was classified as Short-term debt on our Consolidated Balance Sheets. The Spectrum Portfolio, which also serves as collateral for the Spectrum-Backed Notes, remains substantially identical to the original portfolio from October 2016.

Simultaneously with the October 2016 offering, Sprint Communications, Inc. entered into a long-term lease with the Spectrum Financing SPEs for the ongoing use of the Spectrum Portfolio. Sprint Communications, Inc. is required to make monthly lease payments to the Spectrum Financing SPEs in an aggregate amount that is market-based relative to the spectrum usage rights as of the closing date and equal to $165 million per month. The lease payments, which are guaranteed by T-Mobile subsidiaries subsequent to the Merger, are sufficient to service all outstanding series of the 2016 Spectrum-Backed Notes and the lease also
constitutes collateral for the senior secured notes. Because the Spectrum Financing SPEs are wholly owned T-Mobile subsidiaries subsequent to the Merger, these entities are consolidated and all intercompany activity has been eliminated.

Each Spectrum Financing SPE is a separate legal entity with its own separate creditors who will be entitled, prior to and upon the liquidation of the respective Spectrum Financing SPE, to be satisfied out of the Spectrum Financing SPE’s assets prior to any assets of such Spectrum Financing SPE becoming available to T-Mobile. Accordingly, the assets of each Spectrum Financing SPE are not available to satisfy the debts and other obligations owed to other creditors of T-Mobile until the obligations of such Spectrum Financing SPE under the Spectrum-Backed Notes are paid in full. Certain provisions of the Spectrum Financing facility require us to maintain specified cash collateral balances. Amounts associated with these balances are considered to be restricted cash.

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.

Commercial Paper

On July 25, 2023, we established an unsecured short-term commercial paper program with the ability to borrow up to $2.0 billion from time to time. This program supplements our other available external financing arrangements, and proceeds are expected to be used for general corporate purposes. As of December 31, 2024 and 2023, there was no outstanding balance under this program.

Standby Letters of Credit

For the purposes of securing our obligations to provide device insurance services and for the purposes of securing our general purpose obligations, we maintain an agreement for standby letters of credit with certain financial institutions. Our outstanding standby letters of credit were $152 million and $238 million as of December 31, 2024 and 2023, respectively.

ECA Facility

Subsequent to December 31, 2024, on January 31, 2025, our wholly owned subsidiary, T-Mobile USA, Inc., entered into a credit agreement with certain financial institutions, backed by an Export Credit Agency (the “ECA Facility”), providing for a loan of up to $1.0 billion to finance network equipment-related purchases. The obligations under the ECA Facility are also guaranteed by us and by all of our wholly owned domestic restricted subsidiaries (subject to customary exceptions). Any borrowing under the ECA Facility will mature on March 15, 2036. As of January 31, 2025, the ECA Facility is undrawn.