v3.25.1
Debt
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Debt
Note 8 – Debt

The following table sets forth the debt balances and activity as of, and for the three months ended, March 31, 2025:
(in millions)December 31,
2024
Proceeds from Issuances and Borrowings (1)
Repayments
Reclassifications (1)
Other (2)
March 31,
2025
Short-term debt$4,068 $— $(479)$4,628 $(3)$8,214 
Long-term debt72,700 7,768 — (4,628)193 76,033 
Total debt to third parties76,768 7,768 (479)— 190 84,247 
Long-term debt to affiliates1,497 — — — — 1,497 
Total debt$78,265 $7,768 $(479)$— $190 $85,744 
(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 4.1% on weighted-average debt outstanding of $80.8 billion and $77.4 billion for the three months ended March 31, 2025 and 2024, 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 three months ended March 31, 2025, we issued and borrowed the following debt:
(in millions)Principal Issuances
Discounts and Issuance Costs,
Net (1)
Net Proceeds from Issuance of Long-Term DebtIssue Date
3.150% Senior Notes due 2032 (EUR-denominated)
$1,036 $(5)$1,031 February 11, 2025
3.500% Senior Notes due 2037 (EUR-denominated)
1,036 (8)1,028 February 11, 2025
3.800% Senior Notes due 2045 (EUR-denominated)
777 (7)770 February 11, 2025
5.125% Senior Notes due 2032
1,250 (7)1,243 March 27, 2025
5.300% Senior Notes due 2035
1,000 (7)993 March 27, 2025
5.875% Senior Notes due 2055
1,250 (15)1,235 March 27, 2025
Total of Senior Notes issued6,349 (49)6,300 
4.740% Class A Senior ABS Notes due 2029
500 (2)498 February 27, 2025
Total of ABS Notes issued500 (2)498 
4.927% ECA Facility due 2036
1,000 (30)970 March 17, 2025
Total of credit facility borrowed1,000 (30)970 
Total Issuances and Borrowings$7,849 $(81)$7,768 
(1)Includes accrued or paid issuance costs and discounts.
Repayments

During the three months ended March 31, 2025, we made the following repayments:
(in millions)Principal AmountPayment Date
4.738% Secured Series 2018-1 A-1 Notes due 2025
$131 January 13, 2025
5.152% Series 2018-1 A-2 Notes due 2028
92 Various
4.910% Class A Senior ABS Notes due 2025
213 Various
ECA Facility due 203643 March 17, 2025
Total Repayments$479 

Subsequent to March 31, 2025, on April 15, 2025, we repaid at maturity $3.0 billion of our 3.500% Senior Notes due 2025.

Asset-backed Notes

On February 27, 2025, we issued $500 million of 4.740% Class A Senior ABS Notes to third parties in a private placement transaction. Net proceeds of $498 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 three months ended March 31, 2025.

As of March 31, 2025, $1.9 billion of our ABS Notes were secured in total by $2.5 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 March 31, 2025, were as follows:
(in millions)Expected Maturities
2025$357 
2026594 
2027822 
202884 
Total$1,857 

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)March 31,
2025		December 31,
2024
Assets
Equipment installment plan receivables, net$1,714 $1,472 
Equipment installment plan receivables due after one year, net526 352 
Other current assets247 151 
Liabilities
Accounts payable and accrued liabilities$4 $2 
Short-term debt427 570 
Long-term debt1,425 996 

See Note 4 – Receivables and Related Allowance for Credit Losses for additional information on the EIP receivables used to secure the ABS Notes.
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 15 – Additional Financial Information for our reconciliation of Cash and cash equivalents, including restricted cash.

ECA Facility

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). On March 17, 2025, we drew down the full $1.0 billion available under the ECA Facility and recognized the net proceeds within Proceeds from issuance of long-term debt on our Condensed Consolidated Statements of Cash Flows. Borrowings under the ECA facility are amortized semi-annually in equal installments up to the maturity date of March 15, 2036. Interest is based on the Secured Overnight Financing Rate for the interest period plus an applicable margin.