v3.25.3
Debt
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
Debt
Note 9 – Debt

The following table sets forth the debt balances and activity as of, and for the nine months ended, September 30, 2025:
(in millions)December 31,
2024
Proceeds from Issuances and Borrowings (1)
Note Redemptions (1)
Repayments
Reclassifications (1)
Other (2)
September 30,
2025
Short-term debt$4,068 $— $(3,000)$(1,064)$6,348 $(19)$6,333 
Long-term debt72,700 8,266 (499)— (6,348)2,246 76,365 
Total debt to third parties76,768 8,266 (3,499)(1,064)— 2,227 82,698 
Long-term debt to affiliates1,497 — — — — 1 1,498 
Total debt$78,265 $8,266 $(3,499)$(1,064)$— $2,228 $84,196 
(1)Issuances and borrowings, note redemptions 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, the impact from changes in foreign currency exchange rates and $1.7 billion of notes issued in settlement of the Exchange Offers. See Note 2 – Business Combinations for further information regarding the Exchange Offers.

Our effective interest rate, excluding the impact of derivatives and capitalized interest, was 4.2% and 4.0% on weighted-average debt outstanding of $83.2 billion and $78.1 billion for the three months ended September 30, 2025 and 2024, respectively, and 4.1% on weighted-average debt outstanding of $82.1 billion and $78.1 billion for the nine months ended September 30, 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 nine months ended September 30, 2025, we issued and borrowed the following debt:
(in millions)Principal Issuances
Discounts/Premiums and Issuance Costs, Net
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
6.700% Senior Notes due 2033 (1)
489 56 — August 5, 2025
6.250% Senior Notes due 2069 (1)
393 3 — August 5, 2025
5.500% Senior Notes due March 2070 (1)
401 (42)— August 5, 2025
5.500% Senior Notes due June 2070 (1)
395 (42)— August 5, 2025
Total of Senior Notes issued8,027 (74)6,300 
4.740% Class A Senior ABS Notes due 2029
500 (2)498 February 27, 2025
4.340% Class A Senior ABS Notes due 2030
500 (2)498 August 6, 2025
Total of ABS Notes issued1,000 (4)996 
4.927% ECA Facility due March 2036
1,000 (30)970 March 17, 2025
Total of credit facility borrowed1,000 (30)970 
Total Issuances and Borrowings$10,027 $(108)$8,266 
(1)In connection with the closing of the UScellular Acquisition, we became obligated to execute the Exchange Offers of certain senior notes of UScellular pursuant to which T-Mobile notes with an aggregate outstanding principal balance of $1.7 billion were issued with the same interest rate, interest payment dates, maturity dates and redemption terms as each corresponding series of senior notes of UScellular. See Note 2 – Business Combinations for further information regarding the UScellular Acquisition.

Subsequent to September 30, 2025, on October 9, 2025, we issued $800 million of 4.625% Senior Notes due 2033, $1.0 billion of 4.950% Senior Notes due 2035 and $1.0 billion of 5.700% Senior Notes due 2056.

Note Redemptions and Repayments

During the nine months ended September 30, 2025, we made the following redemptions and repayments:
(in millions)Principal Amount
Write-off of Issuance Cost and Consent Fees (1)
Redemption or Repayment DateRedemption Price
3.500% Senior Notes due 2025
$3,000 $— April 15, 2025N/A
5.375% Senior Notes due 2027
500 1 September 1, 2025100 %
Total Redemptions$3,500 $1 
4.738% Secured Series 2018-1 A-1 Notes due 2025
$131 $— January 13, 2025N/A
ECA Facility due March 203687 — VariousN/A
5.152% Series 2018-1 A-2 Notes due 2028
276 — VariousN/A
4.910% Class A Senior ABS Notes due 2025
570 — VariousN/A
Total Repayments$1,064 $— 
(1)Write-off of issuance costs and consent fees are included in Other (expense) income, net on our Condensed Consolidated Statements of Comprehensive Income. Write-off of issuance costs and consent fees are included in Other, net within Net cash provided by operating activities on our Condensed Consolidated Statements of Cash Flows.

Subsequent to September 30, 2025, on October 2, 2025, we delivered notice of redemption on $1.5 billion aggregate principal amount of our 7.625% Senior Notes due 2026. We will redeem the notes at par on November 1, 2025.
Asset-backed Notes

On February 27, 2025, we issued $500 million of 4.740% Class A Senior ABS Notes, and on August 6, 2025, we issued $500 million of 4.340% Class A Senior ABS Notes, each to third parties in a private placement transaction. Net proceeds from these ABS Notes are presented in Proceeds from issuance of long-term debt, net on our Condensed Consolidated Statements of Cash Flows for the three and nine months ended September 30, 2025.

As of September 30, 2025, $2.0 billion of our ABS Notes were secured in total by $2.6 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, 2025, were as follows:
(in millions)Expected Maturities
2026$594 
20271,050 
2028356 
Total$2,000 

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 on our condensed consolidated financial statements.

The following table summarizes the carrying amounts and classification of assets and liabilities included on our Condensed Consolidated Balance Sheets with respect to the ABS Entities:
(in millions)September 30,
2025		December 31,
2024
Assets
Equipment installment plan receivables, net$1,810 $1,472 
Equipment installment plan receivables due after one year, net595 352 
Other current assets227 151 
Liabilities
Accounts payable and accrued liabilities$3 $2 
Short-term debt364 570 
Long-term debt1,629 996 

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 17 – Additional Financial Information for our reconciliation of Cash and cash equivalents, including restricted cash.

ECA Facilities

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 (an “ECA Facility”), providing for a loan of up to $1.0 billion to finance network equipment-related purchases (the “ECA Facility due March 2036”). The obligations under this 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 due March 2036 and recognized the net proceeds within Proceeds from issuance of long-term debt, net on our Condensed Consolidated Statements of Cash Flows. Borrowings
under this 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.

On August 29, 2025, our wholly owned subsidiary, T-Mobile USA, Inc., entered into an ECA Facility, providing for a loan of up to $1.0 billion to finance network equipment-related purchases (the “ECA Facility due November 2036”). The obligations under this ECA Facility are also guaranteed by us and by all of our wholly owned domestic restricted subsidiaries (subject to customary exceptions). Any amounts drawn under this ECA Facility through the availability period, which terminates December 31, 2025, will mature on November 30, 2036. As of September 30, 2025, the ECA Facility due November 2036 is undrawn.