Supplier and Vendor Financing Programs

12 Months Ended

Dec. 31, 2024

Payables and Accruals [Abstract]

Supplier Finance Program [Text Block]

NOTE 22. SUPPLIER AND VENDOR FINANCING PROGRAMS

Supplier Financing Program

We actively manage the timing of our supplier payments for operating items to optimize the use of our cash and seek to make payments on 90-day or greater terms, while providing suppliers with access to bank facilities that permit earlier payment at their cost. Our supplier financing program does not result in changes to our normal, contracted payment cycles or cash from operations.

At the supplier’s election, they can receive payment of AT&T obligations prior to the scheduled due dates, at a discounted price from the third-party financial institution. The discounted price paid to participating suppliers is based on a variable rate that is indexed to the overnight borrowing rate. We agree to pay the financial institution the stated amount generally within 90 days of receipt of the invoice. We do not have pledged assets or other guarantees under our supplier financing program.

Our outstanding payment obligations are included in “Accounts payable and accrued liabilities” on our consolidated balance sheets and are reported as operating or investing (when capitalizable) activities in our statements of cash flows when paid.

The following table presents the change in the supplier financing obligation for the years ended December 31:

	2024		2023
Confirmed obligations outstanding at the beginning of year	$	2,844	$	2,869
Invoices received	15,510		12,496
Invoices paid	(15,856)		(12,521)
Confirmed obligations outstanding at the end of year	$	2,498	$	2,844

Direct Supplier Financing

We also have arrangements with suppliers of handset inventory that allow us to extend the stated payment terms by up to 90 days at an additional cost to us (variable rate extension fee). Direct supplier financing outstanding is included in “Accounts payable and accrued liabilities” on our consolidated balance sheets and is reported as operating activities in our statements of cash flows when paid.

The following table presents the change in the direct supplier financing obligation for the years ended December 31:

	2024		2023
Obligations outstanding at the beginning of year	$	5,442	$	5,486
Invoices extended	15,831		17,376
Invoices paid	(15,001)		(17,420)
Obligations outstanding at the end of year	$	6,272	$	5,442

Vendor Financing

In connection with capital improvements and the acquisition of other productive assets, we negotiate favorable payment terms of 120 days or more (referred to as vendor financing), which are reported as financing activities in our statements of cash flows when paid.

The following table presents the change in the vendor financing obligation for the years ended December 31:

	2024		2023
Obligations outstanding at the beginning of year	$	2,516	$	5,607
Commitments	700		2,651
Payments	(1,792)		(5,742)
Obligations outstanding at the end of year1,2	$	1,424	$	2,516
1Total vendor financing payables at December 31, 2024 and 2023 were $1,448 and $2,833, respectively, of which $749 and $1,975 are included in “Accounts payable and accrued liabilities.”
2Includes software licensing arrangements with payment terms of two to five years totaling approximately $850 and $630 at December 31, 2024 and 2023, respectively.