Company: UZF
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0000821130-25-000032
Chunk: 115

Company: ARRAY DIGITAL INFRASTRUCTURE, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 1
Chunk 115
---
 computing the fair value of financial instruments for disclosure purposes as displayed below.Level within the Fair Value HierarchyMarch 31, 2025December 31, 2024Book ValueFair ValueBook ValueFair Value(Dollars in millions)Long-term debt2$2,882 $2,791 $2,890 $2,785 Long-term debt excludes lease obligations, the current portion of Long-term debt and debt financing costs. The fair value of Long-term debt was estimated using various methods, including quoted market prices and discounted cash flow analyses.

The fair values of Cash and cash equivalents, restricted cash and short-term debt approximate their book values due to the short-term nature of these financial instruments. 

Note 4 Equipment Installment PlansUScellular sells devices to customers under equipment installment plans over a specified time period. For certain equipment installment plans, after a specified period of time or amount of payments, the customer may have the right to upgrade to a new device and have the remaining unpaid equipment installment contract balance waived, subject to certain conditions, including trading in the original device in good working condition and signing a new equipment installment contract.The following table summarizes equipment installment plan receivables.March 31, 2025December 31, 2024(Dollars in millions)Equipment installment plan receivables, gross$1,054 $1,110 Allowance for credit losses(78)(82)Equipment installment plan receivables, net$976 $1,028 Net balance presented in the Consolidated Balance Sheet as:Accounts receivable — Customers and agents (Current portion)$567 $592 Other assets and deferred charges (Non-current portion)409 436 Equipment installment plan receivables, net$976 $1,028 

35

UScellular uses various inputs to evaluate the credit profiles of its customers, including internal data, information from credit bureaus and other sources. From this evaluation, a credit class is assigned to the customer that determines the number of eligible lines, the amount of credit available, and the down payment requirement, if any. These credit classes are grouped into four credit categories: lowest risk, lower risk, slight risk and higher risk. A customer's assigned credit class is reviewed periodically and a change is made, if appropriate. An equipment installment plan billed amount is considered past due if not paid within 30 days. The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows: