Company: UZF
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000821130-25-000051
Chunk: 166

Company: ARRAY DIGITAL INFRASTRUCTURE, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 166
---
 three levels for inputs used in fair value measurements. Level 1 inputs include quoted market prices for identical assets or liabilities in active markets. Level 2 inputs include quoted market prices for similar assets and liabilities in active markets or quoted market prices for identical assets and liabilities in inactive markets. Level 3 inputs are unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. A financial instrument’s level within the fair value hierarchy is not representative of its expected performance or its overall risk profile and, therefore Level 3 assets are not necessarily higher risk than Level 2 assets or Level 1 assets.Array has applied the provisions of fair value accounting for purposes of computing the fair value of financial instruments for disclosure purposes as displayed below.Level within the Fair Value HierarchyJune 30, 2025December 31, 2024Book ValueFair ValueBook ValueFair Value(Dollars in millions)Long-term debt2$2,873 $2,702 $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 and restricted cash approximate their book values due to the short-term nature of these financial instruments. 

Note 4 Equipment Installment PlansArray 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.June 30, 2025December 31, 2024(Dollars in millions)Equipment installment plan receivables, gross$1,032 $1,110 Allowance for credit losses(75)(82)Equipment installment plan receivables, net$957 $1,028 Net balance presented in the Consolidated Balance Sheet as:Accounts receivable — Customers and agents (Current portion)$551 $592 Other assets and deferred charges (Non-current portion)406 436 Equipment installment plan receivables, net$957 $1,028 

41

Array uses various