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Equipment Installment Plans (Tables)
12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Equipment installment plan receivables
The following table summarizes equipment installment plan receivables as of December 31, 2019 and 2018.
December 31,
2019
 
2018
(Dollars in millions)
 
 
 
Equipment installment plan receivables, gross
$
1,008

 
$
974

Allowance for credit losses
(84
)
 
(77
)
Equipment installment plan receivables, net
$
924

 
$
897

 
 
 
 
Net balance presented in the Consolidated Balance Sheet as:
 
 
 
Accounts receivable — Customers and agents (Current portion)
$
587

 
$
560

Other assets and deferred charges (Non-current portion)
337

 
337

Equipment installment plan receivables, net
$
924

 
$
897


Equipment installment plan receivables credit categories The balance and aging of the equipment installment plan receivables on a gross basis by current credit category were as follows:
 
December 31, 2019
 
December 31, 2018
 
Lower Risk
 
Higher Risk
 
Total
 
Lower Risk
 
Higher Risk
 
Total
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
Unbilled
$
931

 
$
11

 
$
942

 
$
904

 
$
17

 
$
921

Billed — current
44

 
1

 
45

 
35

 
1

 
36

Billed — past due
20

 
1

 
21

 
15

 
2

 
17

Equipment installment plan receivables, gross
$
995

 
$
13

 
$
1,008

 
$
954

 
$
20

 
$
974


Equipment installment plans allowance for credit losses The activity in the allowance for credit losses for equipment installment plan receivables was as follows:
 
2019
 
2018
(Dollars in millions)
 
 
 
Allowance for credit losses, beginning of year
$
77

 
$
65

Bad debts expense
82

 
71

Write-offs, net of recoveries
(75
)
 
(59
)
Allowance for credit losses, end of year
$
84

 
$
77