Credit Losses on Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Credit Loss [Abstract]

Financing Receivable, Allowance for Credit Loss

The following table presents the activity of our allowance for credit losses by accounts receivable portfolio for the nine months ended September 30, 2021:

	Business		Mass Markets	Total
	(Dollars in millions)
Beginning balance at January 1, 2021(1)	$	109	82	191
Provision for expected losses	36		44	80
Write-offs charged against the allowance	(58)		(94)	(152)
Recoveries collected	11		11	22
Reclassified as held for sale(2)	(8)		(16)	(24)
Ending balance at September 30, 2021	$	90	27	117

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(1)As described in Note 14—Segment Information, we completed an internal reorganization in January 2021. As a result of this change, allowance for credit losses previously included in the Consumer and Business portfolio of $70 million related to consumer and $12 million related to our small business group, respectively, were reclassified to the Mass Markets allowance for credit losses on January 1, 2021.

(2)Represents the amounts reclassified as held for sale related to our pending divestitures. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses.