Credit Losses on Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

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, 2022:

	Business		Mass Markets	Total
	(Dollars in millions)
As of December 31, 2021(1)	$	88	26	114
Provision for expected losses	19		80	99
Write-offs charged against the allowance	(47)		(88)	(135)
Recoveries collected	9		5	14
Foreign currency exchange rate change adjustment	1		—	1
Change in allowance in assets held for sale	(1)		3	2
Ending balance at September 30, 2022(2)	$	69	26	95

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(1)As of December 31, 2021, these amounts excluded a $24 million allowance for credit losses classified as held for sale related to the August 1, 2022 divestiture of the Latin American business and the divestiture of the ILEC business. See Note 2—Recently Completed Divestitures of the Latin American and ILEC Businesses.

(2)As of September 30, 2022, these amounts excluded a $19 million allowance for credit losses classified as held for sale related to the divestiture of the ILEC business. See Note 2—Recently Completed Divestitures of the Latin American and ILEC Businesses.