Credit Losses on Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Financing receivable, allowance for credit loss

The following table presents the activity of our allowance for credit losses by accounts receivable portfolio for the years ended December 31, 2022 and December 31, 2021:


	Business		Mass Markets	Total
	(Dollars in millions)
Balance at January 1, 2021(1)	$	109	82	191
Provision for expected losses	50		55	105
Write-offs charged against the allowance	(76)		(101)	(177)
Recoveries collected	13		6	19
Classified as assets held for sale(2)	(8)		(16)	(24)
Balance at December 31, 2021	$	88	26	114
Provision for expected losses	25		108	133
Write-offs charged against the allowance	(61)		(114)	(175)
Recoveries collected	10		6	16

Change in allowance in assets held for sale(3)	(5)		2	(3)
Balance at December 31, 2022	$	57	28	85

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(1)We completed an internal reorganization in January 2021. As a result of this change, the 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 classified as held for sale related to the divestitures of our Latin American and ILEC businesses on August 1, 2022 and October 3, 2022, respectively. See Note 2—Divestitures of the Latin American and ILEC Businesses and Planned Divestiture of the EMEA Business.

(3)Represents changes in amounts classified as held for sale related to the divestitures of our Latin American and ILEC businesses on August 1, 2022 and October 3, 2022, respectively, and the inclusion of a $5 million allowance for credit losses classified as held for sale as of December 31, 2022 related to the planned divestiture of the EMEA business. See Note 2—Divestitures of the Latin American and ILEC Businesses and Planned Divestiture of the EMEA Business.