Accounts Receivable

12 Months Ended

Dec. 31, 2022

Accounts Receivable [Abstract]

Accounts Receivable

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(6) Accounts Receivable:

The components of accounts receivable, net at December 31, 2022 and 2021 are as follows:

($ in millions)	December 31, 2022		December 31, 2021
Retail and Wholesale	$	416	$	441
Other		69		74
Less: Allowance for doubtful accounts		(47)		(57)
Accounts receivable, net	$	438	$	458

An analysis of the activity in the allowance for credit losses is as follows:

	Successor				Predecessor
	For the year ended		For the eight months		For the four months		For the year ended
($ in millions)	December 31,		ended December 31,		ended April 30,		December 31,
	2022		2021		2021		2020
Balance at beginning of the Period:	$	57	$	-	$	130	$	120
Increases: Provision for bad debt charged to expense		26		14		-		-
Increases: Provision for bad debt charged to revenue		30		38		37		106
Write-offs charged against allowance, net of recoveries		(66)		5		(167)		(96)
Balance at end of Period:	$	47	$	57	$	-	$	130

As of April 30, 2021, the fair value of our net accounts receivable balances approximated their carrying values; therefore, no fair value adjustment for fresh start accounting was required. Our allowance for doubtful accounts decreased during the eight months ended December 31, 2021, primarily as a result of resolutions of carrier disputes.

We maintain an allowance for credit losses based on the estimated ability to collect accounts receivable. The allowance for credit losses is increased by recording an expense for the provision for bad debts for retail customers, and through decreases to revenue at the time of billing for wholesale customers. The allowance is decreased when customer accounts are written off, or when customers are given credits.

The provision for bad debts was $26 million for the year ended December 31, 2022, $14 million for the four months ended April 30, 2021, $14 million for the eight months ended December 31, 2021 and $106 million for the year ended December 31, 2020.

In accordance with ASC 326, we performed calculations to estimate expected credit losses, utilizing rates that are consistent with our write offs (net of recoveries) because such events affect the entity’s loss given default experience.