Device Payment Plan and Wireless Service Receivables (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Schedule of Receivables, Net

The following table presents information about accounts receivable, net of allowances, recorded in our condensed consolidated balance sheet:

	At March 31, 2020
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable(2)	$	12,824	$	5,244	$	6,784	$	24,852
Less: Allowance for credit losses	606		228		221		1,055
Accounts receivable, net of allowance	$	12,218	$	5,016	$	6,563	$	23,797

⁽¹⁾ Other receivables primarily include wireline receivables, Verizon Media receivables and other receivables, the allowances for which are individually insignificant

⁽²⁾ Following the adoption of Topic 326 on January 1, 2020, accounts receivable are measured at amortized cost

The following table displays device payment plan agreement receivables, net, recognized in our condensed consolidated balance sheets:

	At March 31,			At December 31,
(dollars in millions)	2020			2019(1)
Device payment plan agreement receivables, gross	$	18,320		$	19,493
Unamortized imputed interest	(425		)	(454		)
Device payment plan agreement receivables, at amortized cost	17,895			19,039
Allowance (2)	(830		)	(472		)
Device payment plan agreement receivables, net	$	17,065		$	18,567
Classified in our condensed consolidated balance sheets:
Accounts receivable, net	$	12,218		$	13,045
Other assets	4,847			5,522
Device payment plan agreement receivables, net	$	17,065		$	18,567

⁽¹⁾ Balances reflected are prior to the adoption of Topic 326 on January 1, 2020

⁽²⁾ Includes allowance for both short-term and long-term device payment plan agreement receivables. The allowance as of March 31, 2020 and December 31, 2019 relate to our provision for credit losses and doubtful accounts, respectively.

Financing Receivable Credit Quality Indicators [Table Text Block]

The following table presents device payment plan agreement receivables, at amortized cost, as of March 31, 2020, by credit quality indicator and year of origination:

	Year of Origination
(dollars in millions)	2020		2019		2018		Prior to 2018		Total
New customers	$	560	$	1,930	$	348	$	44	$	2,882
Existing customers	2,720		9,858		2,404		31		15,013
Total	$	3,280	$	11,788	$	2,752	$	75	$	17,895

The data presented in the table above was last updated on March 31, 2020.

Activity in Allowance for Credit Losses for Device Payment Plan Agreement Receivables

Activity in the allowance for credit losses by portfolio segment of receivables were as follows:

(dollars in millions)	Device Payment Plan Agreement Receivables(1)			Wireless Service Plan Receivables
Balance at January 1, 2020	$	472		$	156
Opening balance sheet adjustment related to Topic 326 adoption	265			—
Adjusted opening balance, January 1, 2020	737			156
Current period provision for expected credit losses	312			170
Write-offs charged against the allowance	(229		)	(113		)
Recoveries collected	10			15
Balance at March 31, 2020	$	830		$	228

⁽¹⁾ Includes allowance for both short-term and long-term device payment plan agreement receivables

Balance and Aging of Device Payment Plan Agreement Receivables on Gross Basis

The balance and aging of the device payment plan agreement receivables, at amortized cost, were as follows:

	At March 31,
(dollars in millions)	2020
Unbilled	$	16,636
Billed:
Current	965
Past due	294
Device payment plan agreement receivables, at amortized cost	$	17,895