Device Payment Plan and Wireless Service Receivables (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30, 2021
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	12,370	$	5,055	$	5,740	$	23,165
Less Allowance for credit losses	573		140		257		970
Accounts receivable, net of allowance	$	11,797	$	4,915	$	5,483	$	22,195

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

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

	At September 30,		At December 31,
(dollars in millions)	2021		2020
Device payment plan agreement receivables, gross	$	18,991	$	17,959
Unamortized imputed interest	(365)		(453)
Device payment plan agreement receivables, at amortized cost	18,626		17,506
Allowance (1)	(838)		(940)
Device payment plan agreement receivables, net	$	17,788	$	16,566
Classified in our condensed consolidated balance sheets:
Accounts receivable, net	$	11,797	$	11,601
Other assets	5,991		4,965
Device payment plan agreement receivables, net	$	17,788	$	16,566

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

Financing Receivable Credit Quality Indicators

The following table presents device payment plan agreement receivables, at amortized cost, as of September 30, 2021, by credit quality indicator and year of origination:

	Year of Origination
(dollars in millions)	2021		2020		Prior to 2020(1)		Total
New customers	$	1,846	$	869	$	75	$	2,790
Existing customers	9,980		5,388		468		15,836
Total	$	11,826	$	6,257	$	543	$	18,626

(1) Includes accounts that have been suspended at a point in time.

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, 2021	$	940	$	262
Current period provision for expected credit losses	349		126
Write-offs charged against the allowance	(482)		(296)
Recoveries collected	31		48
Balance at September 30, 2021	$	838	$	140

(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 September 30,
(dollars in millions)	2021
Unbilled	$	17,473
Billed:
Current	973
Past due	180
Device payment plan agreement receivables, at amortized cost	$	18,626