Device Payment Plan Agreement and Wireless Service Receivables (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Device Payment Plan Receivables, Net

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

	At December 31, 2021
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	13,287	$	4,872	$	6,583	$	24,742
Less Allowance for credit losses	504		130		262		896
Accounts receivable, net of allowance	$	12,783	$	4,742	$	6,321	$	23,846

(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 consolidated balance sheets:

	(dollars in millions)
At December 31,	2021		2020
Device payment plan agreement receivables, gross	$	21,303	$	17,959
Unamortized imputed interest	(358)		(453)
Device payment plan agreement receivables, at amortized cost	20,945		17,506
Allowance(1)	(759)		(940)
Device payment plan agreement receivables, net	$	20,186	$	16,566
Classified in our consolidated balance sheets:
Accounts receivable, net	$	12,783	$	11,601
Other assets	7,403		4,965
Device payment plan agreement receivables, net	$	20,186	$	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 December 31, 2021, by credit quality indicator and year of origination:

	Year of Origination
(dollars in millions)	2021		2020		Prior to 2020 (1)		Total
New customers	$	2,545	$	589	$	10	$	3,144
Existing customers	13,983		3,736		82		17,801
Total	$	16,528	$	4,325	$	92	$	20,945

(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	434		185
Write-offs charged against the allowance	(653)		(383)
Recoveries collected	38		66
Balance at December 31, 2021	$	759	$	130

(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:

(dollars in millions)	At December 31, 2021
Unbilled	$	19,777
Billed:
Current	963
Past due	205
Device payment plan agreement receivables, at amortized cost	$	20,945