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Device Payment Plan and Wireless Service Receivables (Tables)

3 Months Ended

Mar. 31, 2023

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


	At March 31, 2023
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	13,065	$	4,989	$	5,694	$	23,748
Less Allowance for credit losses	478		179		235		892
Accounts receivable, net of allowance	$	12,587	$	4,810	$	5,459	$	22,856

(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 March 31,		At December 31,
(dollars in millions)	2023		2022
Device payment plan agreement receivables, gross	$	26,586	$	26,188
Unamortized imputed interest	(538)		(479)
Device payment plan agreement receivables, at amortized cost	26,048		25,709
Allowance (1)	(932)		(881)
Device payment plan agreement receivables, net	$	25,116	$	24,828

Classified in our condensed consolidated balance sheets:
Accounts receivable, net	$	12,587	$	12,929
Other assets	12,529		11,899
Device payment plan agreement receivables, net	$	25,116	$	24,828

(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, and gross write-offs recorded, as of and for the three months ended March 31, 2023, by credit quality indicator and year of origination:


	Year of Origination(1)
(dollars in millions)	2023		2022		2021 and prior		Total
Device payment plan agreement receivables, at amortized cost
New customers	$	877	$	2,352	$	601	$	3,830
Existing customers	3,977		14,455		3,786		22,218
Total	$	4,854	$	16,807	$	4,387	$	26,048
Gross write-offs
New customers	$	12	$	144	$	28	$	184
Existing customers	—		59		44		103
Total	$	12	$	203	$	72	$	287

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

The data presented in the table above was last updated on March 31, 2023.

We assess indicators for the quality of our wireless service receivables portfolio as one overall pool. The following table presents wireless service receivables, at amortized cost, and gross write-offs recorded, as of and for the three months ended March 31, 2023, by year of origination:


	Year of Origination
(dollars in millions)	2023		2022 and prior		Total

Wireless service receivables, at amortized cost	$	4,735	$	254	$	4,989
Gross Write-offs	9		93		102

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

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


(dollars in millions)	Device Payment Plan Agreement Receivables(1)		Wireless Service Plan Receivables
Balance at January 1, 2023	$	881	$	143


Current period provision for expected credit losses	330		130
Write-offs charged against the allowance	(287)		(102)
Recoveries collected	8		8
Balance at March 31, 2023	$	932	$	179

(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)	2023
Unbilled	$	24,826
Billed:
Current	989
Past due	233
Device payment plan agreement receivables, at amortized cost	$	26,048