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Device Payment Plan and Wireless Service Receivables (Tables)

6 Months Ended

Jun. 30, 2023

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


	At June 30, 2023
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	12,810	$	5,202	$	6,096	$	24,108
Less Allowance for credit losses	502		188		232		922
Accounts receivable, net of allowance	$	12,308	$	5,014	$	5,864	$	23,186

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

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


	At June 30,		At December 31,
(dollars in millions)	2023		2022
Device payment plan agreement receivables, gross	$	26,521	$	26,188
Unamortized imputed interest	(579)		(479)
Device payment plan agreement receivables, at amortized cost	25,942		25,709
Allowance (1)	(1,007)		(881)
Device payment plan agreement receivables, net	$	24,935	$	24,828

Classified in our condensed consolidated balance sheets:
Accounts receivable, net	$	12,308	$	12,929
Other assets	12,627		11,899
Device payment plan agreement receivables, net	$	24,935	$	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 six months ended June 30, 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	$	1,573	$	1,964	$	360	$	3,897
Existing customers	7,087		12,656		2,302		22,045
Total	$	8,660	$	14,620	$	2,662	$	25,942
Gross write-offs
New customers	$	61	$	269	$	42	$	372
Existing customers	3		116		69		188
Total	$	64	$	385	$	111	$	560

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

The data presented in the table above was last updated on June 30, 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 six months ended June 30, 2023, by year of origination:


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

Wireless service receivables, at amortized cost	$	5,078	$	124	$	5,202
Gross write-offs	74		150		224

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	669		250
Write-offs charged against the allowance	(560)		(224)
Recoveries collected	17		19
Balance at June 30, 2023	$	1,007	$	188

(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 June 30,
(dollars in millions)	2023
Unbilled	$	24,712
Billed:
Current	1,007
Past due	223
Device payment plan agreement receivables, at amortized cost	$	25,942