Accounts Receivable (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Schedule of accounts receivable

The following table presents details of our accounts receivable balances:

	Years Ended December 31,
	2021		2020
	(Dollars in millions)
Trade receivables	$	495	570
Earned and unbilled receivables	184		158
Other	2		—
Total accounts receivable	681		728
Less: allowance for credit losses	(39)		(45)
Accounts receivable, less allowance	$	642	683

Allowance for credit losses on financing receivables

The following table presents the activity of our allowance for credit losses for our accounts receivable portfolio:

	Years Ended December 31,
	2021		2020
	(Dollars in millions)
Balance at beginning of period (1)	$	45	18
Provision for expected losses	19		41
Write-offs charged against the allowance	(27)		(23)
Recoveries collected	5		11
Reclassified as held for sale (2)	(3)		—
Foreign currency exchange rate changes adjustment	—		(2)
Balance at end of period	$	39	45

______________________________________________________________________ 

(1) The beginning balance for the year ended December 31, 2020 includes the cumulative effect of the adoption of the new credit loss standard.

(2) Represents the amounts reclassified as held for sale related to our planned divestiture. See Note 2—Planned Divestiture of the Latin American Business.

The following table presents details of our allowance for credit losses:

	Beginning Balance		Additions	Deductions	Ending Balance
	(Dollars in millions)
2021	$	45	19	(25)	39
2020(1)	13		41	(9)	45
2019	11		24	(22)	13

_______________________________________________________________________________

(1)On January 1, 2020, we adopted ASU 2016-13 "Measurement of Credit Losses on Financial Instruments" and recognized a cumulative adjustment to our accumulated deficit as of the date of adoption of $3 million, net of $2 million tax effect. This adjustment is included within "Deductions". Please refer to Note 6—Credit Losses on Financial Instruments for more information.