Equipment Installment Plans (Table)

3 Months Ended

Mar. 31, 2018

The following table summarizes equipment installment plan receivables as of March 31, 2018 and December 31, 2017.

	March 31, 2018		December 31, 2017
(Dollars in millions)
Equipment installment plan receivables, gross	$	871	$	873
Deferred interest		–		(80)
Equipment installment plan receivables, net of deferred interest		871		793
Allowance for credit losses		(66)		(65)
Equipment installment plan receivables, net	$	805	$	728

Net balance presented in the Consolidated Balance Sheet as:
Accounts receivable — Customers and agents (Current portion)	$	496	$	428
Other assets and deferred charges (Non-current portion)		309		300
Equipment installment plan receivables, net	$	805	$	728

Equipment installment plan receivables credit categories

The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows:

	March 31, 2018						December 31, 2017
	Lower Risk		Higher Risk		Total		Lower Risk		Higher Risk		Total
(Dollars in millions)
Unbilled	$	809	$	19	$	828	$	807	$	20	$	827
Billed — current		28		1		29		31		1		32
Billed — past due		12		2		14		12		2		14
Equipment installment plan receivables, gross	$	849	$	22	$	871	$	850	$	23	$	873

Equipment installment plans allowance for credit losses

Activity for the three months ended March 31, 2018 and 2017, in the allowance for credit losses balance for the equipment installment plan receivables was as follows:

	March 31, 2018		March 31, 2017
(Dollars in millions)
Allowance for credit losses, beginning of period	$	65	$	50
Bad debts expense		14		15
Write-offs, net of recoveries		(13)		(12)
Allowance for credit losses, end of period	$	66	$	53