Equipment Installment Plans (Tables)

9 Months Ended

Sep. 30, 2019

The following table summarizes equipment installment plan receivables as of September 30, 2019 and December 31, 2018.



	September 30, 2019			December 31, 2018
(Dollars in millions)
Equipment installment plan receivables, gross	$	975		$	974
Allowance for credit losses	(82		)	(77		)
Equipment installment plan receivables, net	$	893		$	897

Net balance presented in the Consolidated Balance Sheet as:
Accounts receivable — Customers and agents (Current portion)	$	574		$	560
Other assets and deferred charges (Non-current portion)	319			337
Equipment installment plan receivables, net	$	893		$	897

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:



	September 30, 2019						December 31, 2018
	Lower Risk		Higher Risk		Total		Lower Risk		Higher Risk		Total
(Dollars in millions)
Unbilled	$	898	$	9	$	907	$	904	$	17	$	921
Billed — current	44		1		45		35		1		36
Billed — past due	21		2		23		15		2		17
Equipment installment plan receivables, gross	$	963	$	12	$	975	$	954	$	20	$	974

Equipment installment plans allowance for credit losses

Activity for the nine months ended September 30, 2019 and 2018, in the allowance for credit losses for equipment installment plan receivables was as follows:



	September 30, 2019			September 30, 2018
(Dollars in millions)
Allowance for credit losses, beginning of period	$	77		$	65
Bad debts expense	60			49
Write-offs, net of recoveries	(55		)	(41		)
Allowance for credit losses, end of period	$	82		$	73