Equipment Installment Plans (Table)

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Equipment installment plan receivables

The following table summarizes equipment installment plan receivables.

December 31,	2023		2022
(Dollars in millions)
Equipment installment plan receivables, gross	$	1,151	$	1,211
Allowance for credit losses	(90)		(96)
Equipment installment plan receivables, net	$	1,061	$	1,115
Net balance presented in the Consolidated Balance Sheet as:
Accounts receivable — Customers and agents (Current portion)	$	577	$	646
Other assets and deferred charges (Non-current portion)	484		469
Equipment installment plan receivables, net	$	1,061	$	1,115

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:

	December 31, 2023										December 31, 2022
	Lowest Risk		Lower Risk		Slight Risk		Higher Risk		Total		Lowest Risk		Lower Risk		Slight Risk		Higher Risk		Total
(Dollars in millions)
Unbilled	$	977	$	88	$	16	$	4	$	1,085	$	1,016	$	98	$	22	$	5	$	1,141
Billed — current	35		5		2		1		43		41		5		2		—		48
Billed — past due	12		7		3		1		23		13		6		2		1		22
Total	$	1,024	$	100	$	21	$	6	$	1,151	$	1,070	$	109	$	26	$	6	$	1,211

The balance of the equipment installment plan receivables as of December 31, 2023 on a gross basis by year of origination were as follows:

	2021		2022		2023		Total
(Dollars in millions)
Lowest Risk	$	49	$	404	$	571	$	1,024
Lower Risk	3		30		67		100
Slight Risk	—		4		17		21
Higher Risk	—		1		5		6
Total	$	52	$	439	$	660	$	1,151

Equipment installment plans allowance for credit losses

The write-offs, net of recoveries for the year ended December 31, 2023 on a gross basis by year of origination were as follows:

	2021		2022		2023		Total
(Dollars in millions)
Write-offs, net of recoveries	$	13	$	45	$	17	$	75

Activity for the years ended December 31, 2023 and 2022, in the allowance for credit losses for equipment installment plan receivables was as follows:

	2023		2022
(Dollars in millions)
Allowance for credit losses, beginning of year	$	96	$	72
Bad debts expense	69		100
Write-offs, net of recoveries	(75)		(76)
Allowance for credit losses, end of year	$	90	$	96