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v3.23.1

Equipment Installment Plans (Table) | 3 Months Ended
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Mar. 31, 2023
Receivables [Abstract] |
Equipment installment plan receivables | The following table summarizes equipment installment plan receivables.
| March 31, 2023 |  | December 31, 2022
(Dollars in millions) |  |  |
Equipment installment plan receivables, gross | $ | 1,184 |  |  | $ | 1,211 |
Allowance for credit losses | (94) |  |  | (96) |
Equipment installment plan receivables, net | $ | 1,090 |  |  | $ | 1,115 |
Net balance presented in the Consolidated Balance Sheet as: |  |  |
Accounts receivable — Customers and agents (Current portion) | $ | 623 |  |  | $ | 646 |
Other assets and deferred charges (Non-current portion) | 467 |  |  | 469 |
Equipment installment plan receivables, net | $ | 1,090 |  |  | $ | 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:
| March 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 | $ | 997 |  |  | $ | 95 |  |  | $ | 23 |  |  | $ | 6 |  |  | $ | 1,121 |  |  | $ | 1,016 |  |  | $ | 98 |  |  | $ | 22 |  |  | $ | 5 |  |  | $ | 1,141 |
Billed — current | 38 |  |  | 4 |  |  | 1 |  |  | — |  |  | 43 |  |  | 41 |  |  | 5 |  |  | 2 |  |  | — |  |  | 48 |
Billed — past due | 11 |  |  | 6 |  |  | 2 |  |  | 1 |  |  | 20 |  |  | 13 |  |  | 6 |  |  | 2 |  |  | 1 |  |  | 22 |
Total | $ | 1,046 |  |  | $ | 105 |  |  | $ | 26 |  |  | $ | 7 |  |  | $ | 1,184 |  |  | $ | 1,070 |  |  | $ | 109 |  |  | $ | 26 |  |  | $ | 6 |  |  | $ | 1,211 |
The balance of the equipment installment plan receivables as of March 31, 2023 on a gross basis by year of origination were as follows:
| 2020 |  | 2021 |  | 2022 |  | 2023 |  | Total
(Dollars in millions) |  |  |  |  |  |  |  |  |
Lowest Risk | $ | 16 |  |  | $ | 229 |  |  | $ | 639 |  |  | $ | 162 |  |  | $ | 1,046 |
Lower Risk | 1 |  |  | 17 |  |  | 65 |  |  | 22 |  |  | 105 |
Slight Risk | — |  |  | 2 |  |  | 14 |  |  | 10 |  |  | 26 |
Higher Risk | — |  |  | 1 |  |  | 4 |  |  | 2 |  |  | 7 |
Total | $ | 17 |  |  | $ | 249 |  |  | $ | 722 |  |  | $ | 196 |  |  | $ | 1,184 |
Equipment installment plans allowance for credit losses | The write-offs, net of recoveries for the three months ended March 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 |  |  | $ | 6 |  |  | $ | 14 |  |  | $ | — |  |  | $ | 20 |
Activity for the three months ended March 31, 2023 and 2022, in the allowance for credit losses for equipment installment plan receivables was as follows:
| March 31, 2023 |  | March 31, 2022
(Dollars in millions) |  |  |
Allowance for credit losses, beginning of period | $ | 96 |  |  | $ | 72 |
Bad debts expense | 18 |  |  | 17 |
Write-offs, net of recoveries | (20) |  |  | (16) |
Allowance for credit losses, end of period | $ | 94 |  |  | $ | 73 |

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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 5 -URI https://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -URI https://asc.fasb.org/extlink&oid=123577603&loc=SL6953659-111524 + Details
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- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682 + Details
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