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Equipment Installment Plans (Table) | 6 Months Ended
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Jun. 30, 2024
Receivables [Abstract] |
Equipment installment plan receivables | The following table summarizes equipment installment plan receivables.
| June 30, 2024 |  | December 31, 2023
(Dollars in millions) |  |  |
Equipment installment plan receivables, gross | $ | 1,101 |  |  | $ | 1,151 |
Allowance for credit losses | (85) |  |  | (90) |
Equipment installment plan receivables, net | $ | 1,016 |  |  | $ | 1,061 |
Net balance presented in the Consolidated Balance Sheet as: |  |  |
Accounts receivable — Customers and agents (Current portion) | $ | 578 |  |  | $ | 577 |
Other assets and deferred charges (Non-current portion) | 438 |  |  | 484 |
Equipment installment plan receivables, net | $ | 1,016 |  |  | $ | 1,061 |
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:
| June 30, 2024 |  | December 31, 2023
| Lowest Risk |  | Lower Risk |  | Slight Risk |  | Higher Risk |  | Total |  | Lowest Risk |  | Lower Risk |  | Slight Risk |  | Higher Risk |  | Total
(Dollars in millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unbilled | $ | 960 |  |  | $ | 65 |  |  | $ | 12 |  |  | $ | 5 |  |  | $ | 1,042 |  |  | $ | 977 |  |  | $ | 88 |  |  | $ | 16 |  |  | $ | 4 |  |  | $ | 1,085 |
Billed — current | 39 |  |  | 3 |  |  | 1 |  |  | — |  |  | 43 |  |  | 35 |  |  | 5 |  |  | 2 |  |  | 1 |  |  | 43 |
Billed — past due | 10 |  |  | 4 |  |  | 1 |  |  | 1 |  |  | 16 |  |  | 12 |  |  | 7 |  |  | 3 |  |  | 1 |  |  | 23 |
Total | $ | 1,009 |  |  | $ | 72 |  |  | $ | 14 |  |  | $ | 6 |  |  | $ | 1,101 |  |  | $ | 1,024 |  |  | $ | 100 |  |  | $ | 21 |  |  | $ | 6 |  |  | $ | 1,151 |
The balance of the equipment installment plan receivables as of June 30, 2024 on a gross basis by year of origination were as follows:
| 2021 |  | 2022 |  | 2023 |  | 2024 |  | Total
(Dollars in millions) |  |  |  |  |  |  |  |  |
Lowest Risk | $ | 3 |  |  | $ | 259 |  |  | $ | 462 |  |  | $ | 285 |  |  | $ | 1,009 |
Lower Risk | — |  |  | 11 |  |  | 32 |  |  | 29 |  |  | 72 |
Slight Risk | — |  |  | 1 |  |  | 6 |  |  | 7 |  |  | 14 |
Higher Risk | — |  |  | — |  |  | 3 |  |  | 3 |  |  | 6 |
Total | $ | 3 |  |  | $ | 271 |  |  | $ | 503 |  |  | $ | 324 |  |  | $ | 1,101 |
Equipment installment plans allowance for credit losses | The write-offs, net of recoveries for the six months ended June 30, 2024 on a gross basis by year of origination were as follows:
| 2021 |  | 2022 |  | 2023 |  | 2024 |  | Total
(Dollars in millions) |  |  |  |  |  |  |  |  |
Write-offs, net of recoveries | $ | (1) |  |  | $ | 13 |  |  | $ | 25 |  |  | $ | 1 |  |  | $ | 38 |
Activity for the six months ended June 30, 2024 and 2023, in the allowance for credit losses for equipment installment plan receivables was as follows:
| June 30, 2024 |  | June 30, 2023
(Dollars in millions) |  |  |
Allowance for credit losses, beginning of period | $ | 90 |  |  | $ | 96 |
Bad debts expense | 33 |  |  | 35 |
Write-offs, net of recoveries | (38) |  |  | (39) |
Allowance for credit losses, end of period | $ | 85 |  |  | $ | 92 |

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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://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 29 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-29 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-5 + Details
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