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Equipment Installment Plans
 9 Months Ended
Sep. 30, 2024
Receivables [Abstract]  
Equipment Installment Plans
Note 4 Equipment Installment Plans
UScellular sells devices to customers under equipment installment plans over a specified time period. For certain equipment installment plans, after a specified period of time or amount of payments, the customer may have the right to upgrade to a new device and have the remaining unpaid equipment installment contract balance waived, subject to certain conditions, including trading in the original device in good working condition and signing a new equipment installment contract.
The following table summarizes equipment installment plan receivables.
September 30, 2024December 31, 2023
(Dollars in millions)  
Equipment installment plan receivables, gross$1,075 $1,151 
Allowance for credit losses(80)(90)
Equipment installment plan receivables, net$995 $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)417 484 
Equipment installment plan receivables, net$995 $1,061 
UScellular uses various inputs to evaluate the credit profiles of its customers, including internal data, information from credit bureaus and other sources. From this evaluation, a credit class is assigned to the customer that determines the number of eligible lines, the amount of credit available, and the down payment requirement, if any. These credit classes are grouped into four credit categories: lowest risk, lower risk, slight risk and higher risk. A customer's assigned credit class is reviewed periodically and a change is made, if appropriate. An equipment installment plan billed amount is considered past due if not paid within 30 days. The balance and aging of the equipment installment plan receivables on a gross basis by credit category were as follows:
September 30, 2024December 31, 2023
Lowest Risk
Lower Risk
Slight Risk
Higher Risk
Total
Lowest Risk
Lower Risk
Slight Risk
Higher Risk
Total
(Dollars in millions)
Unbilled$934 $68 $13 $5 $1,020 $977 $88 $16 $4 $1,085 
Billed — current34 3 1 — 38 35 5 2 1 43 
Billed — past due10 4 2 1 17 12 7 3 1 23 
Total$978 $75 $16 $6 $1,075 $1,024 $100 $21 $6 $1,151 
The balance of the equipment installment plan receivables as of September 30, 2024 on a gross basis by year of origination were as follows:
2021202220232024
Total
(Dollars in millions)
Lowest Risk$1 $189 $395 $393 $978 
Lower Risk— 8 26 41 75 
Slight Risk— 1 4 11 16 
Higher Risk— — 2 4 6 
Total$1 $198 $427 $449 $1,075 
The write-offs, net of recoveries for the nine months ended September 30, 2024 on a gross basis by year of origination were as follows:
2021202220232024
Total
(Dollars in millions)
Write-offs, net of recoveries$(1)$15 $34 $6 $54 
Activity for the nine months ended September 30, 2024 and 2023, in the allowance for credit losses for equipment installment plan receivables was as follows:
 September 30, 2024September 30, 2023
(Dollars in millions)  
Allowance for credit losses, beginning of period$90 $96 
Bad debts expense44 47 
Write-offs, net of recoveries(54)(58)
Allowance for credit losses, end of period$80 $85