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Equipment Installment Plans | 6 Months Ended
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Jun. 30, 2015
Disclosure Text Block |
Equipment Installment Plans | 3. Equipment Installment Plans U.S. Cellular offers customers the option to purchase certain devices under an equipment installment contract over a period of up to 24 months. Under certain equipment installment plans, the customer has the right to upgrade to a new device after a specified period of time 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. U.S. Cellular values this trade-in right as a guarantee liability. The guarantee liability is initially measured at fair value and is determined b ased on assumptions including the probability and timing of the customer upgrading to a new device and the fair value of the device being traded-in at the time of trade-in. As of June 30, 2015 and December 31, 2014, the guarantee liability related to these plans was $80.2 million and $57.5 million, respectively, and is reflected in Customer deposits and deferred reve nues in the Consolidated Balance Sheet. U.S. Cellular equipment installment plans do not provide for explicit interest charges. For equipment installment plans with a duration of greater than twelve months, U.S. Cellular imputes interest. The following table summarizes unbilled equipment installment plan receivables as of June 30, 2015 and December 31, 2014. Such amounts are presented on the Consolidated Balance Sheet as Accounts receivable – customers and agents (short-term portion) and Other assets and deferred charges (long-term portion).
(Dollars in thousands) | June 30, 2015 |  | December 31, 2014
Short-term portion of unbilled equipment installment plan receivables, gross | $ | 208,955 |  | $ | 127,400
Short-term portion of unbilled deferred interest |  | (19,488) |  |  | (16,365)
Short-term portion of unbilled allowance for credit losses |  | (7,404) |  |  | (3,686)
Short-term portion of unbilled equipment installment plan receivables, net | $ | 182,063 |  | $ | 107,349
Long-term portion of unbilled equipment installment plan receivables, gross | $ | 73,548 |  | $ | 89,435
Long-term portion of unbilled deferred interest |  | (1,136) |  |  | (2,791)
Long-term portion of unbilled allowance for credit losses |  | (5,176) |  |  | (6,065)
Long-term portion of unbilled equipment installment plan receivables, net | $ | 67,236 |  | $ | 80,579
U.S. Cellular assesses the collectability of equipment installment plan receivables based on historical payment experience, account aging and other qualitative factors. To mitigate credit risk, U.S. Cellular requires certain customers who desire to purchase equipment under an installment plan to make a down p ayment. U.S. Cellular recorded out-of-period adjustments during the six months ended June 30, 2015 due to errors related to equipment installment plan transactions that wer e attributable to 2014. U.S. Cellular has determined that these adjustments were not material to the prior quarterly or annual periods, and also were not material to the current period or anticipated full year 2015 results. These equipment installment pl an adjustments had the impact of reducing Equipment sales revenues by $5.7 million and $6.2 million, and Income before income taxes by $5.3 million and $5.8 million, for the three and six months ended June 30, 2015, respectively.

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- Definition The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 55 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=32702940&loc=SL6953791-111525 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35738203&loc=d3e4975-111524 + Details
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