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Equipment Installment Plans (Tables)
 9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Equipment installment plan receivables
The following table summarizes equipment installment plan receivables.
September 30, 2021December 31, 2020
(Dollars in millions)
Equipment installment plan receivables, gross$1,022 $1,007 
Allowance for credit losses(70)(78)
Equipment installment plan receivables, net$952 $929 
Net balance presented in the Consolidated Balance Sheet as:
Accounts receivable — Customers and agents (Current portion)$607 $590 
Other assets and deferred charges (Non-current portion)345 339 
Equipment installment plan receivables, net$952 $929 
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:
September 30, 2021December 31, 2020
Lowest Risk
Lower Risk
Slight Risk
Higher Risk
Total
Lowest Risk
Lower Risk
Slight Risk
Higher Risk
Total
(Dollars in millions)
Unbilled$840 $93 $23 $6 $962 $819 $98 $22 $9 $948 
Billed — current36 5 1 — 42 36 5 1 1 43 
Billed — past due10 5 2 1 18 8 5 2 1 16 
Total$886 $103 $26 $7 $1,022 $863 $108 $25 $11 $1,007 
The balance of the equipment installment plan receivables as of September 30, 2021 on a gross basis by year of origination were as follows:
2018201920202021
Total
(Dollars in millions)
Lowest Risk$1 $84 $346 $455 $886 
Lower Risk— 6 36 61 103 
Slight Risk— 1 6 19 26 
Higher Risk— — 2 5 7 
Total$1 $91 $390 $540 $1,022 
Equipment installment plans allowance for credit losses
Activity for the nine months ended September 30, 2021 and 2020, in the allowance for credit losses for equipment installment plan receivables was as follows:
September 30, 2021September 30, 2020
(Dollars in millions)
Allowance for credit losses, beginning of period$78 $84 
Bad debts expense21 34 
Write-offs, net of recoveries(29)(43)
Allowance for credit losses, end of period$70 $75