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Equipment Installment Plans (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Equipment installment plan receivables
The following table summarizes equipment installment plan receivables.
September 30, 2022December 31, 2021
(Dollars in millions)
Equipment installment plan receivables, gross$1,161 $1,085 
Allowance for credit losses(87)(72)
Equipment installment plan receivables, net$1,074 $1,013 
Net balance presented in the Consolidated Balance Sheet as:
Accounts receivable — Customers and agents (Current portion)$642 $639 
Other assets and deferred charges (Non-current portion)432 374 
Equipment installment plan receivables, net$1,074 $1,013 
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, 2022December 31, 2021
Lowest Risk
Lower Risk
Slight Risk
Higher Risk
Total
Lowest Risk
Lower Risk
Slight Risk
Higher Risk
Total
(Dollars in millions)
Unbilled$974 $93 $23 $5 $1,095 $896 $94 $24 $5 $1,019 
Billed — current39 5 1 — 45 40 5 1 1 47 
Billed — past due11 6 3 1 21 10 6 2 1 19 
Total$1,024 $104 $27 $6 $1,161 $946 $105 $27 $7 $1,085 
The balance of the equipment installment plan receivables as of September 30, 2022 on a gross basis by year of origination were as follows:
2019202020212022
Total
(Dollars in millions)
Lowest Risk$1 $87 $380 $556 $1,024 
Lower Risk— 6 40 58 104 
Slight Risk— 1 6 20 27 
Higher Risk— — 2 4 6 
Total$1 $94 $428 $638 $1,161 
Equipment installment plans allowance for credit losses
Activity for the nine months ended September 30, 2022 and 2021, in the allowance for credit losses for equipment installment plan receivables was as follows:
September 30, 2022September 30, 2021
(Dollars in millions)
Allowance for credit losses, beginning of period$72 $78 
Bad debts expense69 21 
Write-offs, net of recoveries(54)(29)
Allowance for credit losses, end of period$87 $70