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Equipment Installment Plans (Tables)
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Equipment installment plan receivables
The following table summarizes equipment installment plan receivables.
September 30, 2023December 31, 2022
(Dollars in millions)
Equipment installment plan receivables, gross$1,127 $1,211 
Allowance for credit losses(85)(96)
Equipment installment plan receivables, net$1,042 $1,115 
Net balance presented in the Consolidated Balance Sheet as:
Accounts receivable — Customers and agents (Current portion)$581 $646 
Other assets and deferred charges (Non-current portion)461 469 
Equipment installment plan receivables, net$1,042 $1,115 
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, 2023December 31, 2022
Lowest Risk
Lower Risk
Slight Risk
Higher Risk
Total
Lowest Risk
Lower Risk
Slight Risk
Higher Risk
Total
(Dollars in millions)
Unbilled$952 $88 $18 $6 $1,064 $1,016 $98 $22 $5 $1,141 
Billed — current36 4 1 1 42 41 5 2 — 48 
Billed — past due12 6 2 1 21 13 6 2 1 22 
Total$1,000 $98 $21 $8 $1,127 $1,070 $109 $26 $6 $1,211 
The balance of the equipment installment plan receivables as of September 30, 2023 on a gross basis by year of origination were as follows:
2020202120222023
Total
(Dollars in millions)
Lowest Risk$1 $97 $480 $422 $1,000 
Lower Risk— 6 41 51 98 
Slight Risk— 1 7 13 21 
Higher Risk— — 2 6 8 
Total$1 $104 $530 $492 $1,127 
Equipment installment plans allowance for credit losses
The write-offs, net of recoveries for the nine months ended September 30, 2023 on a gross basis by year of origination were as follows:
202120222023
Total
(Dollars in millions)
Write-offs, net of recoveries$12 $38 $8 $58 
Activity for the nine months ended September 30, 2023 and 2022, in the allowance for credit losses for equipment installment plan receivables was as follows:
September 30, 2023September 30, 2022
(Dollars in millions)
Allowance for credit losses, beginning of period$96 $72 
Bad debts expense47 69 
Write-offs, net of recoveries(58)(54)
Allowance for credit losses, end of period$85 $87