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Equipment Installment Plans (Tables)
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Equipment installment plan receivables
The following table summarizes equipment installment plan receivables.
June 30, 2025December 31, 2024
(Dollars in millions)
Equipment installment plan receivables, gross$1,032 $1,110 
Allowance for credit losses(75)(82)
Equipment installment plan receivables, net$957 $1,028 
Net balance presented in the Consolidated Balance Sheet as:
Accounts receivable — Customers and agents (Current portion)$551 $592 
Other assets and deferred charges (Non-current portion)406 436 
Equipment installment plan receivables, net$957 $1,028 
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:
June 30, 2025December 31, 2024
Lowest Risk
Lower Risk
Slight Risk
Higher Risk
Total
Lowest Risk
Lower Risk
Slight Risk
Higher Risk
Total
(Dollars in millions)
Unbilled$883 $68 $12 $6 $969 $955 $77 $13 $5 $1,050 
Billed — current39 4 1 1 45 36 4 1 1 42 
Billed — past due11 5 1 1 18 10 5 2 1 18 
Total$933 $77 $14 $8 $1,032 $1,001 $86 $16 $7 $1,110 
The balance of the equipment installment plan receivables as of June 30, 2025 on a gross basis by year of origination were as follows:
2022202320242025
Total
(Dollars in millions)
Lowest Risk$40 $214 $420 $259 $933 
Lower Risk2 12 34 29 77 
Slight Risk— 1 6 7 14 
Higher Risk— — 5 3 8 
Total$42 $227 $465 $298 $1,032 
Equipment installment plans allowance for credit losses
The write-offs, net of recoveries for the six months ended June 30, 2025 on a gross basis by year of origination were as follows:
2022202320242025
Total
(Dollars in millions)
Write-offs, net of recoveries$2 $8 $26 $1 $37 
Activity for the six months ended June 30, 2025 and 2024, in the allowance for credit losses for equipment installment plan receivables was as follows:
June 30, 2025June 30, 2024
(Dollars in millions)
Allowance for credit losses, beginning of period$82 $90 
Bad debts expense30 33 
Write-offs, net of recoveries(37)(38)
Allowance for credit losses, end of period$75 $85