v3.25.1
Equipment Installment Plans (Table)
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Equipment installment plan receivables
The following table summarizes equipment installment plan receivables.
March 31, 2025December 31, 2024
(Dollars in millions)  
Equipment installment plan receivables, gross$1,054 $1,110 
Allowance for credit losses(78)(82)
Equipment installment plan receivables, net$976 $1,028 
Net balance presented in the Consolidated Balance Sheet as:
Accounts receivable — Customers and agents (Current portion)$567 $592 
Other assets and deferred charges (Non-current portion)409 436 
Equipment installment plan receivables, net$976 $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:
March 31, 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$898 $76 $13 $6 $993 $955 $77 $13 $5 $1,050 
Billed — current38 4 1 — 43 36 4 1 1 42 
Billed — past due10 5 2 1 18 10 5 2 1 18 
Total$946 $85 $16 $7 $1,054 $1,001 $86 $16 $7 $1,110 
The balance of the equipment installment plan receivables as of March 31, 2025 on a gross basis by year of origination were as follows:
2022202320242025
Total
(Dollars in millions)
Lowest Risk$82 $271 $475 $118 $946 
Lower Risk4 17 48 16 85 
Slight Risk— 2 9 5 16 
Higher Risk— 1 5 1 7 
Total$86 $291 $537 $140 $1,054 
Equipment installment plans allowance for credit losses
The write-offs, net of recoveries for the three months ended March 31, 2025 on a gross basis by year of origination were as follows:
2022202320242025
Total
(Dollars in millions)
Write-offs, net of recoveries$1 $5 $13 $—$19 
Activity for the three months ended March 31, 2025 and 2024, in the allowance for credit losses for equipment installment plan receivables was as follows:
 March 31, 2025March 31, 2024
(Dollars in millions)  
Allowance for credit losses, beginning of period$82 $90 
Bad debts expense15 22 
Write-offs, net of recoveries(19)(24)
Allowance for credit losses, end of period$78 $88