Device Payment Plan Agreement and Wireless Service Receivables (Tables)

9 Months Ended

Sep. 30, 2026

The following table presents information about accounts receivable, net of allowances, recorded in our condensed consolidated balance sheet:


	At September 30, 2026
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	16,338	$	6,276	$	4,950	$	27,564
Less Allowance for credit losses	791		248		160		1,199
Accounts receivable, net of allowance	$	15,547	$	6,028	$	4,790	$	26,365

(1) Other receivables primarily include wireline and other receivables, of which the allowances are individually insignificant.

The following table displays both the current and non-current portions of device payment plan agreement receivables, net, recognized in our condensed consolidated balance sheets:


	At September 30,		At December 31,
(dollars in millions)	2026		2025
Device payment plan agreement receivables, gross	$	32,055	$	34,004
Unamortized imputed interest	(1,015)		(1,053)
Device payment plan agreement receivables, at amortized cost	31,040		32,951
Allowance(1)	(1,510)		(1,628)
Device payment plan agreement receivables, net	$	29,530	$	31,323

Classified in our condensed consolidated balance sheets:
Accounts receivable, net	$	15,547	$	15,777
Other assets	13,983		15,546
Device payment plan agreement receivables, net	$	29,530	$	31,323

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

Financing Receivable Credit Quality Indicators

The following table presents device payment plan agreement receivables, at amortized cost, and gross write-offs recorded, as of and for the nine months ended September 30, 2026, by credit quality indicator and year of origination:


	Year of Origination(1)
(dollars in millions)	2026		2025		2024 and prior		Total
Device payment plan agreement receivables, at amortized cost
New customers	$	2,776	$	2,448	$	757	$	5,981
Existing customers	9,817		11,101		4,141		25,059
Total	$	12,593	$	13,549	$	4,898	$	31,040
Gross write-offs
New customers	$	143	$	386	$	142	$	671
Existing customers	15		199		184		398
Total	$	158	$	585	$	326	$	1,069

(1) Includes accounts that have been suspended at a point in time.

The data presented in the table above was last updated on September 30, 2026.

The following table presents wireless service receivables, at amortized cost, and gross write-offs recorded, as of and for the nine months ended September 30, 2026, by year of origination:


	Year of Origination
(dollars in millions)	2026		2025 and prior		Total

Wireless service receivables, at amortized cost	$	6,219	$	57	$	6,276
Gross write-offs	238		191		429

The data presented in the table above was last updated on September 30, 2026.

Activity in Allowance for Credit Losses for Device Payment Plan Agreement Receivables

Activity in the allowance for credit losses by portfolio segment of receivables was as follows:


(dollars in millions)	Device Payment Plan Agreement Receivables(1)		Wireless Service Plan Receivables
Balance at January 1, 2026	$	1,628	$	244


Current period provision for expected credit losses	900		392
Write-offs charged against the allowance	(1,069)		(429)
Recoveries collected	51		41
Balance at September 30, 2026	$	1,510	$	248

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

Balance and Aging of Device Payment Plan Agreement Receivables on Gross Basis

The balance and aging of the device payment plan agreement receivables, at amortized cost, were as follows:


	At September 30,
(dollars in millions)	2026
Unbilled	$	29,485
Billed:
Current	1,201
Past due	354
Device payment plan agreement receivables, at amortized cost	$	31,040