Accounts Receivable

12 Months Ended

Dec. 31, 2011

Accounts Receivable

Accounts Receivable

(5) Accounts Receivable

        The following table presents details of our accounts receivable balances:

	Successor			Predecessor
	December 31, 2011			December 31, 2010
	(Dollars in millions)
Trade receivables	$	868			920
Earned and unbilled receivables		270			271
Purchased and other receivables		128			156
Total accounts receivable		1,266			1,347
Less: allowance for doubtful accounts		(62	)		(83	)
Accounts receivable, less allowance	$	1,204			1,264

        We are exposed to concentrations of credit risk from residential and business customers within our local service area, business customers outside of our local service area and from other telecommunications service providers. We generally do not require collateral to secure our receivable balances. We have agreements with other telecommunications service providers whereby we agree to bill and collect on their behalf for services rendered by those providers to our customers within our local service area. We purchase accounts receivable from other telecommunications service providers primarily on a recourse basis and include these amounts in our accounts receivable balance. We have not experienced any significant loss associated with these purchased receivables.

        The following table presents details of our allowance for doubtful accounts:

	Allowance for Doubtful Accounts
	(Dollars in millions)
Balance at January 1, 2009 (Predecessor)	$	129
Charged to expense—net		130
Deductions		(159	)
Balance at December 31, 2009 (Predecessor)		100
Charged to expense—net		86
Deductions		(103	)
Balance at December 31, 2010 (Predecessor)		83
Charged to expense—net		19
Deductions		(22	)
Balance at March 31, 2011(Predecessor)	$	80
Fair value adjustment		(80	)
Balance at April 1, 2011 (Successor)	$	—
Charged to expense—net		62
Deductions		—
Balance at December 31, 2011 (Successor)	$	62

        As a result of CenturyLink's acquisition of us, the allowance for doubtful accounts as of the acquisition date of $80 million was reduced to zero and our gross accounts receivable were reduced by $80 million to reflect its acquisition date fair value.