Accounts Receivable

12 Months Ended

Dec. 31, 2012

Accounts Receivable

Accounts Receivable

(5)   Accounts Receivable

        The following table presents details of our accounts receivable balances:

	Successor
	December 31, 2012			December 31, 2011(1)
	(Dollars in millions)
Trade and purchased receivables	$	1,028			1,015
Earned and unbilled receivables		208			217
Other		17			31
Total accounts receivable		1,253			1,263
Less: allowance for doubtful accounts		(76	)		(62	)
Accounts receivable, less allowance	$	1,177			1,201

        We have reclassified prior period amounts of purchased receivables from other to trade and purchased receivables to conform to the current period presentation.

        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. No customers individually represented more than 10% of our accounts receivable for all periods presented herein. 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, 2010 (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
Charged to expense—net		94
Deductions		(78	)
Adjustments		(2	)
Balance at December 31, 2012 (Successor)	$	76

        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 estimated acquisition date fair value.