Equipment Installment Plans (Table)

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Equipment installment plan receivables

The following table summarizes equipment installment plan receivables as of March 31, 2017 and December 31, 2016.

	March 31, 2017		December 31, 2016
(Dollars in millions)
Equipment installment plan receivables, gross	$	661	$	628
Deferred interest		(57)		(53)
Equipment installment plan receivables, net of deferred interest		604		575
Allowance for credit losses		(53)		(50)
Equipment installment plan receivables, net	$	551	$	525
Net balance presented in the Consolidated Balance Sheet as:
Accounts receivable — Due from customers and agents (Current portion)	$	356	$	345
Other assets and deferred charges (Non-current portion)		195		180
Equipment installment plan receivables, net	$	551	$	525

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, 2017						December 31, 2016
	Lower Risk		Higher Risk		Total		Lower Risk		Higher Risk		Total
(Dollars in millions)
Unbilled	$	582	$	44	$	626	$	553	$	38	$	591
Billed — current		20		2		22		23		2		25
Billed — past due		10		3		13		10		2		12
Equipment installment plan receivables, gross	$	612	$	49	$	661	$	586	$	42	$	628

Equipment installment plans allowance for credit losses

The activity in the allowance for credit losses balance for the equipment installment plan receivables was as follows:

	March 31, 2017		March 31, 2016
(Dollars in millions)
Allowance for credit losses, beginning of period	$	50	$	26
Bad debts expense		15		11
Write-offs, net of recoveries		(12)		(9)
Allowance for credit losses, end of period	$	53	$	28