Equipment Installment Plans (Table)

9 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Equipment installment plan receivables

The following table summarizes equipment installment plan receivables as of September 30, 2018 and December 31, 2017.

	September 30, 2018			December 31, 2017
(Dollars in millions)
Equipment installment plan receivables, gross	$	919		$	873
Deferred interest	—			(80		)
Equipment installment plan receivables, net of deferred interest	919			793
Allowance for credit losses	(67		)	(65		)
Equipment installment plan receivables, net	$	852		$	728
Net balance presented in the Consolidated Balance Sheet as:
Accounts receivable — Customers and agents (Current portion)	$	537		$	428
Other assets and deferred charges (Non-current portion)	315			300
Equipment installment plan receivables, net	$	852		$	728

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:

	September 30, 2018						December 31, 2017
	Lower Risk		Higher Risk		Total		Lower Risk		Higher Risk		Total
(Dollars in millions)
Unbilled	$	848	$	21	$	869	$	807	$	20	$	827
Billed — current	32		1		33		31		1		32
Billed — past due	15		2		17		12		2		14
Equipment installment plan receivables, gross	$	895	$	24	$	919	$	850	$	23	$	873

Equipment installment plans allowance for credit losses

Activity for the nine months ended September 30, 2018 and 2017, in the allowance for credit losses balance for the equipment installment plan receivables was as follows:

	September 30, 2018			September 30, 2017
(Dollars in millions)
Allowance for credit losses, beginning of period	$	65		$	50
Bad debts expense	43			42
Write-offs, net of recoveries	(41		)	(34		)
Allowance for credit losses, end of period	$	67		$	58