Credit Losses on Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Financing Receivable, Allowance for Credit Loss

The following table presents the activity of our allowance for credit losses by accounts receivable portfolio from December 31, 2021 through December 31, 2023:


	Business		Mass Markets	Total
	(Dollars in millions)
Balance at January 1, 2021(1)	$	25	36	61
Provision for expected losses	10		17	27
Write-offs charged against the allowance	(19)		(35)	(54)
Recoveries collected	3		1	4
Balance at December 31, 2021	$	19	19	38
Provision for expected losses	13		47	60
Write-offs charged against the allowance	(14)		(50)	(64)
Recoveries collected	2		—	2
Balance at December 31, 2022	$	20	16	36
Provision for expected losses	20		46	66
Write-offs charged against the allowance	(26)		(43)	(69)
Recoveries collected	—		1	1
Balance at December 31, 2023	$	14	20	34

(1)Due to an internal reorganization of our reporting categories on January 1, 2021, our accounts receivable portfolios were changed to align with changes to how we manage our customers. Allowance for credit losses previously included in the Consumer and Business portfolio of $32 million and $4 million, respectively, were reclassified to the Mass Markets allowance for credit losses on January 1, 2021, as a result of this change.