Device Payment Plan Agreement and Wireless Service Receivables (Tables)

12 Months Ended

Dec. 31, 2025

The following table presents information about accounts receivable, net of allowances, recorded in our consolidated balance sheet:


	At December 31, 2025
(dollars in millions)	Device payment plan agreement		Wireless service		Other receivables(1)		Total
Accounts receivable	$	16,611	$	6,062	$	5,674	$	28,347
Less Allowance for credit losses	834		244		172		1,250
Accounts receivable, net of allowance	$	15,777	$	5,818	$	5,502	$	27,097

(1) Other receivables primarily include wireline and other receivables, of which the allowances are individually insignificant.

The following table displays both the current and non-current portions of device payment plan agreement receivables, net, recognized in our consolidated balance sheets:


	(dollars in millions)
At December 31,	2025		2024
Device payment plan agreement receivables, gross	$	34,004	$	31,308
Unamortized imputed interest	(1,053)		(975)
Device payment plan agreement receivables, at amortized cost	32,951		30,333
Allowance(1)	(1,628)		(1,315)
Device payment plan agreement receivables, net	$	31,323	$	29,018

Classified in our consolidated balance sheets:
Accounts receivable, net	$	15,777	$	15,141
Other assets	15,546		13,877
Device payment plan agreement receivables, net	$	31,323	$	29,018

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

Financing Receivable Credit Quality Indicators

The following table presents device payment plan agreement receivables, at amortized cost, and gross write-offs recorded, as of and for the twelve months ended December 31, 2025, by credit quality indicator and year of origination:


	Year of Origination(1)
(dollars in millions)	2025		2024		2023 and prior		Total
Device payment plan agreement receivables, at amortized cost
New customers	$	3,981	$	1,587	$	452	$	6,020
Existing customers	16,307		8,097		2,527		26,931
Total	$	20,288	$	9,684	$	2,979	$	32,951
Gross write-offs
New customers	$	228	$	496	$	160	$	884
Existing customers	60		223		189		472
Total	$	288	$	719	$	349	$	1,356

(1) Includes accounts that have been suspended at a point in time.

The data presented in the table above was last updated on December 31, 2025.

We assess indicators for the quality of our wireless service receivables portfolio as one overall pool. The following table presents wireless service receivables, at amortized cost, and gross write-offs recorded, as of and for the twelve months ended December 31, 2025, by year of origination:


	Year of Origination
(dollars in millions)	2025		2024 and prior		Total

Wireless service receivables, at amortized cost	$	6,002	$	60	$	6,062
Gross write-offs	351		189		540

The data presented in the table above was last updated on December 31, 2025.

Activity in Allowance for Credit Losses for Device Payment Plan Agreement Receivables

Activity in the allowance for credit losses by portfolio segment of receivables was as follows:


(dollars in millions)	Device Payment Plan Agreement Receivables(1)		Wireless Service Plan Receivables
Balance at January 1, 2025	$	1,315	$	240


Current period provision for expected credit losses	1,622		492
Write-offs charged against the allowance	(1,356)		(540)
Recoveries collected	47		52
Balance at December 31, 2025	$	1,628	$	244

(1) Includes allowance for both short-term and long-term device payment plan agreement receivables.

Balance and Aging of Device Payment Plan Agreement Receivables on Gross Basis

The balance and aging of the device payment plan agreement receivables, at amortized cost, were as follows:



(dollars in millions)	At December 31, 2025
Unbilled	$	31,392
Billed:
Current	1,201
Past due	358
Device payment plan agreement receivables, at amortized cost	$	32,951