v3.20.2
Receivables and Expected Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Schedule of Equipment Installment Plan Receivables
The following table summarizes the EIP receivables, including imputed discounts and related allowance for credit losses:
(in millions)June 30, 2020December 31, 2019
EIP receivables, gross (1)
$5,084  $4,582  
Unamortized imputed discount(229) (299) 
EIP receivables, net of unamortized imputed discount4,855  4,283  
Allowance for credit losses (2)
(262) (100) 
EIP receivables, net of allowance for credit losses and imputed discount$4,593  $4,183  
Classified on the balance sheet as:
Equipment installment plan receivables, net of allowance for credit losses and imputed discount$3,194  $2,600  
Equipment installment plan receivables due after one year, net of allowance for credit losses and imputed discount1,399  1,583  
EIP receivables, net of allowance for credit losses and imputed discount$4,593  $4,183  
(1) Through the Merger, we acquired EIP receivables with a fair value of $1.3 billion as of April 1, 2020. As they were recorded at fair value, an imputed discount was not recognized on the acquired receivables.
(2) Allowance for credit losses as of June 30, 2020 was impacted by the cumulative effect of initially applying the new credit loss standard on our receivables portfolio on January 1, 2020, which resulted in an increase to our allowance for credit losses of $91 million.
Schedule of Equipment Installment Plan Receivables by Credit Category As a part of the adoption of the new credit loss standard, we now disclose our EIP receivables portfolio disaggregated by origination year. EIP receivables acquired through the Merger are also presented by origination year. The following table presents the amortized cost of our EIP receivables by delinquency status, customer credit class, and year of origination as of June 30, 2020.
Originated in 2020Originated in 2019Originated prior to 2019Total EIP Receivables, net of
unamortized imputed discounts
(in millions)PrimeSubprimePrimeSubprimePrimeSubprimePrimeSubprimeGrand total
Current - 30 days past due$973  $1,222  $1,041  $1,034  $291  $146  $2,305  $2,402  $4,707  
31 - 60 days past due7  17  12  29  3  5  22  51  73  
61 - 90 days past due3  8  5  15  1  2  9  25  34  
More than 90 days past due2  6  6  19  2  6  10  31  41  
EIP receivables, net of unamortized imputed discount$985  $1,253  $1,064  $1,097  $297  $159  $2,346  $2,509  $4,855  
Schedule of Unamortized Imputed Discount and Allowance for Credit Losses for Equipment Installment Plan Receivables
Activity for the six months ended June 30, 2020 and 2019, in the allowance for credit losses and unamortized imputed discount balances for the accounts receivable and EIP receivables segments were as follows:
June 30, 2020June 30, 2019
(in millions)Accounts Receivable AllowanceEIP Receivables AllowanceTotalAccounts Receivable AllowanceEIP Receivables AllowanceTotal
Allowance for credit losses and imputed discount, beginning of period$61  $399  $460  $67  $449  $516  
Beginning balance adjustment due to implementation of the new credit loss standard—  91  91  —  —  —  
Bad debt expense178  168  346  31  113  144  
Write-offs, net of recoveries(56) (96) (152) (37) (127) (164) 
Change in imputed discount on short-term and long-term EIP receivablesN/A10  10  N/A89  89  
Impact on the imputed discount from sales of EIP receivablesN/A(81) (81) N/A(84) (84) 
Allowance for credit losses and imputed discount, end of period$183  $491  $674  $61  $440  $501