Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue from external customers by products and services

The following tables provide disaggregation of revenue from contracts with customers based on reporting segments and service offerings for the years ended December 31, 2020, 2019 and 2018. It also shows the amount of revenue that is not subject to ASC 606, but is instead governed by other accounting standards.

	Year Ended December 31, 2020
	Total Revenue		Adjustments for Non-ASC 606 Revenue(9)	Total Revenue from Contracts with Customers
	(Dollars in millions)
International and Global Accounts
IP and Data Services (1)	$	1,556	—	1,556
Transport and Infrastructure (2)	1,265		(373)	892
Voice and Collaboration (3)	368		—	368
IT and Managed Services (4)	216		—	216
Total International and Global Accounts Segment Revenue	3,405		(373)	3,032
Enterprise
IP and Data Services (1)	2,474		(2)	2,472
Transport and Infrastructure (2)	1,608		(135)	1,473
Voice and Collaboration (3)	1,424		(1)	1,423
IT and Managed Services (4)	216		—	216
Total Enterprise Segment Revenue	5,722		(138)	5,584
Small and Medium Business
IP and Data Services (1)	1,062		(3)	1,059
Transport and Infrastructure (2)	352		(34)	318
Voice and Collaboration (3)	1,098		(3)	1,095
IT and Managed Services (4)	45		—	45
Total Small and Medium Business Segment Revenue	2,557		(40)	2,517
Wholesale
IP and Data Services (1)	1,280		—	1,280
Transport and Infrastructure (2)	1,764		(517)	1,247
Voice and Collaboration (3)	731		—	731
IT and Managed Services (4)	2		—	2
Total Wholesale Business Segment Revenue	3,777		(517)	3,260
Consumer
Broadband (5)	2,909		(217)	2,692
Voice (6)	1,622		—	1,622
Regulatory (7)	615		(615)	—
Other (8)	105		(15)	90
Total Consumer Segment Revenue	5,251		(847)	4,404
Total revenue	$	20,712	(1,915)	18,797
Timing of revenue
Goods and services transferred at a point in time				$	250
Services performed over time				18,547
Total revenue from contracts with customers				$	18,797

	Year Ended December 31, 2019
	Total Revenue		Adjustments for Non-ASC 606 Revenue(9)	Total Revenue from Contracts with Customers
	(Dollars in millions)
International and Global Accounts
IP and Data Services (1)	$	1,627	—	1,627
Transport and Infrastructure (2)	1,268		(365)	903
Voice and Collaboration (3)	354		—	354
IT and Managed Services (4)	227		—	227
Total International and Global Accounts Segment Revenue	3,476		(365)	3,111
Enterprise
IP and Data Services (1)	2,538		—	2,538
Transport and Infrastructure (2)	1,479		(134)	1,345
Voice and Collaboration (3)	1,423		—	1,423
IT and Managed Services (4)	256		—	256
Total Enterprise Segment Revenue	5,696		(134)	5,562
Small and Medium Business
IP and Data Services (1)	1,091		—	1,091
Transport and Infrastructure (2)	365		(36)	329
Voice and Collaboration (3)	1,226		—	1,226
IT and Managed Services (4)	45		—	45
Total Small and Medium Business Segment Revenue	2,727		(36)	2,691
Wholesale
IP and Data Services (1)	1,365		—	1,365
Transport and Infrastructure (2)	1,907		(545)	1,362
Voice and Collaboration (3)	763		—	763
IT and Managed Services (4)	7		—	7
Total Wholesale Business Segment Revenue	4,042		(545)	3,497
Consumer
Broadband (5)	2,876		(215)	2,661
Voice (6)	1,837		—	1,837
Regulatory (7)	632		(632)	—
Other (8)	172		(26)	146
Total Consumer Segment Revenue	5,517		(873)	4,644
Total revenue	$	21,458	(1,953)	19,505
Timing of revenue
Goods and services transferred at a point in time				$	221
Services performed over time				19,284
Total revenue from contracts with customers				$	19,505

	Year Ended December 31, 2018
	Total Revenue		Adjustments for Non-ASC 606 Revenue(9)	Total Revenue from Contracts with Customers
	(Dollars in millions)
International and Global Accounts
IP and Data Services (1)	$	1,682	—	1,682
Transport and Infrastructure (2)	1,230		(83)	1,147
Voice and Collaboration (3)	365		—	365
IT and Managed Services (4)	266		—	266
Total International and Global Accounts Segment Revenue	3,543		(83)	3,460
Enterprise
IP and Data Services (1)	2,485		—	2,485
Transport and Infrastructure (2)	1,484		(43)	1,441
Voice and Collaboration (3)	1,495		—	1,495
IT and Managed Services (4)	301		—	301
Total Enterprise Segment Revenue	5,765		(43)	5,722
Small and Medium Business
IP and Data Services (1)	1,078		—	1,078
Transport and Infrastructure (2)	424		(40)	384
Voice and Collaboration (3)	1,366		—	1,366
IT and Managed Services (4)	50		—	50
Total Small and Medium Business Segment Revenue	2,918		(40)	2,878
Wholesale
IP and Data Services (1)	1,369		—	1,369
Transport and Infrastructure (2)	2,118		(397)	1,721
Voice and Collaboration (3)	865		—	865
IT and Managed Services (4)	8		—	8
Total Wholesale Business Segment Revenue	4,360		(397)	3,963
Consumer
Broadband (5)	2,824		(213)	2,611
Voice (6)	2,127		—	2,127
Regulatory (7)	727		(727)	—
Other (8)	316		(35)	281
Total Consumer Segment Revenue	5,994		(975)	5,019
Total revenue	$	22,580	(1,538)	21,042
Timing of revenue
Goods and services transferred at a point in time				$	230
Services performed over time				20,812
Total revenue from contracts with customers				$	21,042

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(1)	Includes primarily VPN data network, Ethernet, IP, content delivery and other ancillary services.
(2)	Includes wavelengths, private line, dark fiber services, colocation and data center services, including cloud, hosting and application management solutions, professional services and other ancillary services.
(3)	Includes local, long-distance voice, including wholesale voice, and other ancillary services, as well as VoIP services.
(4)	Includes information technology services and managed services, which may be purchased in conjunction with our other network services.
(5)	Includes high speed, fiber-based and lower speed DSL broadband services.
(6)	Includes local and long-distance services.
(7)	Includes (i) CAF and other support payments designed to reimburse us for various costs related to certain telecommunications services and (ii) other operating revenue from the leasing and subleasing of space.
(8)	Includes retail video services (including our linear TV services), professional services and other ancillary services.
(9)	Includes regulatory revenue, revenue from leasing arrangements and failed-sale-leaseback income in 2018, which are not within the scope of ASC 606.

Contract with customer, asset and liability

The following table provides balances of customer receivables, contract assets and contract liabilities as of December 31, 2020 and December 31, 2019:

	December 31, 2020		December 31, 2019
	(Dollars in millions)
Customer receivables(1)	$	1,889	2,194
Contract assets	108		130
Contract liabilities	950		1,028

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(1)Reflects gross customer receivables of $2.1 billion and $2.3 billion, net of allowance for credit losses of $174 million and $94 million, at December 31, 2020 and December 31, 2019, respectively.

Capitalized contract cost

The following table provides changes in our contract acquisition costs and fulfillment costs:

	December 31, 2020
	Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	326	221
Costs incurred	181		141
Amortization	(218)		(146)
End of period balance	$	289	216

	December 31, 2019
	Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	322	187
Costs incurred	208		158
Amortization	(204)		(124)
End of period balance	$	326	221