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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

The following tables provide total revenue by segment, sales channel and product category. It also provides the amount of revenue that is not subject to ASC 606, "Revenue from Contracts with Customers" ("ASC 606"), but is instead governed by other accounting standards:


	Three Months Ended June 30, 2021				Three Months Ended June 30, 2020
	Total revenue		Adjustments for non-ASC 606 revenue (1)	Total revenue from contracts with customers	Total revenue	Adjustments for non-ASC 606 revenue (1)	Total revenue from contracts with customers
	(Dollars in millions)
Business Segment by Sales Channel and Product Category
International and Global Accounts ("IGAM")
Compute and Application Services	$	179	(70)	109	192	(64)	128
IP and Data Services	427		—	427	432	—	432
Fiber Infrastructure Services	216		(32)	184	202	(28)	174
Voice and Other	182		—	182	205	—	205
Total IGAM Revenue	1,004		(102)	902	1,031	(92)	939


	Three Months Ended June 30, 2021				Three Months Ended June 30, 2020
	Total revenue		Adjustments for non-ASC 606 revenue (1)	Total revenue from contracts with customers	Total revenue	Adjustments for non-ASC 606 revenue (1)	Total revenue from contracts with customers
	(Dollars in millions)

Large Enterprise
Compute and Application Services	172		(16)	156	160	(22)	138
IP and Data Services	388		—	388	400	(1)	399
Fiber Infrastructure Services	127		(12)	115	136	(13)	123
Voice and Other	244		—	244	277	—	277
Total Large Enterprise Revenue	931		(28)	903	973	(36)	937

Mid-Market Enterprise
Compute and Application Services	36		(8)	28	35	(3)	32
IP and Data Services	438		(2)	436	463	(1)	462
Fiber Infrastructure Services	53		(2)	51	57	(3)	54
Voice and Other	155		—	155	200	—	200
Total Mid-Market Enterprise Revenue	682		(12)	670	755	(7)	748

Wholesale
Compute and Application Services	49		(41)	8	45	(39)	6
IP and Data Services	297		—	297	313	—	313
Fiber Infrastructure Services	155		(28)	127	152	(30)	122
Voice and Other	404		(62)	342	448	(65)	383
Total Wholesale Revenue	905		(131)	774	958	(134)	824

Business Segment by Product Category
Compute and Application Services	436		(135)	301	432	(128)	304
IP and Data Services	1,550		(2)	1,548	1,608	(2)	1,606
Fiber Infrastructure Services	551		(74)	477	547	(74)	473
Voice and Other	985		(62)	923	1,130	(65)	1,065
Total Business Segment Revenue	$	3,522	(273)	3,249	3,717	(269)	3,448

Mass Markets Segment by Product Category
Consumer Broadband	$	723	(53)	670	726	(55)	671
SBG Broadband	39		(4)	35	39	(5)	34
Voice and Other	518		(19)	499	587	(29)	558
CAF II	122		(122)	—	123	(123)	—
Total Mass Markets Segment	$	1,402	(198)	1,204	1,475	(212)	1,263

Total Revenue	$	4,924	(471)	4,453	5,192	(481)	4,711


	Six Months Ended June 30, 2021				Six Months Ended June 30, 2020
	Total revenue		Adjustments for non-ASC 606 revenue (1)	Total revenue from contracts with customers	Total revenue	Adjustments for non-ASC 606 revenue (1)	Total revenue from contracts with customers
	(Dollars in millions)
Business Segment by Sales Channel and Product Category
International and Global Accounts ("IGAM")
Compute and Application Services	$	358	(139)	219	393	(133)	260
IP and Data Services	854		—	854	869	—	869
Fiber Infrastructure Services	432		(62)	370	404	(54)	350
Voice and Other	373		—	373	406	—	406
Total IGAM Revenue	2,017		(201)	1,816	2,072	(187)	1,885

Large Enterprise
Compute and Application Services	337		(31)	306	314	(39)	275
IP and Data Services	783		—	783	801	(1)	800
Fiber Infrastructure Services	251		(27)	224	274	(23)	251
Voice and Other	497		—	497	550	—	550
Total Large Enterprise Revenue	1,868		(58)	1,810	1,939	(63)	1,876

Mid-Market Enterprise
Compute and Application Services	72		(16)	56	69	(11)	58
IP and Data Services	891		(3)	888	929	(2)	927
Fiber Infrastructure Services	113		(4)	109	111	(7)	104
Voice and Other	322		—	322	407	—	407
Total Mid-Market Enterprise Revenue	1,398		(23)	1,375	1,516	(20)	1,496

Wholesale
Compute and Application Services	97		(81)	16	91	(79)	12
IP and Data Services	602		—	602	631	—	631
Fiber Infrastructure Services	309		(59)	250	305	(60)	245
Voice and Other	826		(125)	701	900	(133)	767
Total Wholesale Revenue	1,834		(265)	1,569	1,927	(272)	1,655

Business Segment by Product Category
Compute and Application Services	864		(267)	597	867	(262)	605
IP and Data Services	3,130		(3)	3,127	3,230	(3)	3,227
Fiber Infrastructure Services	1,105		(152)	953	1,094	(144)	950
Voice and Other	2,018		(125)	1,893	2,263	(133)	2,130
Total Business Segment Revenue	$	7,117	(547)	6,570	7,454	(542)	6,912

Mass Markets Segment by Product Category
Consumer Broadband	$	1,454	(105)	1,349	1,448	(108)	1,340


	Six Months Ended June 30, 2021				Six Months Ended June 30, 2020
	Total revenue		Adjustments for non-ASC 606 revenue (1)	Total revenue from contracts with customers	Total revenue	Adjustments for non-ASC 606 revenue (1)	Total revenue from contracts with customers
	(Dollars in millions)
SBG Broadband	78		(8)	70	78	(8)	70
Voice and Other	1,059		(40)	1,019	1,194	(58)	1,136
CAF II	245		(245)	—	246	(246)	—
Total Mass Markets Segment	$	2,836	(398)	2,438	2,966	(420)	2,546

Total Revenue	$	9,953	(945)	9,008	10,420	(962)	9,458

_____________________________________________________________________

(1)Includes regulatory revenue and lease revenue 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 June 30, 2021 and December 31, 2020:


	June 30, 2021		December 31, 2020
	(Dollars in millions)
Customer receivables(1)	$	1,830	1,889
Contract assets	85		108
Contract liabilities	876		950

______________________________________________________________________

(1)Reflects gross customer receivables of $2.0 billion and $2.1 billion, net of allowance for credit losses of $137 million and $174 million, at June 30, 2021 and December 31, 2020, respectively.

Capitalized Contract Cost

The following tables provide changes in our contract acquisition costs and fulfillment costs:


	Three Months Ended June 30, 2021			Three Months Ended June 30, 2020
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)			(Dollars in millions)
Beginning of period balance	$	279	216	320	220
Costs incurred	45		38	36	34
Amortization	(53)		(37)	(56)	(35)
End of period balance	$	271	217	300	219


	Six Months Ended June 30, 2021			Six Months Ended June 30, 2020
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)			(Dollars in millions)
Beginning of period balance	$	289	216	326	221
Costs incurred	89		75	85	70
Amortization	(107)		(74)	(111)	(72)
End of period balance	$	271	217	300	219