Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

The following tables provide total revenue by segment, sales channel and product category. They also provide 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 September 30, 2021				Three Months Ended September 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	$	178	(71)	107	188	(66)	122
IP and Data Services	429		—	429	431	—	431
Fiber Infrastructure Services	230		(33)	197	206	(28)	178
Voice and Other	182		—	182	188	—	188
Total IGAM Revenue	1,019		(104)	915	1,013	(94)	919

Large Enterprise
Compute and Application Services	176		(16)	160	167	(22)	145
IP and Data Services	387		—	387	393	(1)	392
Fiber Infrastructure Services	137		(11)	126	162	(12)	150
Voice and Other	232		—	232	268	—	268
Total Large Enterprise Revenue	932		(27)	905	990	(35)	955

Mid-Market Enterprise
Compute and Application Services	31		(7)	24	32	(3)	29
IP and Data Services	432		(1)	431	460	(1)	459
Fiber Infrastructure Services	53		(2)	51	54	(1)	53
Voice and Other	150		—	150	191	—	191


	Three Months Ended September 30, 2021				Three Months Ended September 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)
Total Mid-Market Enterprise Revenue	666		(10)	656	737	(5)	732

Wholesale
Compute and Application Services	46		(39)	7	47	(41)	6
IP and Data Services	297		—	297	311	—	311
Fiber Infrastructure Services	155		(30)	125	157	(33)	124
Voice and Other	393		(63)	330	443	(64)	379
Total Wholesale Revenue	891		(132)	759	958	(138)	820

Business Segment by Product Category
Compute and Application Services	431		(133)	298	434	(132)	302
IP and Data Services	1,545		(1)	1,544	1,595	(2)	1,593
Fiber Infrastructure Services	575		(76)	499	579	(74)	505
Voice and Other	957		(63)	894	1,090	(64)	1,026
Total Business Segment Revenue	$	3,508	(273)	3,235	3,698	(272)	3,426

Mass Markets Segment by Product Category
Consumer Broadband	$	715	(52)	663	730	(56)	674
SBG Broadband	39		(4)	35	38	(3)	35
Voice and Other	502		(20)	482	578	(27)	551
CAF II	123		(123)	—	123	(123)	—
Total Mass Markets Segment	$	1,379	(199)	1,180	1,469	(209)	1,260

Total Revenue	$	4,887	(472)	4,415	5,167	(481)	4,686


	Nine Months Ended September 30, 2021				Nine Months Ended September 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	$	536	(210)	326	581	(199)	382
IP and Data Services	1,283		—	1,283	1,300	—	1,300
Fiber Infrastructure Services	662		(95)	567	610	(82)	528
Voice and Other	555		—	555	594	—	594
Total IGAM Revenue	3,036		(305)	2,731	3,085	(281)	2,804

Large Enterprise
Compute and Application Services	513		(47)	466	481	(61)	420
IP and Data Services	1,170		—	1,170	1,194	(2)	1,192
Fiber Infrastructure Services	388		(38)	350	436	(35)	401
Voice and Other	729		—	729	818	—	818
Total Large Enterprise Revenue	2,800		(85)	2,715	2,929	(98)	2,831

Mid-Market Enterprise
Compute and Application Services	103		(23)	80	101	(14)	87
IP and Data Services	1,323		(4)	1,319	1,389	(3)	1,386
Fiber Infrastructure Services	166		(6)	160	165	(8)	157
Voice and Other	472		—	472	598	—	598
Total Mid-Market Enterprise Revenue	2,064		(33)	2,031	2,253	(25)	2,228

Wholesale
Compute and Application Services	143		(120)	23	138	(120)	18
IP and Data Services	899		—	899	942	—	942
Fiber Infrastructure Services	464		(89)	375	462	(93)	369
Voice and Other	1,219		(188)	1,031	1,343	(197)	1,146
Total Wholesale Revenue	2,725		(397)	2,328	2,885	(410)	2,475

Business Segment by Product Category
Compute and Application Services	1,295		(400)	895	1,301	(394)	907
IP and Data Services	4,675		(4)	4,671	4,825	(5)	4,820
Fiber Infrastructure Services	1,680		(228)	1,452	1,673	(218)	1,455
Voice and Other	2,975		(188)	2,787	3,353	(197)	3,156
Total Business Segment Revenue	$	10,625	(820)	9,805	11,152	(814)	10,338

Mass Markets Segment by Product Category


	Nine Months Ended September 30, 2021				Nine Months Ended September 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)
Consumer Broadband	$	2,169	(157)	2,012	2,178	(164)	2,014
SBG Broadband	117		(12)	105	116	(11)	105
Voice and Other	1,561		(60)	1,501	1,772	(85)	1,687
CAF II	368		(368)	—	369	(369)	—
Total Mass Markets Segment	$	4,215	(597)	3,618	4,435	(629)	3,806

Total Revenue	$	14,840	(1,417)	13,423	15,587	(1,443)	14,144

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(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, net of amounts reclassified as held for sale, as of September 30, 2021 and December 31, 2020:


	September 30, 2021		December 31, 2020
	(Dollars in millions)
Customer receivables(1)(2)	$	1,491	1,889
Contract assets(3)	71		108
Contract liabilities(4)	703		950

______________________________________________________________________

(1)Reflects gross customer receivables of $1.6 billion and $2.1 billion, net of allowance for credit losses of $107 million and $174 million, at September 30, 2021 and December 31, 2020, respectively.

(2)As of September 30, 2021, amount excludes customer receivables, net reclassified as held for sale of $293 million.

(3)As of September 30, 2021, amount excludes contract assets reclassified as held for sale of $10 million.

(4)As of September 30, 2021, amount excludes contract liabilities reclassified as held for sale of $165 million.

Capitalized Contract Cost

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


	Three Months Ended September 30, 2021			Three Months Ended September 30, 2020
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)			(Dollars in millions)
Beginning of period balance	$	271	217	300	219
Costs incurred	43		37	45	35
Amortization	(51)		(37)	(53)	(37)
Reclassified as held for sale(1)	(35)		(31)	—	—
End of period balance	$	228	186	292	217


	Nine Months Ended September 30, 2021			Nine Months Ended September 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	132		112	130	105
Amortization	(158)		(111)	(164)	(109)
Reclassified as held for sale(1)	(35)		(31)	—	—
End of period balance	$	228	186	292	217

______________________________________________________________________

(1)Represents the amounts reclassified as held for sale related to our planned divestitures. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses.