Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Revenue

The following table provides 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 March 31, 2022				Three Months Ended March 31, 2021
	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	$	183	(73)	110	183	(69)	114
IP and Data Services	423		—	423	429	—	429
Fiber Infrastructure	219		(34)	185	217	(30)	187
Voice and Other	174		—	174	191	—	191
Total IGAM Revenue	999		(107)	892	1,020	(99)	921
Large Enterprise
Compute and Application Services	163		(14)	149	169	(15)	154
IP and Data Services	388		—	388	402	—	402
Fiber Infrastructure	113		(13)	100	130	(15)	115
Voice and Other	213		—	213	252	—	252
Total Large Enterprise Revenue	877		(27)	850	953	(30)	923
Mid-Market Enterprise
Compute and Application Services	33		(7)	26	32	(8)	24
IP and Data Services	415		(1)	414	442	(1)	441
Fiber Infrastructure	49		(2)	47	56	(2)	54
Voice and Other	139		—	139	163	—	163
Total Mid-Market Enterprise Revenue	636		(10)	626	693	(11)	682
Wholesale
Compute and Application Services	48		(40)	8	47	(40)	7
IP and Data Services	296		—	296	305	—	305
Fiber Infrastructure	154		(27)	127	154	(31)	123
Voice and Other	391		(64)	327	423	(63)	360
Total Wholesale Revenue	889		(131)	758	929	(134)	795
Business Segment by Product Category
Compute and Application Services	427		(134)	293	431	(132)	299
IP and Data Services	1,522		(1)	1,521	1,578	(1)	1,577
Fiber Infrastructure	535		(76)	459	557	(78)	479
Voice and Other	917		(64)	853	1,029	(63)	966
Total Business Segment Revenue	3,401		(275)	3,126	3,595	(274)	3,321
Mass Markets Segment by Product Category
Fiber Broadband	145		(5)	140	122	—	122
Other Broadband	610		(56)	554	648	(55)	593
Voice and Other	520		(79)	441	664	(145)	519
Total Mass Markets Revenue	1,275		(140)	1,135	1,434	(200)	1,234
Total Revenue	$	4,676	(415)	4,261	5,029	(474)	4,555

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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 March 31, 2022 and December 31, 2021:

	March 31, 2022		December 31, 2021
	(Dollars in millions)
Customer receivables(1)	$	1,365	1,493
Contract assets(2)	70		73
Contract liabilities(3)	671		680

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(1)Reflects gross customer receivables of $1.5 billion and $1.6 billion, net of allowance for credit losses of $99 million and $102 million, at March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022 and December 31, 2021, these amounts exclude customer receivables, net reclassified as held for sale of $260 million and $288 million, respectively.

(2)As of March 31, 2022 and December 31, 2021, these amounts exclude contract assets reclassified as held for sale of $9 million as of both periods.

(3)As of March 31, 2022 and December 31, 2021, these amounts exclude contract liabilities reclassified as held for sale of $154 million and $161 million, respectively.

Capitalized Contract Cost

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

	Three Months Ended March 31, 2022			Three Months Ended March 31, 2021
	Acquisition Costs(1)		Fulfillment Costs(2)	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)			(Dollars in millions)
Beginning of period balance	$	222	186	289	216
Costs incurred	43		40	44	37
Amortization	(52)		(39)	(54)	(37)
Change in contract costs held for sale	2		—	—	—
End of period balance	$	215	187	279	216

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(1)The beginning and ending balance for the three months ended March 31, 2022 exclude acquisition costs reclassified as held for sale of $34 million and $32 million, respectively.

(2)Both the beginning and ending balance for the three months ended March 31, 2022 exclude fulfillment costs reclassified as held for sale of $32 million.