Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue from external customers by products and services

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. The amounts in the tables below include the Latin American and ILEC businesses revenues prior to their sales on August 1, 2022 and October 3, 2022, respectively:

	Year Ended December 31, 2022
	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	$	667	(227)	440
IP and Data Services	1,510		—	1,510
Fiber Infrastructure	830		(136)	694
Voice and Other	638		—	638
Total IGAM Revenue	3,645		(363)	3,282
Large Enterprise
Compute and Application Services	621		(60)	561
IP and Data Services	1,517		—	1,517
Fiber Infrastructure	478		(46)	432
Voice and Other	793		—	793
Total Large Enterprise Revenue	3,409		(106)	3,303
Mid-Market Enterprise
Compute and Application Services	135		(29)	106
IP and Data Services	1,629		(4)	1,625
Fiber Infrastructure	192		(7)	185
Voice and Other	509		—	509
Total Mid-Market Enterprise Revenue	2,465		(40)	2,425
Wholesale
Compute and Application Services	242		(157)	85
IP and Data Services	1,115		—	1,115
Fiber Infrastructure	652		(113)	539
Voice and Other	1,511		(239)	1,272
Total Wholesale Revenue	3,520		(509)	3,011
Business Segment by Product Category
Compute and Application Services	1,665		(473)	1,192
IP and Data Services	5,771		(4)	5,767
Fiber Infrastructure	2,152		(302)	1,850
Voice and Other	3,451		(239)	3,212
Total Business Segment Revenue	13,039		(1,018)	12,021
Mass Markets Segment by Product Category
Fiber Broadband	604		(18)	586
Other Broadband	2,163		(200)	1,963
Voice and Other	1,672		(134)	1,538
Total Mass Markets Revenue	4,439		(352)	4,087
Total Revenue	$	17,478	(1,370)	16,108
Timing of revenue
Goods and services transferred at a point in time				$	154
Services performed over time				15,954
Total revenue from contracts with customers				$	16,108

	Year Ended December 31, 2021
	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	$	731	(279)	452
IP and Data Services	1,716		(1)	1,715
Fiber Infrastructure	889		(129)	760
Voice and Other	747		—	747
Total IGAM Revenue	4,083		(409)	3,674
Large Enterprise
Compute and Application Services	696		(62)	634
IP and Data Services	1,583		—	1,583
Fiber Infrastructure	540		(50)	490
Voice and Other	952		(1)	951
Total Large Enterprise Revenue	3,771		(113)	3,658
Mid-Market Enterprise
Compute and Application Services	127		(30)	97
IP and Data Services	1,710		(6)	1,704
Fiber Infrastructure	207		(8)	199
Voice and Other	605		—	605
Total Mid-Market Enterprise Revenue	2,649		(44)	2,605
Wholesale
Compute and Application Services	188		(159)	29
IP and Data Services	1,198		—	1,198
Fiber Infrastructure	622		(118)	504
Voice and Other	1,608		(252)	1,356
Total Wholesale Revenue	3,616		(529)	3,087
Business Segment by Product Category
Compute and Application Services	1,742		(530)	1,212
IP and Data Services	6,207		(7)	6,200
Fiber Infrastructure	2,258		(305)	1,953
Voice and Other	3,912		(253)	3,659
Total Business Segment Revenue	14,119		(1,095)	13,024
Mass Markets Segment by Product Category
Fiber Broadband	524		—	524
Other Broadband	2,507		(227)	2,280
Voice and Other	2,537		(570)	1,967
Total Mass Markets Revenue	5,568		(797)	4,771
Total Revenue	$	19,687	(1,892)	17,795
Timing of revenue
Goods and services transferred at a point in time				$	138
Services performed over time				17,657
Total revenue from contracts with customers				$	17,795

	Year Ended December 31, 2020
	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	$	759	(265)	494
IP and Data Services	1,736		—	1,736
Fiber Infrastructure	846		(110)	736
Voice and Other	796		—	796
Total IGAM Revenue	4,137		(375)	3,762
Large Enterprise
Compute and Application Services	665		(82)	583
IP and Data Services	1,628		(2)	1,626
Fiber Infrastructure	601		(46)	555
Voice and Other	1,067		(2)	1,065
Total Large Enterprise Revenue	3,961		(132)	3,829
Mid-Market Enterprise
Compute and Application Services	127		(16)	111
IP and Data Services	1,809		(6)	1,803
Fiber Infrastructure	212		(9)	203
Voice and Other	753		—	753
Total Mid-Market Enterprise Revenue	2,901		(31)	2,870
Wholesale
Compute and Application Services	184		(161)	23
IP and Data Services	1,249		—	1,249
Fiber Infrastructure	618		(121)	497
Voice and Other	1,758		(258)	1,500
Total Wholesale Revenue	3,809		(540)	3,269
Business Segment by Product Category
Compute and Application Services	1,735		(524)	1,211
IP and Data Services	6,422		(8)	6,414
Fiber Infrastructure	2,277		(286)	1,991
Voice and Other	4,374		(260)	4,114
Total Business Segment Revenue	14,808		(1,078)	13,730
Mass Markets Segment by Product Category
Fiber Broadband	427		—	427
Other Broadband	2,639		(236)	2,403
Voice and Other	2,838		(601)	2,237
Total Mass Markets Revenue	5,904		(837)	5,067
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

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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 classified as held for sale, as of December 31, 2022 and 2021:

	December 31, 2022		December 31, 2021
	(Dollars in millions)
Customer receivables(1)	$	1,424	1,493
Contract assets(2)	34		73
Contract liabilities(3)	656		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 $73 million and $102 million, at December 31, 2022 and December 31, 2021, respectively. These amounts exclude customer receivables, net, classified as held for sale of $76 million at December 31, 2022 (related to the EMEA business) and $288 million at December 31, 2021 (related to both the Latin American business and the ILEC business).

(2)These amounts exclude contract assets classified as held for sale of $16 million at December 31, 2022 (related to the EMEA business) and $9 million at December 31, 2021 (related to both the Latin American business and the ILEC business).

(3)These amounts exclude contract liabilities classified as held for sale of $59 million at December 31, 2022 (related to the EMEA business) and $161 million at December 31, 2021 (related to both the Latin American business and the ILEC business).

Capitalized contract cost

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

	Year Ended December 31, 2022
	Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	222	186
Costs incurred	172		158
Amortization	(192)		(149)
Classified as held for sale(1)	—		(3)
End of period balance	$	202	192

	Year Ended December 31, 2021
	Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	289	216
Costs incurred	176		151
Amortization	(209)		(149)
Classified as held for sale(2)	(34)		(32)
End of period balance	$	222	$	186

______________________________________________________________________

(1)Represents changes in amounts classified as held for sale related to the divestitures of our Latin American and ILEC businesses on August 1, 2022 and October 3, 2022, respectively, and $6 million acquisition costs and no fulfillment costs classified as held for sale as of December 31, 2022 related to the planned divestiture of the EMEA business. See Note 2—Divestitures of the Latin American and ILEC Businesses and Planned Divestiture of the EMEA Business.

(2)Represents the amounts classified as held for sale related to the divestitures of our Latin American and ILEC businesses on August 1, 2022 and October 3, 2022, respectively. See Note 2—Divestitures of the Latin American and ILEC Businesses and Planned Divestiture of the EMEA Business.