Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of 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 revenue for the EMEA business prior to its sales on November 1, 2023. See Note 2—Divestitures of the Latin American, ILEC and EMEA Businesses in our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information on these divestitures.

	Three Months Ended June 30, 2024				Three Months Ended June 30, 2023
	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
Large Enterprise
Grow	$	424	(61)	363	428	(47)	381
Nurture	258		—	258	293	—	293
Harvest	112		—	112	133	—	133
Other	43		—	43	45	(1)	44
Total Large Enterprise Revenue	837		(61)	776	899	(48)	851
Mid-Market Enterprise
Grow	210		(7)	203	203	(8)	195
Nurture	178		—	178	210	—	210
Harvest	82		(1)	81	92	(1)	91
Other	8		—	8	9	(1)	8
Total Mid-Market Enterprise Revenue	478		(8)	470	514	(10)	504
Public Sector
Grow	127		(20)	107	119	(19)	100
Nurture	88		—	88	93	—	93
Harvest	92		(1)	91	95	—	95
Other	141		—	141	108	—	108
Total Public Sector Revenue	448		(21)	427	415	(19)	396
Wholesale
Grow	264		(76)	188	265	(62)	203
Nurture	187		(7)	180	206	(8)	198
Harvest	271		(37)	234	330	(43)	287
Other	1		—	1	2	—	2
Total Wholesale Revenue	723		(120)	603	803	(113)	690
International and Other
Grow	38		(1)	37	129	(31)	98
Nurture	40		—	40	72	—	72
Harvest	9		—	9	41	—	41
Other	4		—	4	35	—	35
Total International and Other	91		(1)	90	277	(31)	246
Business Segment by Product Category
Grow	1,063		(165)	898	1,144	(167)	977
Nurture	751		(7)	744	874	(8)	866
Harvest	566		(39)	527	691	(44)	647
Other	197		—	197	199	(2)	197
Total Business Segment Revenue	2,577		(211)	2,366	2,908	(221)	2,687
Mass Markets Segment by Product Category
Fiber Broadband	181		(3)	178	158	(4)	154
Other Broadband	298		(27)	271	355	(32)	323
Voice and Other	212		(9)	203	240	(9)	231
Total Mass Markets Revenue	691		(39)	652	753	(45)	708
Total Revenue	$	3,268	(250)	3,018	3,661	(266)	3,395

	Six Months Ended June 30, 2024				Six Months Ended June 30, 2023
	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
Large Enterprise
Grow	$	851	(110)	741	849	(97)	752
Nurture	526		—	526	593	—	593
Harvest	231		—	231	272	—	272
Other	87		(1)	86	96	(2)	94
Total Large Enterprise Revenue	1,695		(111)	1,584	1,810	(99)	1,711
Mid-Market Enterprise
Grow	417		(13)	404	400	(15)	385
Nurture	366		—	366	429	—	429
Harvest	165		(2)	163	190	(2)	188
Other	16		(1)	15	18	(3)	15
Total Mid-Market Enterprise Revenue	964		(16)	948	1,037	(20)	1,017
Public Sector
Grow	252		(41)	211	236	(38)	198
Nurture	175		—	175	200	—	200
Harvest	186		(2)	184	194	—	194
Other	255		—	255	217	—	217
Total Public Sector Revenue	868		(43)	825	847	(38)	809
Wholesale
Grow	524		(138)	386	536	(133)	403
Nurture	379		(14)	365	421	(14)	407
Harvest	546		(75)	471	662	(87)	575
Other	4		—	4	7	—	7
Total Wholesale Revenue	1,453		(227)	1,226	1,626	(234)	1,392
International and Other
Grow	78		(2)	76	257	(60)	197
Nurture	82		—	82	144	—	144
Harvest	20		—	20	79	—	79
Other	8		—	8	76	—	76
Total International and Other	188		(2)	186	556	(60)	496
Business Segment by Product Category
Grow	2,122		(304)	1,818	2,278	(343)	1,935
Nurture	1,528		(14)	1,514	1,787	(14)	1,773
Harvest	1,148		(79)	1,069	1,397	(89)	1,308
Other	370		(2)	368	414	(5)	409
Total Business Segment Revenue	5,168		(399)	4,769	5,876	(451)	5,425
Mass Markets Segment by Product Category
Fiber Broadband	351		(7)	344	310	(8)	302
Other Broadband	613		(55)	558	724	(65)	659
Voice and Other	426		(18)	408	489	(18)	471
Total Mass Markets Revenue	1,390		(80)	1,310	1,523	(91)	1,432
Total Revenue	$	6,558	(479)	6,079	7,399	(542)	6,857

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(1)Includes regulatory revenue and lease revenue not within the scope of ASC 606.

Schedule of 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 June 30, 2024 and December 31, 2023:

	June 30, 2024		December 31, 2023
	(Dollars in millions)
Customer receivables(1)	$	1,263	1,256
Contract assets	23		29
Contract liabilities	701		698

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(1)Reflects gross customer receivables of $1.3 billion, net of allowance for credit losses of $55 million and $60 million, at June 30, 2024 and December 31, 2023, respectively.

Schedule of Capitalized Contract Cost

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

	Three Months Ended June 30, 2024			Three Months Ended June 30, 2023
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)			(Dollars in millions)
Beginning of period balance(1)	$	182	189	192	182
Costs incurred	35		49	29	39
Amortization	(32)		(34)	(39)	(36)
Change in contract costs held for sale	—		—	1	1
End of period balance(3)	$	185	204	183	186

	Six Months Ended June 30, 2024			Six Months Ended June 30, 2023
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)			(Dollars in millions)
Beginning of period balance(2)	$	182	184	202	192
Costs incurred	68		85	65	79
Amortization	(65)		(65)	(80)	(71)
Change in contract costs held for sale	—		—	(4)	(14)
End of period balance(3)	$	185	204	183	186

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(1)Beginning of period balance for the three months ended June 30, 2023 excludes $11 million of acquisition costs and $15 million fulfillment costs classified as held for sale related to the EMEA business.

(2)Beginning of period balance for the six months ended June 30, 2023 excludes $6 million of acquisition costs and no fulfillment costs classified as held for sale related to the EMEA business.

(3)End of period balance for the three and six months ended June 30, 2023 excludes $10 million of acquisition costs and $14 million of fulfillment costs classified as held for sale related to the EMEA business.