Revenue Recognition (Tables)

9 Months Ended

Sep. 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 September 30, 2024				Three Months Ended September 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	$	436	(73)	363	429	(48)	381
Nurture	253		—	253	297	—	297
Harvest	106		—	106	131	—	131
Other	44		—	44	57	(3)	54
Total Large Enterprise Revenue	839		(73)	766	914	(51)	863
Mid-Market Enterprise
Grow	211		(6)	205	201	(6)	195
Nurture	167		—	167	203	—	203
Harvest	83		(1)	82	93	(1)	92
Other	10		(4)	6	9	(1)	8
Total Mid-Market Enterprise Revenue	471		(11)	460	506	(8)	498
Public Sector
Grow	131		(21)	110	118	(22)	96
Nurture	87		—	87	98	—	98
Harvest	86		(1)	85	96	—	96
Other	123		—	123	133	—	133
Total Public Sector Revenue	427		(22)	405	445	(22)	423
Wholesale
Grow	259		(73)	186	256	(61)	195
Nurture	183		(6)	177	206	(5)	201
Harvest	261		(35)	226	312	(42)	270
Other	3		—	3	2	—	2
Total Wholesale Revenue	706		(114)	592	776	(108)	668
International and Other
Grow	39		(1)	38	127	(29)	98
Nurture	39		—	39	70	—	70
Harvest	13		—	13	30	—	30
Other	2		—	2	37	—	37
Total International and Other	93		(1)	92	264	(29)	235
Business Segment by Product Category
Grow	1,076		(174)	902	1,131	(166)	965
Nurture	729		(6)	723	874	(5)	869
Harvest	549		(37)	512	662	(43)	619
Other	182		(4)	178	238	(4)	234
Total Business Segment Revenue	2,536		(221)	2,315	2,905	(218)	2,687
Mass Markets Segment by Product Category
Fiber Broadband	190		(3)	187	163	(4)	159
Other Broadband	282		(25)	257	341	(31)	310
Voice and Other	213		(5)	208	232	(9)	223
Total Mass Markets Revenue	685		(33)	652	736	(44)	692
Total Revenue	$	3,221	(254)	2,967	3,641	(262)	3,379

	Nine Months Ended September 30, 2024				Nine Months Ended September 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	$	1,287	(183)	1,104	1,278	(145)	1,133
Nurture	779		—	779	890	—	890
Harvest	337		—	337	403	—	403
Other	131		(1)	130	153	(5)	148
Total Large Enterprise Revenue	2,534		(184)	2,350	2,724	(150)	2,574
Mid-Market Enterprise
Grow	628		(19)	609	601	(21)	580
Nurture	533		—	533	632	—	632
Harvest	248		(3)	245	283	(3)	280
Other	26		(5)	21	27	(4)	23
Total Mid-Market Enterprise Revenue	1,435		(27)	1,408	1,543	(28)	1,515
Public Sector
Grow	383		(62)	321	354	(60)	294
Nurture	262		—	262	298	—	298
Harvest	272		(3)	269	290	—	290
Other	378		—	378	350	—	350
Total Public Sector Revenue	1,295		(65)	1,230	1,292	(60)	1,232
Wholesale
Grow	783		(211)	572	792	(194)	598
Nurture	562		(20)	542	627	(19)	608
Harvest	807		(110)	697	974	(129)	845
Other	7		—	7	9	—	9
Total Wholesale Revenue	2,159		(341)	1,818	2,402	(342)	2,060
International and Other
Grow	117		(3)	114	384	(89)	295
Nurture	121		—	121	214	—	214
Harvest	33		—	33	109	—	109
Other	10		—	10	113	—	113
Total International and Other	281		(3)	278	820	(89)	731
Business Segment by Product Category
Grow	3,198		(478)	2,720	3,409	(509)	2,900
Nurture	2,257		(20)	2,237	2,661	(19)	2,642
Harvest	1,697		(116)	1,581	2,059	(132)	1,927
Other	552		(6)	546	652	(9)	643
Total Business Segment Revenue	7,704		(620)	7,084	8,781	(669)	8,112
Mass Markets Segment by Product Category
Fiber Broadband	541		(10)	531	473	(12)	461
Other Broadband	895		(80)	815	1,065	(96)	969
Voice and Other	639		(23)	616	721	(27)	694
Total Mass Markets Revenue	2,075		(113)	1,962	2,259	(135)	2,124
Total Revenue	$	9,779	(733)	9,046	11,040	(804)	10,236

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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 September 30, 2024 and December 31, 2023:

	September 30, 2024		December 31, 2023
	(Dollars in millions)
Customer receivables, less allowance of $53 and $60	$	1,193	1,256
Contract assets	21		29
Contract liabilities	741		698

Schedule of Capitalized Contract Cost

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

	Three Months Ended September 30, 2024			Three Months Ended September 30, 2023
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)			(Dollars in millions)
Beginning of period balance(1)	$	185	204	183	186
Costs incurred	36		41	31	41
Amortization	(32)		(36)	(37)	(35)
End of period balance(3)	$	189	209	177	192

	Nine Months Ended September 30, 2024			Nine Months Ended September 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	104		126	96	120
Amortization	(97)		(101)	(117)	(106)
Change in contract costs held for sale	—		—	(4)	(14)
End of period balance(3)	$	189	209	177	192

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

(2)Beginning of period balance for the nine months ended September 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 nine months ended September 30, 2023 excludes $10 million of acquisition costs and $14 million of fulfillment costs classified as held for sale related to the EMEA business.