XML 37 R12.htm IDEA: XBRL DOCUMENT v3.22.0.1
Revenue Recognition
12 Months Ended
Dec. 31, 2021
Revenue Recognition [Abstract]  
Revenue Recognition (5) Revenue Recognition: We categorize our products, services, and other revenues into the following categories: Data and Internet services include broadband services for consumer and business customers. We provide data transmission services to high volume business customers and other carriers with dedicated high capacity circuits (“nonswitched access”) including services to wireless providers (“wireless backhaul”); Voice services include traditional local and long-distance wireline services, Voice over Internet Protocol (VoIP) services, as well as a number of unified messaging services offered to our consumer and business customers. Voice services also include the long-distance voice origination and termination services that we provide to our business customers and other carriers; Video services include revenues generated from services provided directly to consumer customers as linear terrestrial television services, through Dish satellite TV services, and through partnerships with over-the-top (OTT) video providers. Video services also includes pay-per-view revenues, video on demand, equipment rentals, and video advertising. The Company has made the strategic decision to limit sales of new traditional TV services focusing on our broadband products and OTT video options; Other customer revenue includes switched access revenue, rents collected for collocation services, and revenue from other services and fees. Switched access revenue includes revenues derived from allowing other carriers to use our network to originate and/or terminate their local and long-distance voice traffic (switched access). These services are primarily billed on a minutes-of-use basis applying tariffed rates filed with the FCC or state agencies; and Subsidy and other regulatory revenue includes revenues generated from cost subsidies from state and federal authorities, including the Connect America Fund Phase II. The following tables provide a summary of revenues, by category. Revenues in the following tables include revenues for the Northwest Operations for the four months ended April 30, 2020 (prior to its disposal): Successor Predecessor For the eight For the four For the year For the year months ended months ended ended ended December 31, April 30, December 31, December 31, ($ in millions) 2021 2021 2020 2019 Data and Internet services $ 2,224  $ 1,125  $ 3,478  $ 3,756  Voice services 1,091  647  2,085  2,500  Video services 397  223  789  1,005  Other 246  125  429  477  Revenue from contracts with customers (1) 3,958  2,120  6,781  7,738  Subsidy and other regulatory revenue (2) 222  111  374  369  Total revenue $ 4,180  $ 2,231  $ 7,155  $ 8,107  Successor Predecessor For the eight For the four For the year For the year months ended months ended ended ended December 31, April 30, December 31, December 31, ($ in millions) 2021 2021 2020 2019 Consumer (3) $ 2,125  $ 1,133  $ 3,609  $ 4,175  Business and Wholesale 1,833  987  3,172  3,563  Revenue from contracts with customers (1) 3,958  2,120  6,781  7,738  Subsidy and other regulatory revenue (2) 222  111  374  369  Total revenue $ 4,180  $ 2,231  $ 7,155  $ 8,107  (1)Includes $21 million for the four months ended April 30, 2021 and $42 million for the eight months ended December 31, 2021, and $67 million, and $70 million of lease revenue for the years ended December 31, 2020, and 2019 respectively.(2)Includes $30 million in transition services provided to the purchaser in connection with the divestiture of the Northwest Operations for the year ended December 31, 2020.(3)Due to changes in methodology during the second quarter of 2021, historical periods have been updated to reflect the comparable amounts.  The following is a summary of the changes in the contract assets and contract liabilities: Contract Assets Contract Liabilities ($ in millions) Current Noncurrent Current Noncurrent Balance at December 31, 2020 (Predecessor) $ 6  $ 9  $ 58  $ 20  Revenue recognized included in opening contract balance (4) - (23) (3) Cash received, excluding amounts recognized as revenue - - 22  2  Balance at April 30, 2021 (Predecessor) $ 2  $ 9  $ 57  $ 19  Fresh start accounting adjustments (2) (9) (42) (18) Balance at April 30, 2021 (Predecessor) $ - $ - $ 15  $ 1  Balance at April 30, 2021 (Successor) $ - $ - $ 15  $ 1  Revenue recognized included in opening contract balance - - (20) (2) Credits granted, excluding amounts recognized as revenue - - 30  14  Reclassified between current and concurrent - - 2  (2) Balance at December 31, 2021 (Successor) $ - $ - $ 27  $ 11  Contract Assets Contract Liabilities ($ in millions) Current Noncurrent Current Noncurrent Balance at January 1, 2019 (Predecessor) $ 37  $ 8  $ 41  $ 21  Revenue recognized included in opening contract balance (34) - (68) (12) Cash received, excluding amounts recognized as revenue - - 85  11  Credits granted, excluding amounts recognized as revenue 3  1  - - Reclassified between Current and Noncurrent - - - - Balance at December 31, 2020 (Predecessor) $ 6  $ 9  $ 58  $ 20  The unsatisfied obligations for retail customers consist of amounts in advance billings, which are expected to be earned within the following monthly billing cycle. Unsatisfied obligations for wholesale customers are based on a point-in-time calculation and determined by the number of circuits provided and the contractual price. These wholesale customer obligations change from period to period based on new circuits added as well as circuits that are terminated. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. Successor ($ in millions) Revenue from contracts with customers 2022 $ 758 2023 383 2024 214 2025 96 2026 53 Thereafter 91 Total $ 1,595