Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Schedule of Revenue

The following table provides the amount of revenue that is not subject to ASC 606, but is instead governed by other accounting standards:

	Three Months Ended June 30,					Six Months Ended June 30,
	2019			2018		2019		2018
	(Dollars in millions)
Total revenue	$	2,051		2,101		4,106		4,231
Adjustments for non-ASC 606 revenue (1)	(125		)	(80	)	(252	)	(157	)
Total revenue from contracts with customers	$	1,926		2,021		3,854		4,074

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Includes regulatory revenue, lease revenue, sublease rental income and revenue from fiber capacity lease arrangements which are 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 as of June 30, 2019 and December 31, 2018:

	June 30, 2019		December 31, 2018
	(Dollars in millions)
Customer receivables (1)	$	505	518
Contract liabilities	331		207
Contract assets	70		64

(1)

Gross customer receivables of $540 million and $554 million, net of allowance for doubtful accounts of $35 million and $36 million, at June 30, 2019 and December 31, 2018, respectively.

The following table provides information about revenue recognized for the three and six months ended June 30, 2019 and 2018:

	Three Months Ended June 30,			Six Months Ended June 30,
	2019		2018	2019	2018
	(Dollars in millions)
Revenue recognized in the period from:
Amounts included in contract liability at the beginning of the period (January 1, 2019 and 2018, respectively)	$	4	11	265	280
Performance obligations satisfied in previous periods	—		—	—	—

Capitalized contract cost

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

	Three Months Ended June 30, 2019					Three Months Ended June 30, 2018
	Acquisition Costs			Fulfillment Costs		Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	90		57		90		60
Costs incurred	13			15		14		3
Amortization	(16		)	(12	)	(16	)	(5	)
End of period balance	$	87		60		88		58

	Six Months Ended June 30, 2019					Six Months Ended June 30, 2018
	Acquisition Costs			Fulfillment Costs		Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	90		57		91		61
Costs incurred	29			19		28		7
Amortization	(32		)	(16	)	(31	)	(10	)
End of period balance	$	87		60		88		58