Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31,
	2020			2019
	(Dollars in millions)
Total revenue (1)	$	1,918		2,030
Adjustments for non-ASC 606 revenue (2)	(121		)	(127	)
Total revenue from contracts with customers	$	1,797		1,903

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(1) Reclassifications were made within certain 2019 comparative figures due to the retrospective application of an accounting policy election during the first quarter of 2020. Refer to Note 1—Background and our Form 8-K filing dated May 7, 2020 for further information.

(2)

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 March 31, 2020 and December 31, 2019:

	March 31, 2020		December 31, 2019
	(Dollars in millions)
Customer receivables (1)	$	415	430
Contract liabilities	337		338
Contract assets	15		18

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(1)

Gross customer receivables of $444 million and $462 million, net of allowance for doubtful accounts of $29 million and $32 million, at March 31, 2020 and December 31, 2019, respectively.

Capitalized contract cost

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

	Three Months Ended March 31, 2020					Three Months Ended March 31, 2019
	Acquisition Costs			Fulfillment Costs		Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	86		64		90		57
Costs incurred	14			6		16		4
Amortization	(16		)	(9	)	(16	)	(4	)
End of period balance	$	84		61		90		57