Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

The following table provides our total revenue by product and service category as well as 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:


	Three Months Ended September 30, 2022				Three Months Ended September 30, 2021
	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)
Fiber Infrastructure	$	487	(33)	454	495	(30)	465
Voice and Other	429		(46)	383	522	(83)	439
IP and Data Services	108		—	108	118	—	118
Affiliate Services	594		(11)	583	595	(9)	586
Total Revenue	$	1,618	(90)	1,528	1,730	(122)	1,608


	Nine Months Ended September 30, 2022				Nine Months Ended September 30, 2021
	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)
Fiber Infrastructure	$	1,481	(100)	1,381	1,500	(90)	1,410
Voice and Other	1,331		(152)	1,179	1,595	(251)	1,344
IP and Data Services	336		—	336	357	—	357
Affiliate Services	1,758		(34)	1,724	1,794	(18)	1,776
Total revenue	$	4,906	(286)	4,620	5,246	(359)	4,887

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(1)Includes regulatory revenue and lease revenue 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 September 30, 2022 and December 31, 2021:


	September 30, 2022		December 31, 2021
	(Dollars in millions)
Customer receivables (1)	$	278	298
Contract assets	9		10
Contract liabilities	341		317

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(1)Reflects gross customer receivables, including gross affiliate receivables, of $305 million and $328 million, net of allowance for credit losses of $27 million and $30 million, at September 30, 2022 and December 31, 2021, respectively.

Capitalized contract cost

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


	Three Months Ended September 30, 2022			Three Months Ended September 30, 2021
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	62	47	68	49
Costs incurred	13		9	12	7
Amortization	(13)		(10)	(14)	(9)
End of period balance	$	62	46	66	47


	Nine Months Ended September 30, 2022				Nine Months Ended September 30, 2021
	Acquisition Costs		Fulfillment Costs		Acquisition Costs	Fulfillment Costs
	(Dollars in millions)
Beginning Balance	$	64	$	47	73	$	54
Cost Incurred	38		28		36	19
Amortization	(40)		(29)		(43)	(26)
Ending Balances	$	62	46		66	47