Revenues and Contract Costs (Tables)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Schedule of Receivables from Contracts with Customers

The following table presents information about receivables from contracts with customers:

	At January 1,		At June 30,
(dollars in millions)	2018		2018
Receivables(1)	$	12,073	$	11,412
Device payment plan agreement receivables(2)	1,461		5,258

⁽¹⁾  Balances do not include receivables related to the following contracts: leasing arrangements (such as towers and equipment), captive reinsurance arrangements primarily related to wireless device insurance and the interest on equipment financed on a device payment plan agreement when sold to the customer by an authorized agent.

⁽²⁾  Included in device payment plan agreement receivables presented in Note 6. Balances do not include receivables related to contracts completed prior to January 1, 2018 and receivables derived from the sale of equipment on a device payment plan through an authorized agent.

Contract with Customer, Asset and Liability

The following table represents significant changes in the contract assets balance:

(dollars in millions)	Contract Assets
Balance at January 1, 2018	$	38
Opening balance sheet adjustment related to Topic 606 adoption	1,132
Adjusted opening balance, January 1, 2018	1,170
Increase resulting from new contracts	824
Contract assets reclassified to a receivable or collected in cash	(824		)
Other	(111		)
Balance at June 30, 2018	$	1,059

The following table represents significant changes in the contract liabilities balance:

(dollars in millions)	Contract Liabilities
Balance at January 1, 2018(1)	$	5,086
Opening balance sheet adjustments related to Topic 606 adoption	(634		)
Adjusted opening balance, January 1, 2018	4,452
Net increase in contract liabilities	3,998
Revenue recognized related to contract liabilities existing at January 1, 2018(2)	(3,780		)
Other	(18		)
Balance at June 30, 2018	$	4,652

⁽¹⁾ Prior to the adoption of Topic 606, liabilities related to contracts with customers included advanced billings and deferred revenue, which was included within Other current liabilities and Other liabilities in our consolidated balance sheet at December 31, 2017.

⁽²⁾ The amount related to revenue recognized during the three months ended June 30, 2018 was $0.3 billion.

The balance of contract assets and contract liabilities recorded in our condensed consolidated balance sheet were as follows:

	At June 30,
(dollars in millions)	2018
Assets
Prepaid expenses and other	$	776
Other assets	283
Total	$	1,059
Liabilities
Other current liabilities	$	4,006
Other liabilities	646
Total	$	4,652

Capitalized Contract Cost

Collectively, costs to obtain a contract and costs to fulfill a contract are referred to as Deferred contract costs, which were as follows:

		At June 30,
(dollars in millions)	Amortization Period	2018
Wireless	2 to 3 years	$	2,354
Wireline	2 to 5 years	808
Corporate	2 to 3 years	44
Total		$	3,206

Deferred contract costs are classified as current or non-current within Prepaid expenses and other and Other assets, respectively. The balances of Deferred contract costs included in our condensed consolidated balance sheet were as follows:

	At June 30,
(dollars in millions)	2018
Assets
Prepaid expenses and other	$	1,665
Other assets	1,541
Total	$	3,206