Revenues and Contract Costs (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Contract with Customer, Asset and Liability

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

	At June 30,		At January 1,		At June 30,		At January 1,
(dollars in millions)	2023		2023		2022		2022
Receivables(1)	$	10,573	$	11,274	$	10,620	$	10,758
Device payment plan agreement receivables(2)	16,878		16,648		14,439		12,888

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

(2)Included in device payment plan agreement receivables presented in Note 6. Receivables derived from the sale of equipment on a device payment plan through an authorized agent are excluded.

The following table presents information about contract balances:

	At June 30,		At January 1,		At June 30,		At January 1,
(dollars in millions)	2023		2023		2022		2022
Contract asset	$	774	$	863	$	880	$	934
Contract liability(1)	8,468		8,234		7,706		7,229

(1) Revenue recognized related to contract liabilities existing at January 1, 2023 were $258 million and $4.6 billion for the three and six months ended June 30, 2023, respectively. Revenue recognized related to contract liabilities existing at January 1, 2022 were $365 million and $4.7 billion for the three and six months ended June 30, 2022, respectively.

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

	At June 30,		At December 31,
(dollars in millions)	2023		2022
Assets
Prepaid expenses and other	$	542	$	656
Other assets	232		207
Total	$	774	$	863
Liabilities
Other current liabilities	$	6,699	$	6,583
Other liabilities	1,769		1,651
Total	$	8,468	$	8,234

Capitalized Contract Cost

The balances of deferred contract costs included in our condensed consolidated balance sheets were as follows:

	At June 30,		At December 31,
(dollars in millions)	2023		2022
Assets
Prepaid expenses and other	$	2,629	$	2,629
Other assets	2,436		2,475
Total	$	5,065	$	5,104