Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue from External Customers by Products and Services

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	$	2,014		2,052		$	4,060		$	4,139
Adjustments for non-ASC 606 revenue (1)	(89		)	(80	)	(194		)	(149		)
Total revenue from contracts with customers	$	1,925		1,972		$	3,866		$	3,990

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Includes 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)	$	771	712
Contract assets	28		19
Contract liabilities	404		393

(1)

Gross customer receivables of $785 million and $723 million, net of allowance for doubtful accounts of $14 million and $11 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)	24	16	119	113
Performance obligations satisfied in previous periods	—	—	—	—

Capitalized Contract Cost

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

	Three Months Ended June 30,
	2019					2018
	(Dollars in millions)
	Acquisition Costs			Fulfillment Costs		Acquisition Costs		Fulfillment Costs
Beginning of period balance	$	74		97		26		35
Costs incurred	11			25		11		24
Amortization	(12		)	(16	)	(3	)	(7	)
End of period balance	$	73		106		34		52

	Six Months Ended June 30,
	2019					2018
	(Dollars in millions)
	Acquisition Costs			Fulfillment Costs		Acquisition Costs		Fulfillment Costs
Beginning of period balance	$	64		84		13		14
Costs incurred	29			51		26		47
Amortization	(20		)	(29	)	(5	)	(9	)
End of period balance	$	73		106		34		52