Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2020

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, "Revenue from Contracts with Customers" ("ASC 606"), but is instead governed by other accounting standards:

	Three Months Ended September 30,			Nine Months Ended September 30,
	2020		2019	2020	2019
	(Dollars in millions)
Total revenue	$	1,971	1,952	5,935	5,828
Adjustments for non-ASC 606 revenue (1)	(234)		(94)	(687)	(288)
Total revenue from contracts with customers	$	1,737	1,858	5,248	5,540

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(1) Includes lease revenue which is 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, 2020 and December 31, 2019:

	September 30, 2020		December 31, 2019
	(Dollars in millions)
Customer receivables (1)	$	766	678
Contract assets	32		32
Contract liabilities	383		423

(1)Reflects gross customer receivables of $803 million and $691 million, net of allowance for doubtful accounts of $37 million and $13 million, at September 30, 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 September 30,
	2020			2019
	(Dollars in millions)
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
Beginning of period balance	$	77	122	73	106
Costs incurred	14		21	13	26
Amortization	(15)		(22)	(12)	(17)
End of period balance	$	76	121	74	115

	Nine Months Ended September 30,
	2020			2019
	(Dollars in millions)
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
Beginning of period balance	$	79	121	64	84
Costs incurred	44		65	42	77
Amortization	(47)		(65)	(32)	(46)
End of period balance	$	76	121	74	115