Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2020

Revenues [Abstract]

Disaggregation of revenue

The following tables provide disaggregation of revenue from contracts with customers based on service offering for the years ended December 31, 2020, 2019 and 2018. It also shows the amount of revenue that is not subject to ASC 606, but is instead governed by other accounting standards.

	Year Ended December 31, 2020
	Total Revenue		Adjustments for Non-ASC 606 Revenue (6)	Total Revenue from Contracts with Customers
	(Dollars in millions)
IP and Data Services (1)	$	3,587	—	3,587
Transport and Infrastructure (2)	2,615		(703)	1,912
Voice and Collaboration (3)	1,423		—	1,423
Other (4)	100		(8)	92
Affiliate Services (5)	208		(208)	—
Total Revenue	$	7,933	(919)	7,014
Timing of revenue:
Goods transferred at a point in time				$	15
Services performed over time				6,999
Total revenue from contracts with customers				$	7,014

	Year Ended December 31, 2019
	Total Revenue		Adjustments for Non-ASC 606 Revenue (6)	Total Revenue from Contracts with Customers
	(Dollars in millions)
IP and Data Services (1)	$	3,655	—	3,655
Transport and Infrastructure (2)	2,544		(704)	1,840
Voice and Collaboration (3)	1,385		—	1,385
Other (4)	9		(9)	—
Affiliate Services (5)	180		(180)	—
Total Revenue	$	7,773	(893)	6,880
Timing of revenue:
Goods transferred at a point in time				$	—
Services performed over time				6,880
Total revenue from contracts with customers				$	6,880

	Year Ended December 31, 2018
	Total Revenue		Adjustments for Non-ASC 606 Revenue (6)	Total Revenue from Contracts with Customers
	(Dollars in millions)
IP and Data Services (1)	$	3,728	—	3,728
Transport and Infrastructure (2)	2,591		(189)	2,402
Voice and Collaboration (3)	1,413		—	1,413
Other (4)	—		(3)	(3)
Affiliate Services (5)	107		(107)	—
Total Revenue	$	7,839	(299)	7,540
Timing of revenue:
Goods transferred at a point in time				$	—
Services performed over time				7,540
Total revenue from contracts with customers				$	7,540

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(1)Includes primarily VPN data network, IP, Ethernet, video and ancillary revenue.

(2)Includes primarily wavelength, colocation and data center services, dark fiber, private line and professional services revenue.

(3)Includes voice, Voice Over IP ("VoIP"), Collaboration.

(4)Includes sublease rental income and IT services and managed services revenue.

(5)Includes telecommunications and data services we bill to our affiliates.

(6)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 December 31, 2020 and 2019:

	December 31, 2020		December 31, 2019
	(Dollars in millions)
Customer receivables (1)	$	683	678
Contract assets	38		32
Contract liabilities	385		423

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(1)Gross customer receivables of $728 million and $691 million, net of allowance for credit losses of $45 million and $13 million, as of December 31, 2020 and 2019, respectively.

Capitalized contract cost

The following tables provide changes in our contract acquisition costs and fulfillment costs for the years ended:

	Year Ended December 31, 2020
	Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	79	121
Costs incurred	61		88
Amortization	(62)		(87)
End of period balance	$	78	122

	Year Ended December 31, 2019
	Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	64	84
Costs incurred	60		103
Amortization	(45)		(66)
End of period balance	$	79	121