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Revenue Recognition
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Since the first quarter of 2021, we have categorized our products and services and related revenue among the following categories:
•Compute and Application Services, which include our Edge Cloud services, IT solutions, Unified Communications and Collaboration ("UC&C"), data center, content delivery network ("CDN") and Managed Security services;
•IP and Data Services, which include Ethernet, IP, and VPN data networks, including software-defined wide area networks ("SD WAN") based services, Dynamic Connections and Hyper WAN;
•Fiber Infrastructure Services, which include dark fiber, optical services and equipment;
•Voice and Other, which include Time Division Multiplexing ("TDM") voice, private line and other legacy services; and
•Affiliate Services, which include communications services provided to our affiliates that we also provide to our external customers.
From time to time, we may change the categorization of our products and services.

Disaggregated Revenue by Service Offering

The following tables provide disaggregation of revenue from contracts with customers based on service offering for the years ended December 31, 2021, 2020 and 2019. 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, 2021
Total Revenue
Adjustments for Non-ASC 606 Revenue (1)
Total Revenue from Contracts with Customers
(Dollars in millions)
Compute and Application Services $1,141 (504)637 
IP and Data Services3,555 — 3,555 
Fiber Infrastructure Services 1,612 (220)1,392 
Voice and Other 1,421 (12)1,409 
Affiliate Services223 (223)— 
Total Revenue$7,952 (959)6,993 
Timing of revenue:
Goods transferred at a point in time$13 
Services performed over time6,980 
Total revenue from contracts with customers$6,993 
Year Ended December 31, 2020
Total Revenue
Adjustments for Non-ASC 606 Revenue (1)
Total Revenue from Contracts with Customers
(Dollars in millions)
Compute and Application Services$1,098 (494)604 
IP and Data Services3,522 — 3,522 
Fiber Infrastructure Services1,507 (209)1,298 
Voice and Other1,598 (8)1,590 
Affiliate Services208 (208)— 
Total Revenue$7,933 (919)7,014 
Timing of revenue:
Goods transferred at a point in time$15 
Services performed over time6,999 
Total revenue from contracts with customers$7,014 

Year Ended December 31, 2019
Total Revenue
Adjustments for Non-ASC 606 Revenue (1)
Total Revenue from Contracts with Customers
(Dollars in millions)
Compute and Application Services$1,063 (506)557 
IP and Data Services3,528 — 3,528 
Fiber Infrastructure Services1,392 (198)1,194 
Voice and Other1,610 (9)1,601 
Affiliate Services180 (180)— 
Total Revenue$7,773 (893)6,880 
Timing of revenue:
Goods transferred at a point in time$— 
Services performed over time6,880 
Total revenue from contracts with customers$6,880 
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(1) Includes lease revenue which is not within the scope of ASC 606.
Customer Receivables and Contract Balances

The following table provides balances of customer receivables, contract assets and contract liabilities, net of amounts reclassified as held for sale as of December 31, 2021 and 2020:
December 31, 2021December 31, 2020
(Dollars in millions)
Customer receivables (1) (2)
$640 683 
Contract assets (3)
35 38 
Contract liabilities (4)
247 385 
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(1)Reflects gross customer receivables of $679 million and $728 million, net of allowance for credit losses of $39 million and $45 million, as of December 31, 2021 and 2020, respectively.
(2)As of December 31, 2021, amount excludes customer receivables reclassified as held for sale of $83 million.
(3)As of December 31, 2021, no amounts have been reclassified as held for sale.
(4)As of December 31, 2021, amount excludes contract liabilities reclassified as held for sale of $58 million.

Contract liabilities are consideration we have received from our customers or billed in advance of providing the goods or services promised in the future. We defer recognizing this consideration until we have satisfied the related performance obligation to the customer. Contract liabilities include recurring services billed one month in advance and installation and maintenance charges that are deferred and recognized over the actual or expected contract term, which typically ranges from one to five years depending on the service. Contract liabilities are included within deferred revenue and liabilities held for sale in our consolidated balance sheets. During the years ended December 31, 2021 and 2020, we recognized $182 million and $188 million, respectively, of revenue that was included in contract liabilities of $385 million and $423 million as of January 1, 2021 and 2020, respectively.

Performance Obligations

As of December 31, 2021, our estimated revenue expected to be recognized in the future related to performance obligations associated with existing customer contracts that are partially or wholly unsatisfied is approximately $3.5 billion. We expect to recognize approximately 93% of this revenue through 2024, with the balance recognized thereafter.

These amounts exclude (i) the value of unsatisfied performance obligations for contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed (for example, uncommitted usage or non-recurring charges associated with professional or technical services to be completed), (ii) contracts that are classified as leasing arrangements that are not subject to ASC 606 and (iii) the value of unsatisfied performance obligations for contracts which relate to our divestiture.
Contract Costs

The following tables provide changes in our contract acquisition costs and fulfillment costs for the years ended:
Year Ended December 31, 2021
Acquisition CostsFulfillment Costs
(Dollars in millions)
Beginning of period balance$78 122 
Costs incurred58 90 
Amortization(60)(86)
Reclassified as held for sale (1)
— (27)
End of period balance$76 99 
Year Ended December 31, 2020
Acquisition CostsFulfillment Costs
(Dollars in millions)
Beginning of period balance$79 121 
Costs incurred61 88 
Amortization(62)(87)
End of period balance$78 122 
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(1)     Represents the amounts reclassified as held for sale related to our planned divestiture. See Note 2—Planned Divestiture of the Latin American Business.

Acquisition costs include commission fees paid to employees as a result of obtaining contracts. Fulfillment costs include third party and internal costs associated with the provision, installation and activation of services to customers, including labor and materials consumed for these activities.

Deferred acquisition and fulfillment costs are amortized based on the transfer of services on a straight-line basis over the average expected contract life of approximately 33 months for our business customers. Amortized fulfillment costs are included in cost of services and products and amortized acquisition costs are included in selling, general and administrative expenses in our consolidated statements of operations. The amount of these deferred costs that are anticipated to be amortized in the next 12 months are included in other current assets on our consolidated balance sheets. The amount of deferred costs expected to be amortized beyond 12 months is included in other non-current assets on our consolidated balance sheets. Deferred acquisition and fulfillment costs are assessed for impairment on an annual basis.