Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

The following table provides disaggregation of revenue from contracts with customers based on service offering for the three months ended March 31, 2022 and 2021. It also shows the amount of revenue that is not subject to ASC 606, but is instead governed by other accounting standards:


	Three Months Ended March 31, 2022				Three Months Ended March 31, 2021
	Total Revenue		Adjustments for Non-ASC 606 Revenue(1)	Total Revenue from Contracts with Customers	Total Revenue	Adjustments for Non-ASC 606 Revenue(1)	Total Revenue from Contracts with Customers
	(Dollars in millions)
Compute and Application Services	$	277	(128)	149	280	(127)	153
IP and Data Services	886		—	886	881	—	881
Fiber Infrastructure Services	391		(54)	337	397	(53)	344
Voice and Other	336		(4)	332	376	(2)	374
Affiliate Services	56		(56)	—	55	(55)	—
Total revenue	$	1,946	(242)	1,704	1,989	(237)	1,752

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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, net of amounts reclassified as held for sale as of March 31, 2022 and December 31, 2021:


	March 31, 2022		December 31, 2021
	(Dollars in millions)
Customer receivables (1)	$	548	640
Contract assets (2)	34		35
Contract liabilities (3)	236		247

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(1)Reflects gross customer receivables of $584 million and $679 million, net of allowance for credit losses of $36 million and $39 million, at March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022 and December 31, 2021, these amounts exclude customer receivables reclassified as held for sale of $93 million and $83 million respectively.

(2)As of March 31, 2022 and December 31, 2021, no amounts have been reclassified as held for sale.

(3)As of March 31, 2022 and December 31, 2021, amounts exclude contract liabilities reclassified as held for sale of $59 million and $58 million respectively.

Capitalized contract cost

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


	Three Months Ended March 31, 2022			Three Months Ended March 31, 2021
	Acquisition Costs		Fulfillment Costs (1)	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	76	99	78	122
Costs incurred	15		21	14	23
Amortization	(14)		(20)	(17)	(22)

End of period balance	$	77	100	75	123

(1)Both the beginning and ending balances for the three months ended March 31, 2022 excluded fulfillment costs reclassified as held for sale of $27 million.