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Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [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, 2022, 2021 and 2020. It also shows the amount of revenue that is not subject to ASC 606, but is instead governed by other accounting standards. The amounts in the tables below include the Latin American business revenues prior to it being sold on August 1, 2022:
Year Ended December 31, 2022
Total Revenue
Adjustments for Non-ASC 606 Revenue (1)
Total Revenue from Contracts with Customers
(Dollars in millions)
Compute and Application Services $1,025 (445)580 
IP and Data Services3,405 — 3,405 
Fiber Infrastructure Services 1,560 (221)1,339 
Voice and Other 1,276 (14)1,262 
Affiliate Services227 (227)— 
Total Revenue$7,493 (907)6,586 
Timing of revenue:
Goods transferred at a point in time$4 
Services performed over time6,582 
Total revenue from contracts with customers$6,586 
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 Services1,612 (220)1,392 
Voice and Other1,421 (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 
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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 classified as held for sale as of December 31, 2022 and 2021:
December 31, 2022December 31, 2021
(Dollars in millions)
Customer receivables (1)
$515 640 
Contract assets (2)
13 35 
Contract liabilities (3)
222 247 
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(1)Reflects gross customer receivables of $534 million and $679 million, net of allowance for credit losses of $19 million and $39 million, as of December 31, 2022 and 2021, respectively. These amounts exclude customer receivables, net, classified as held for sale of $76 million at December 31, 2022 (related to the EMEA business) and $83 million at December 31, 2021 (related to the Latin American business).
(2)These amounts exclude contract assets classified as held for sale of $16 million at December 31, 2022 (related to the EMEA business). There were no contract assets classified as held for sale related to the Latin American business at December 31, 2021.
(3)These amounts exclude contract liabilities classified as held for sale of $59 million at December 31, 2022 (related to the EMEA business) and $58 million at December 31, 2021 (related to the Latin American business).
Capitalized contract cost
The following tables provide changes in our contract acquisition costs and fulfillment costs for the years ended:
Year Ended December 31, 2022
Acquisition CostsFulfillment Costs
(Dollars in millions)
Beginning of period balance$76 99 
Costs incurred61 83 
Amortization(55)(76)
Classified as held for sale (1)
(6)— 
End of period balance$76 106 
Year Ended December 31, 2021
Acquisition CostsFulfillment Costs
(Dollars in millions)
Beginning of period balance$78 122 
Costs incurred58 90 
Amortization(60)(86)
Classified as held for sale (1)
— (27)
End of period balance$76 99 
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(1)     Represents the amounts classified as held for sale related to our planned divestiture. See Note 2—Completed Divestiture of the Latin American Business and Planned Divestiture of European, Middle Eastern and African Business.