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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

The following tables provide disaggregation of revenue from contracts with customers based on service offering for the three and six months ended June 30, 2023 and 2022. 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 revenue for the Latin American business prior to it being sold on August 1, 2022. See Note 2—Completed Divestiture of the Latin American Business and Planned Divestiture of European, Middle Eastern and African Business in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on these divestitures.


	Three Months Ended June 30, 2023				Three Months Ended June 30, 2022
	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)
Grow	$	986	(152)	834	1,042	(183)	859
Nurture	429		(5)	424	495	(4)	491
Harvest	271		—	271	330	—	330
Other	25		—	25	29	—	29
Affiliate Services	53		(53)	—	57	(57)	—
Total revenue	$	1,764	(210)	1,554	1,953	(244)	1,709


	Six Months Ended June 30, 2023				Six Months Ended June 30, 2022
	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)
Grow	$	1,959	(314)	1,645	2,066	(365)	1,701
Nurture	868		(8)	860	998	(8)	990
Harvest	561		—	561	666	—	666
Other	50		—	50	56	—	56
Affiliate Services	110		(110)	—	113	(113)	—
Total revenue	$	3,548	(432)	3,116	3,899	(486)	3,413

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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 June 30, 2023 and December 31, 2022:


	June 30, 2023		December 31, 2022
	(Dollars in millions)
Customer receivables (1)	$	516	515
Contract assets (2)	8		13
Contract liabilities (3)	222		222

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(1)Reflects gross customer receivables of $533 million and $534 million, net of allowance for credit losses of $17 million and $19 million, at both June 30, 2023 and December 31, 2022. As of June 30, 2023 and December 31, 2022, this amount excludes customer receivables classified as held for sale of $77 million and $76 million, respectively.

(2)As of June 30, 2023 and December 31, 2022, amount excludes contract assets classified as held for sale of $12 million and $16 million, respectively.

(3)As of June 30, 2023 and December 31, 2022, amount excludes contract liabilities classified as held for sale of $62 million and $59 million, respectively.

Capitalized contract cost

The following tables provide changes in our contract acquisition costs and fulfillment costs:


	Three Months Ended June 30, 2023			Three Months Ended June 30, 2022
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)
Beginning of period balance(1)(2)	$	74	99	77	100
Costs incurred	10		21	14	22
Amortization	(15)		(18)	(13)	(20)
Change in contract costs held for sale	—		—	—	(1)
End of period balance(5)(6)	$	69	102	78	101


	Six Months Ended June 30, 2023			Six Months Ended June 30, 2022
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)
Beginning of period balance(3)(4)	$	76	106	76	99
Costs incurred	27		44	29	43
Amortization	(30)		(34)	(27)	(40)
Change in contract costs held for sale	(4)		(14)	—	(1)
End of period balance(5)(6)	$	69	102	78	101

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(1)Beginning of period balance for the three months ended June 30, 2023 excludes $10 million of acquisition costs and $14 million of fulfillment costs classified as held for sale related to the EMEA business.

(2)Beginning of period balance for the three months ended June 30, 2022 excludes no acquisition costs and $27 million of fulfillment costs classified as held for sale (related to the Latin American business, sold in the third quarter of 2022).

(3)Beginning of period balance for the six months ended June 30, 2023 excludes $6 million of acquisition costs and no fulfillment costs classified as held for sale related to the EMEA business.

(4)Beginning of period balance for the six months ended June 30, 2022 excludes no acquisition costs and $27 million of fulfillment costs classified as held for sale (related to the Latin American business, sold in the third quarter of 2022).

(5)End of period balance for the three and six months ended June 30, 2023 excludes $10 million of acquisition costs and $14 million of fulfillment costs classified as held for sale related to the EMEA business.

(6)End of period balance for the three and six months ended June 30, 2022 excludes no acquisition costs and $28 million of fulfillment costs classified as held for sale (related to the Latin American business, sold in the third quarter of 2022).