XML 38 R25.htm IDEA: XBRL DOCUMENT

Revenue Recognition (Tables)

9 Months Ended

Sep. 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 nine months ended September 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 September 30, 2023				Three Months Ended September 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	$	988	(151)	837	956	(153)	803
Nurture	428		(3)	425	464	(4)	460
Harvest	264		—	264	316	—	316
Other	26		—	26	26	—	26
Affiliate Services	57		(57)	—	57	(57)	—
Total revenue	$	1,763	(211)	1,552	1,819	(214)	1,605


	Nine Months Ended September 30, 2023				Nine Months Ended September 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	$	2,947	(465)	2,482	3,022	(518)	2,504
Nurture	1,296		(11)	1,285	1,462	(12)	1,450
Harvest	825		—	825	982	—	982
Other	76		—	76	82	—	82
Affiliate Services	167		(167)	—	170	(170)	—
Total revenue	$	5,311	(643)	4,668	5,718	(700)	5,018

_____________________________________________________________________

(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 September 30, 2023 and December 31, 2022:


	September 30, 2023		December 31, 2022
	(Dollars in millions)
Customer receivables (1)	$	567	515
Contract assets (2)	9		13
Contract liabilities (3)	239		222

_____________________________________________________________________

(1)Reflects gross customer receivables of $580 million and $534 million, net of allowance for credit losses of $13 million and $19 million, at both September 30, 2023 and December 31, 2022. As of September 30, 2023 and December 31, 2022, this amount excludes customer receivables classified as held for sale of $70 million and $76 million, respectively.

(2)As of September 30, 2023 and December 31, 2022, amount excludes contract assets classified as held for sale of $11 million and $16 million, respectively.

(3)As of September 30, 2023 and December 31, 2022, amount excludes contract liabilities classified as held for sale of $47 million and $59 million, respectively.

Capitalized contract cost

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


	Three Months Ended September 30, 2023			Three Months Ended September 30, 2022
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)
Beginning of period balance(1)(2)	$	69	102	78	101
Costs incurred	12		24	16	20
Amortization	(14)		(18)	(14)	(17)
Change in contract costs held for sale	—		—	—	1
End of period balance(5)(6)	$	67	108	80	105


	Nine Months Ended September 30, 2023			Nine Months Ended September 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	39		68	45	63
Amortization	(44)		(52)	(41)	(57)
Change in contract costs held for sale	(4)		(14)	—	—
End of period balance(5)(6)	$	67	108	80	105

______________________________________________________________________

(1)Beginning of period balance for the three months ended September 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 September 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).

(3)Beginning of period balance for the nine months ended September 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 nine months ended September 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 nine months ended September 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 nine months ended September 30, 2022 excludes no acquisition costs and no of fulfillment costs classified as held for sale (related to the Latin American business, sold in the third quarter of 2022).