Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024 and 2023. It also provides 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 EMEA business revenue prior to it being sold on November 1, 2023. See Note 2—Divestitures of the Latin American and EMEA Businesses in our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information on these divestitures.


	Three Months Ended March 31, 2024				Three Months Ended March 31, 2023
	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	$	921	(125)	796	975	(162)	813
Nurture	385		(4)	381	438	(3)	435
Harvest	195		—	195	260	—	260
Other	30		—	30	54	—	54
Affiliate Services	59		(59)	—	57	(57)	—
Total revenue	$	1,590	(188)	1,402	1,784	(222)	1,562

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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 as of March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
	(Dollars in millions)
Customer receivables (1)	$	570	544
Contract assets	8		8
Contract liabilities	237		222

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(1)Reflects gross customer receivables of $581 million and $557 million, net of allowance for credit losses of $11 million and $13 million, at March 31, 2024 and December 31, 2023, respectively.

Capitalized contract cost

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


	Three Months Ended March 31, 2024			Three Months Ended March 31, 2023
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)
Beginning of period balance(1)	$	70	97	76	106
Costs incurred	12		17	17	23
Amortization	(12)		(15)	(15)	(16)
Change in contract costs held for sale	—		—	(4)	(14)
End of period balance(2)	$	70	99	74	99

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(1)Beginning of period balance for the three months ended March 31, 2023 excludes $6 million of acquisition costs and no fulfillment costs classified as held for sale related to the EMEA business.

(2)End of period balance for the three months ended March 31, 2023 excludes $10 million of acquisition costs and $14 million fulfillment costs classified as held for sale related to the EMEA business.