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Revenues
6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
The following table presents the Company’s revenues disaggregated by revenue source (in millions).
Three Months Ended June 30, 2022
StudiosNetworksDTCCorporateTotal
Revenues:
Advertising$10 $2,624 $96 $(9)$2,721 
Distribution2,841 1,993 — 4,838 
Content2,636 220 132 (924)2,064 
Other146 57 (3)204 
Total$2,796 $5,742 $2,225 $(936)$9,827 
Three Months Ended June 30, 2021
StudiosNetworksDTCCorporateTotal
Revenues:
Advertising$— $1,601 $33 $— $1,634 
Distribution— 1,132 180 — 1,312 
Content96 — 100 
Other— 15 — 16 
Total$$2,844 $216 $— $3,062 
Six Months Ended June 30, 2022
StudiosNetworksDTCCorporateTotal
Revenues:
Advertising$10 $4,054 $142 $(9)$4,197 
Distribution3,961 2,225 — 6,190 
Content2,641 536 134 (924)2,387 
Other146 64 (3)212 
Total$2,801 $8,615 $2,506 $(936)$12,986 
Six Months Ended June 30, 2021
StudiosNetworksDTCCorporateTotal
Revenues:
Advertising$— $2,993 $50 $— $3,043 
Distribution— 2,281 289 — 2,570 
Content202 — 212 
Other— 28 — 29 
Total$$5,504 $343 $— $5,854 
Reserves for Credit Losses
Reserves for accounts receivable reflect expected credit losses, which are estimated based on historical experience, as well as current and expected economic conditions and industry trends. The allowance for credit losses was $138 million at June 30, 2022 and $54 million at December 31, 2021. The increase was primarily attributable to the acquisition of existing WM receivables in the Merger with WM. The corresponding expense for the expected credit losses is reflected in selling, general and administrative expenses.
Contract Assets and Liabilities
A contract asset is recorded when revenue is recognized in advance of the Company's right to bill and receive consideration and that right is conditioned upon something other than the passage of time. A contract liability, such as deferred revenue, is recorded when the Company has recorded billings in conjunction with its contractual right or when cash is received in advance of the Company's performance.
The following table presents contract assets and liabilities on the consolidated balance sheets (in millions).
CategoryBalance Sheet LocationJune 30, 2022December 31, 2021
Contract AssetsPrepaid expenses and other current assets$12 $— 
Contract AssetsOther noncurrent assets26 — 
Contract LiabilitiesDeferred revenues1,663 478 
Contract LiabilitiesOther noncurrent liabilities242 95 
The change in deferred revenue for the six months ended June 30, 2022 primarily reflects an increase of $1,476 million related to the Merger and cash payments received for which the performance obligation was not satisfied prior to the end of the period, partially offset by $347 million of revenues recognized that were included in the deferred revenue balance at December 31, 2021. Revenue recognized for the six months ended June 30, 2021 related to the deferred revenue balance at December 31, 2020 was $162 million.
Transaction Price Allocated to Remaining Performance Obligations
Most of the Company's distribution contracts are licenses of functional intellectual property where revenue is derived from royalty-based arrangements, for which the guidance allows the application of a practical expedient to record revenues as a function of royalties earned to date instead of estimating incremental royalty contract revenue. Accordingly, in these instances revenue is recognized based upon the royalties earned to date. However, there are certain other distribution arrangements that are fixed price or contain minimum guarantees that extend beyond one year. The Company recognizes revenue for fixed fee distribution contracts on a monthly basis based on minimum monthly fees; by calculating one twelfth of annual license fees specified in its distribution contracts; or based on the pro-rata fees earned calculated on the license fees specified in the distribution contract. The transaction price allocated to remaining performance obligations within these fixed price or minimum guarantee distribution revenue contracts was $2.7 billion as of June 30, 2022 and is expected to be recognized over the next seven years.
The Company's content licensing contracts and sports sublicensing deals are licenses of functional intellectual property. The transaction price allocated to remaining performance obligations on these contracts was $5.2 billion as of June 30, 2022 and is expected to be recognized over the next seven years.
The Company's brand licensing contracts are licenses of symbolic intellectual property. The transaction price allocated to remaining performance obligations on these contracts was $2.3 billion as of June 30, 2022 and is expected to be recognized over the next 21 years.
The Company's advertising contracts are principally generated from the sale of advertising campaigns comprised of multiple commercial units. In contracts with guaranteed impressions, we have identified the overall advertising campaign as the performance obligation to be satisfied over time, and impressions delivered against the satisfaction of our guarantee as the measure of progress. Certain of these arrangements extend beyond one year. The transaction price allocated to remaining performance obligations on these long-term contracts was $595 million as of June 30, 2022 and is expected to be recognized over the next three years.
The value of unsatisfied performance obligations disclosed above does not include: (i) contracts involving variable consideration for which revenues are recognized in accordance with the sales or usage-based royalty exception, and (ii) contracts with an original expected length of one year or less, such as most advertising contracts; however for content licensing revenues, including revenues associated with the licensing of theatrical and television product for television and streaming services, the Company has included all contracts regardless of duration.