Residential and business subscription services revenue consists primarily of monthly recurring charges for HSD, Video, and Telephony services, including charges for equipment rentals and other regulatory fees, and non-recurring charges for optional services, such as pay-per-view, video-on-demand, and other events provided to the customer. Monthly charges for residential and business subscription services are billed in advance and recognized as revenue over the period of time the associated services are provided to the customer. Charges for optional services are generally billed in arrears and revenue is recognized at the point in time when the services are provided to the customer.

The majority of the Company’s residential customers have entered into month-to-month contracts. Whereas business customers have entered into either month-to-month contracts or non-cancellable contracts for subscription services with an average contract term of 30 months.

The Company is required to pay certain cable franchising authorities an amount based on the percentage of gross revenue derived from video services. The Company generally passes these fees and other similar regulatory and ancillary fees on to the customer. Revenues from regulatory and other ancillary fees passed on to the customer are reported with the associated service revenue and the corresponding costs are reported as an operating expense.

Bundled Subscription Services

The Company often markets multiple subscription services as part of a bundled arrangement that may include a discount. When customers have entered into a bundled service arrangement, the total transaction price for the bundled arrangement is allocated between the separate services included in the bundle based on their relative stand-alone selling prices. The allocation of the transaction price in bundled services requires judgment, particularly in determining the stand-alone selling

prices for the separate services included in the bundle. The stand-alone selling price for the majority of services are determined based on the prices at which the Company separately sells the service. For services sold on an infrequent basis and for a wide range of prices, the Company estimates stand-alone selling prices using the adjusted market assessment approach, which considers the prices of competitors for similar services.

Other Business Services Revenue

Other business services revenue consists primarily of monthly recurring charges for session initiated protocol, web hosting, metro ethernet, wireless backhaul, broadband carrier, and cloud infrastructure services provided to business customers. Other business services revenue also includes recurring charges for wholesale and colocation services. Monthly charges for other business services are generally billed in advance and recognized as revenue when the associated services are provided to the customer.

Other Revenue

Other revenue consists primarily of revenue from line assurance warranty services provided to residential and business customers and revenue from advertising placement. Monthly charges for line assurance warranty services are generally billed in advance and recognized as revenue over the period of time the warranty services are provided to the customer. Charges for advertising placement are generally billed in arrears and recognized as revenue at the point in time when the advertising is distributed.

Government Assistance

The Company adopted ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance prospectively as of January 1, 2022. The Company receives government assistance in the form of cash from multiple funds distributed by the National Exchange Carrier Association (“NECA”). Certain of the funds received are recorded as revenue upon receipt in the consolidated income statement. Whereas assistance received from other funds, specifically the Connect America Fund Broadband Loop Support (“CAF BLS”) has certain network construction requirements which are accounted for by utilizing the capital approach under a grant model by analogy in accordance with International Accounting Standard 20, Accounting for Government Grants and Disclosure of Government Assistance (“IAS 20”).

The Company receives government assistance from the CAF BLS for certain network build-out construction projects. The Company accounts for the assistance received as a reduction to property, plant and equipment, as the primary conditions for receipt of these grants are to build-out the broadband network. If the assistance received is greater than the cost of the asset constructed, the excess is recognized as revenue upon completion of the project build-out. For the years ended December 31, 2022, 2021 and 2020, the Company recognized $3.4 million, $3.3 million and nil, respectively, in HSD residential subscription revenue related to excess funding received over the cost of construction for network build-out projects completed. The Company will continue to receive funding related to these programs through December 31, 2028 and will continue to recognize this funding as revenue as all build-out obligations were completed and accepted as of December 31, 2022.

As of December 31, 2021, the Company recorded $1.2 million of funding received as a reduction to property, plant and equipment, and $1.4 million of deferred revenue related to in-process network build-out construction projects subject to CAF BLS.

Revenue by Service Offering

The following table presents revenue by service offering:


	Year ended December 31,
	2022		2021		2020

	(in millions)
Residential subscription
HSD(1)	$	339.9	$	329.0	$	294.5
Video		173.5		204.1		236.4
Telephony		24.3		28.5		35.6
Total Residential subscription	$	537.7	$	561.6	$	566.5
Business subscription
HSD	$	72.2	$	70.1	$	64.5
Video		11.7		11.4		11.4
Telephony		27.1		28.9		29.7
Total business subscription	$	111.0	$	110.4	$	105.6
Total subscription services revenue		648.7		672.0		672.1
Other business services revenue(2)		21.2		22.3		23.4
Other revenue		35.0		31.4		34.7
Total revenue	$	704.9	$	725.7	$	730.2

(1)	Includes revenue recognized of $3.4 million, $3.3 million and nil related to the CAF BLS for the years ended December 31, 2022, 2021 and 2020, respectively.

(2)	Includes wholesale and colocation lease revenue of $19.1 million for the year ended December 31, 2022 and $19.4 million for each of the years ended December 31, 2021 and 2020.

Costs of Obtaining Contracts with Customers

The Company recognizes an asset for incremental costs of obtaining contracts with customers when it expects to recover those costs. Costs which would be incurred regardless of whether a contract is obtained are expensed as they are incurred. Costs of obtaining contracts with customers are amortized over the expected period of benefit, which generally ranges from three to four years for residential customers and five to six years for business customers. The current portion and the non-current portion of costs of obtaining contracts with customers are included in prepaid expenses and other and other noncurrent assets, respectively, in the Company’s consolidated balance sheets. Amortization of costs of obtaining contracts with customers is included in selling, general and administrative expense in the Company’s consolidated statements of operations.

The following table summarizes the activity of costs of obtaining contracts with customers:


	2022		2021		2020

	(in millions)
Balance at beginning of period	$	37.3	$	31.8	$	20.9
Deferral		16.6		15.5		17.4
Amortization		(14.4)		(10.0)		(6.5)
Balance at end of period	$	39.5	$	37.3	$	31.8

The following table presents the current and non-current costs of obtaining contracts with customers as of the end of the corresponding periods:


	December 31, 2022		December 31, 2021

	(in millions)
Current costs of obtaining contracts with customers	$	15.6	$	14.1
Non-current costs of obtaining contracts with customers		23.9		23.2
Total costs of obtaining contracts with customers	$	39.5	$	37.3

Contract Liabilities

Monthly charges for residential and business subscription services are billed in advance and recorded as unearned service revenue. Residential and business customers may be charged non-recurring upfront fees associated with installation and other administrative activities. Charges for upfront fees associated with installation and other administrative activities are initially recorded as unearned service revenue and recognized as revenue over the expected period of benefit for residential customers, which has been estimated as five months, and over the contract term for business customers, which has been estimated as 30 months. The Company has estimated the expected period of benefit for residential customers based on consideration of quantitative and qualitative factors including the average installation fee charged, the average monthly revenue per customer, and customer behavior. The current portion and the non-current portion of contract liabilities are included in current portion of unearned service revenue and other non-current liabilities, respectively, in the Company’s consolidated balance sheets.

The following tables present the activity of current and non-current contract liabilities:


	2022		2021		2020

	(in millions)
Balance at beginning of period	$	3.3	$	2.9	$	2.8
Deferral		11.9		12.4		8.8
Revenue recognized		(12.5)		(12.0)		(8.7)
Balance at end of period	$	2.7	$	3.3	$	2.9

The following table presents the current and non-current portion of contract liabilities as of the end of the corresponding periods:


	December 31, 2022		December 31, 2021

	(in millions)
Current contract liabilities	$	2.4	$	2.9
Non-current contract liabilities		0.3		0.4
Total contract liabilities	$	2.7	$	3.3

Unsatisfied Performance Obligations

Revenue from month-to-month residential subscription service contracts have historically represented a significant portion of the Company’s revenue and the Company expects that this will continue to be the case in future periods. All residential subscription service performance obligations will be satisfied within one year.

A summary of expected business subscription and other business services revenue to be recognized in future periods related to performance obligations which have not been satisfied or are partially unsatisfied as of December 31, 2022 is set forth in the table below:


	2023		2024		2025		Thereafter		Total

	(in millions)
Subscription services	$	45.3		27.3	$	10.8	$	2.6	$	86.0
Other business services		3.1		1.8		0.6		0.1		5.6
Total expected revenue	$	48.4	$	29.1	$	11.4	$	2.7	$	91.6

Provision for Doubtful Accounts

The provision for doubtful accounts and the allowance for doubtful accounts are based on the aging of the individual receivables, historical trends and current and anticipated future economic conditions. The Company manages credit risk by disconnecting services to customers who are delinquent, generally after 100 days of delinquency. The individual receivables are written-off after all reasonable efforts to collect the funds have been made. Actual write-offs may differ from the amounts reserved.

The following table presents the change in the allowance for doubtful accounts for trade accounts receivable:


	Year ended December 31,
	2022		2021		2020

	(in millions)
Balance at beginning of period	$	4.3	$	6.7	$	6.4
Provision charged to expense(1)		6.0		8.3		11.6
Accounts written off, net of recoveries		(6.0)		(10.7)		(11.3)
Balance at end of period	$	4.3	$	4.3	$	6.7

(1)	The Company released $1.6 million of reserves established in 2020 related to COVID-19 during the year ended December 31, 2022. The Company did not release such reserves during the years ended December 31, 2021 and 2020.