Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Schedule of Revenue

The following table provides the amount of revenue that is not subject to ASC 606, but is instead governed by other accounting standards:

	Three Months Ended June 30,					Six Months Ended June 30,
	2019			2018		2019		2018
	(Dollars in millions)
Total revenue	$	5,578		5,902		11,225		11,847
Adjustments for non-ASC 606 revenue (1)	(356		)	(325	)	(714	)	(636	)
Total revenue from contracts with customers	$	5,222		5,577		10,511		11,211

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(1) Includes regulatory revenue, lease revenue, sublease rental income, revenue from fiber capacity lease arrangements and failed sale leaseback income, which are 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 June 30, 2019 and December 31, 2018:

	June 30, 2019		December 31, 2018
	(Dollars in millions)
Customer receivables(1)	$	2,379	2,346
Contract assets	141		140
Contract liabilities	1,000		860

⁽¹⁾ Gross customer receivables of $2.5 billion and $2.5 billion, net of allowance for doubtful accounts of $128 million and $132 million, at June 30, 2019 and December 31, 2018, respectively.

The following table provides information about revenue recognized for the three and six months ended June 30, 2019 and 2018:

	Three Months Ended June 30,			Six Months Ended June 30,
	2019		2018	2019	2018
	(Dollars in millions)
Revenue recognized in the period from:
Amounts included in contract liability at the beginning of the period (January 1, 2019 and 2018, respectively)	$	44	50	534	573
Performance obligations satisfied in previous periods	—		—	—	—

Capitalized Contract Cost

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

	Three Months Ended June 30, 2019					Three Months Ended June 30, 2018
	(Dollars in millions)
	Acquisition Costs			Fulfillment Costs		Acquisition Costs		Fulfillment Costs
Beginning of period balance	$	329		198		281		150
Costs incurred	43			44		47		29
Amortization	(51		)	(35	)	(41	)	(18	)
End of period balance	$	321		207		287		161

	Six Months Ended June 30, 2019					Six Months Ended June 30, 2018
	(Dollars in millions)
	Acquisition Costs			Fulfillment Costs		Acquisition Costs		Fulfillment Costs
Beginning of period balance	$	322		187		268		133
Costs incurred	100			78		99		58
Amortization	(101		)	(58	)	(80	)	(30	)
End of period balance	$	321		207		287		161