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Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from external customers by products and services

The following tables provide total revenue by segment, sales channel and product category. They also provide the amount of revenue that is not subject to ASC 606, "Revenue from Contracts with Customers" ("ASC 606"), but is instead governed by other accounting standards:


	Year Ended December 31, 2021
	Total Revenue		Adjustments for Non-ASC 606 Revenue (1)	Total Revenue from Contracts with Customers
	(Dollars in millions)
Business Segment by Sales Channel and Product Category
International and Global Accounts ("IGAM")
Compute and Application Services	$	715	(280)	435
IP and Data Services	1,708		—	1,708
Fiber Infrastructure	886		(129)	757
Voice and Other	744		—	744
Total IGAM Revenue	4,053		(409)	3,644

Large Enterprise
Compute and Application Services	698		(63)	635
IP and Data Services	1,554		—	1,554
Fiber Infrastructure	521		(50)	471
Voice and Other	949		—	949
Total Large Enterprise Revenue	3,722		(113)	3,609

Mid-Market Enterprise
Compute and Application Services	139		(31)	108
IP and Data Services	1,754		(5)	1,749
Fiber Infrastructure	218		(8)	210
Voice and Other	618		—	618
Total Mid-Market Enterprise Revenue	2,729		(44)	2,685

Wholesale
Compute and Application Services	189		(159)	30
IP and Data Services	1,196		—	1,196
Fiber Infrastructure	623		(118)	505
Voice and Other	1,607		(252)	1,355
Total Wholesale Revenue	3,615		(529)	3,086

Business Segment by Product Category
Compute and Application Services	1,741		(533)	1,208
IP and Data Services	6,212		(5)	6,207
Fiber Infrastructure	2,248		(305)	1,943
Voice and Other	3,918		(252)	3,666
Total Business Segment Revenue	14,119		(1,095)	13,024

Mass Markets Segment by Product Category
Consumer Broadband	2,875		(211)	2,664
SBG Broadband	156		(16)	140
Voice and Other	2,047		(80)	1,967
CAF II	490		(490)	—
Total Mass Markets Revenue	5,568		(797)	4,771

Total Revenue	$	19,687	(1,892)	17,795

Timing of revenue
Goods and services transferred at a point in time				$	138
Services performed over time				17,657
Total revenue from contracts with customers				$	17,795


	Year Ended December 31, 2020
	Total Revenue		Adjustments for Non-ASC 606 Revenue (1)	Total Revenue from Contracts with Customers
	(Dollars in millions)
Business Segment by Sales Channel and Product Category
International and Global Accounts ("IGAM")
Compute and Application Services	$	772	(265)	507
IP and Data Services	1,731		—	1,731
Fiber Infrastructure	822		(110)	712
Voice and Other	793		—	793
Total IGAM Revenue	4,118		(375)	3,743

Large Enterprise
Compute and Application Services	663		(82)	581
IP and Data Services	1,588		(2)	1,586
Fiber Infrastructure	590		(46)	544
Voice and Other	1,074		(2)	1,072
Total Large Enterprise Revenue	3,915		(132)	3,783

Mid-Market Enterprise
Compute and Application Services	137		(16)	121
IP and Data Services	1,845		(6)	1,839
Fiber Infrastructure	218		(9)	209
Voice and Other	769		—	769
Total Mid-Market Enterprise Revenue	2,969		(31)	2,938

Wholesale
Compute and Application Services	183		(161)	22
IP and Data Services	1,249		—	1,249
Fiber Infrastructure	618		(121)	497
Voice and Other	1,765		(258)	1,507
Total Wholesale Revenue	3,815		(540)	3,275

Business Segment by Product Category
Compute and Application Services	1,755		(524)	1,231
IP and Data Services	6,413		(8)	6,405
Fiber Infrastructure	2,248		(286)	1,962
Voice and Other	4,401		(260)	4,141
Total Business Segment Revenue	14,817		(1,078)	13,739

Mass Markets Segment by Product Category
Consumer Broadband	2,909		(221)	2,688
SBG Broadband	153		(15)	138
Voice and Other	2,341		(109)	2,232
CAF II	492		(492)	—
Total Mass Markets Revenue	5,895		(837)	5,058

Total Revenue	$	20,712	(1,915)	18,797

Timing of revenue
Goods and services transferred at a point in time				$	250
Services performed over time				18,547
Total revenue from contracts with customers				$	18,797


	Year Ended December 31, 2019
	Total Revenue		Adjustments for Non-ASC 606 Revenue (1)	Total Revenue from Contracts with Customers
	(Dollars in millions)
Business Segment by Sales Channel and Product Category
International and Global Accounts ("IGAM")
Compute and Application Services	$	790	(265)	525
IP and Data Services	1,764		—	1,764
Fiber Infrastructure	785		(99)	686
Voice and Other	833		—	833
Total IGAM Revenue	4,172		(364)	3,808

Large Enterprise
Compute and Application Services	610		(89)	521
IP and Data Services	1,589		—	1,589
Fiber Infrastructure	524		(44)	480
Voice and Other	1,113		(1)	1,112
Total Large Enterprise Revenue	3,836		(134)	3,702

Mid-Market Enterprise
Compute and Application Services	147		(11)	136
IP and Data Services	1,894		—	1,894
Fiber Infrastructure	219		(20)	199
Voice and Other	892		(1)	891
Total Mid-Market Enterprise Revenue	3,152		(32)	3,120

Wholesale
Compute and Application Services	188		(168)	20
IP and Data Services	1,319		—	1,319
Fiber Infrastructure	629		(122)	507
Voice and Other	1,943		(279)	1,664
Total Wholesale Revenue	4,079		(569)	3,510

Business Segment by Product Category
Compute and Application Services	1,735		(533)	1,202
IP and Data Services	6,566		—	6,566
Fiber Infrastructure	2,157		(285)	1,872
Voice and Other	4,781		(281)	4,500
Total Business Segment Revenue	15,239		(1,099)	14,140

Mass Markets Segment by Product Category
Consumer Broadband	2,876		(215)	2,661
SBG Broadband	163		(4)	159
Voice and Other	2,688		(143)	2,545
CAF II	492		(492)	—
Total Mass Markets Revenue	6,219		(854)	5,365

Total Revenue	$	21,458	(1,953)	19,505

Timing of revenue
Goods and services transferred at a point in time				$	221
Services performed over time				19,284
Total revenue from contracts with customers				$	19,505

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(1)Includes regulatory revenue and lease revenue 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 reclassified as held for sale, as of December 31, 2021 and December 31, 2020:


	December 31, 2021		December 31, 2020
	(Dollars in millions)
Customer receivables(1)(2)	$	1,493	1,889
Contract assets(3)	73		108
Contract liabilities(4)	680		950

______________________________________________________________________

(1)Reflects gross customer receivables of $1.6 billion and $2.1 billion, net of allowance for credit losses of $102 million and $174 million, at December 31, 2021 and December 31, 2020, respectively.

(2)As of December 31, 2021, amount excludes customer receivables, net reclassified as held for sale of $288 million.

(3)As of December 31, 2021, amount excludes contract assets reclassified as held for sale of $9 million.

(4)As of December 31, 2021, amount excludes contract liabilities reclassified as held for sale of $161 million.

Capitalized contract cost

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


	December 31, 2021
	Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	289	216
Costs incurred	176		151
Amortization	(209)		(149)
Reclassified as held for sale(1)	(34)		(32)
End of period balance	$	222	186


	December 31, 2020
	Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	326	221
Costs incurred	181		141
Amortization	(218)		(146)
End of period balance	$	289	216

______________________________________________________________________

(1)Represents the amounts reclassified as held for sale as of December 31, 2021 related to our planned divestitures. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses.