Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Revenue from External Customers by Products and Services

The following table provides total revenue by segment, sales channel and product category. It also provides 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. The amounts in the table below include revenue for the EMEA business prior to its sales on November 1, 2023. See Note 2—Divestitures of the Latin American, ILEC 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)
Business Segment by Sales Channel and Product Category
Large Enterprise
Grow	$	427	(49)	378	421	(50)	371
Nurture	268		—	268	300	—	300
Harvest	119		—	119	139	—	139
Other	44		(1)	43	51	(1)	50
Total Large Enterprise Revenue	858		(50)	808	911	(51)	860
Mid-Market Enterprise
Grow	207		(6)	201	197	(7)	190
Nurture	188		—	188	219	—	219
Harvest	83		(1)	82	98	(1)	97
Other	8		(1)	7	9	(2)	7
Total Mid-Market Enterprise Revenue	486		(8)	478	523	(10)	513
Public Sector
Grow	125		(21)	104	117	(19)	98
Nurture	87		—	87	107	—	107
Harvest	94		(1)	93	99	—	99
Other	114		—	114	109	—	109
Total Public Sector Revenue	420		(22)	398	432	(19)	413
Wholesale
Grow	260		(62)	198	271	(71)	200
Nurture	192		(7)	185	215	(6)	209
Harvest	275		(38)	237	332	(44)	288
Other	3		—	3	5	—	5
Total Wholesale Revenue	730		(107)	623	823	(121)	702
International and Other
Grow	40		(1)	39	128	(29)	99
Nurture	42		—	42	72	—	72
Harvest	11		—	11	38	—	38
Other	4		—	4	41	—	41
Total International and Other	97		(1)	96	279	(29)	250
Business Segment by Product Category
Grow	1,059		(139)	920	1,134	(176)	958
Nurture	777		(7)	770	913	(6)	907
Harvest	582		(40)	542	706	(45)	661
Other	173		(2)	171	215	(3)	212
Total Business Segment Revenue	2,591		(188)	2,403	2,968	(230)	2,738
Mass Markets Segment by Product Category
Fiber Broadband	170		(4)	166	152	(4)	148
Other Broadband	315		(28)	287	369	(33)	336
Voice and Other	214		(9)	205	249	(9)	240
Total Mass Markets Revenue	699		(41)	658	770	(46)	724
Total Revenue	$	3,290	(229)	3,061	3,738	(276)	3,462

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(1)Includes regulatory revenue and lease revenue not within the scope of ASC 606.

Schedule of Contract with Customer, Asset and Liability

The following table provides balances of customer receivables, contract assets and contract liabilities, net of amounts classified as held for sale, as of March 31, 2024 and December 31, 2023:

	March 31, 2024		December 31, 2023
	(Dollars in millions)
Customer receivables(1)	$	1,289	1,256
Contract assets	26		29
Contract liabilities	710		698

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(1)Reflects gross customer receivables of $1.3 billion, net of allowance for credit losses of $60 million, at March 31, 2024 and December 31, 2023.

Schedule of 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)			(Dollars in millions)
Beginning of period balance(1)	$	182	184	202	192
Costs incurred	33		36	36	40
Amortization	(33)		(31)	(41)	(35)
Change in contract costs held for sale	—		—	(5)	(15)
End of period balance(2)	$	182	189	192	182

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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 $11 million of acquisition costs and $15 million of fulfillment costs classified as held for sale related to the EMEA business.