Revenue Recognition

6 Months Ended

Jun. 30, 2019

(3) Revenue Recognition:

We categorize our products, services and other revenues into the following categories:

Data and Internet services include broadband services for residential and business customers. We provide data transmission services to high volume business customers and other carriers with dedicated high capacity circuits (“nonswitched access”) including services to wireless providers (“wireless backhaul”);

Voice services include traditional local and long-distance wireline services, Voice over Internet Protocol (VoIP) services, as well as a number of unified messaging services offered to our residential and business customers. Voice services also include the long-distance voice origination and termination services that we provide to our business customers and other carriers;

Video services include revenues generated from services provided directly to residential customers through the FiOS^® and Vantage video brands, and through DISH^® satellite TV services;

Other customer revenue includes switched access revenue, sales of customer premise equipment to our business customers, rents collected for collocation services, and revenue from other services and fees. Switched access revenue includes revenues derived from allowing other carriers to use our network to originate and/or terminate their local and long-distance voice traffic (“switched access”). These services are primarily billed on a minutes-of-use basis applying tariffed rates filed with the FCC or state agencies; and

Subsidy and other regulatory revenue includes revenues generated from cost subsidies from state and federal authorities, including the Connect America Fund Phase II.

The following tables provide a summary of revenues, by category:



	For the three months ended June 30,				For the six months ended June 30,
($ in millions)	2019		2018		2019		2018

Data and Internet services	$	963	$	973	$	1,930	$	1,958
Voice services		629		682		1,279		1,384
Video services		260		270		528		550
Other		120		140		244		275
Revenue from contracts with customers ⁽¹⁾		1,972		2,065		3,981		4,167
Subsidy revenue		95		97		187		194
Total revenue	$	2,067	$	2,162	$	4,168	$	4,361

	For the three months ended June 30,				For the six months ended June 30,
($ in millions)	2019		2018		2019		2018

Consumer	$	1,050	$	1,095	$	2,127	$	2,223
Commercial		922		970		1,854		1,944
Revenue from contracts with customers ⁽¹⁾		1,972		2,065		3,981		4,167
Subsidy revenue		95		97		187		194
Total revenue	$	2,067	$	2,162	$	4,168	$	4,361

⁽¹⁾Amount includes approximately $17 million and $35 million of lease revenue for the three and six months ended June 30, 2019.

The opening and closing balances of Frontier’s contract asset and contract liability balances for the six months ended June 30, 2019 and 2018 are as follows:



	Contract Assets				Contract Liabilities
($ in millions)	Current		Noncurrent		Current		Noncurrent

Balance at January 1, 2019	$	44	$	25	$	49	$	22
Revenue recognized included
in opening contract balance		(18)		(5)		(38)		(11)
Cash received, excluding amounts
recognized as revenue		-		-		34		7
Credits granted, excluding amounts
recognized as revenue		17		1		-		-
Other		4		(4)		(1)		1
Reclassified to held for sale		(3)		(1)		(3)		(1)
Balance at June 30, 2019	$	44	$	16	$	41	$	18

	Contract Assets				Contract Liabilities
($ in millions)	Current		Noncurrent		Current		Noncurrent

Balance at January 1, 2018	$	40	$	37	$	41	$	19
Revenue recognized included
in opening contract balance		(21)		-		(64)		-
Cash received, excluding amounts
recognized as revenue		-		-		86		-
Credits granted, excluding amounts
recognized as revenue		27		-		-		-
Other		(4)		4		(12)		6
Balance at June 30, 2018	$	42	$	41	$	51	$	25

Short-term contract assets, Long-term contract assets, Short-term contract liabilities, and Long-term contract liabilities are included in other current assets, other assets, other current liabilities, and other liabilities, respectively, on our consolidated balance sheets.

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period:



($ in millions)	Revenue from contracts with customers
2019 (remaining six months)	$	1,895
2020		1,446
2021		643
2022		324
2023		187
Thereafter		237
Total	$	4,732