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Revenue Recognition
12 Months Ended
Dec. 31, 2019
Revenue Recognition [Abstract]  
Revenue Recognition
(3)
Revenue Recognition:
Effective January 1, 2018, we adopted ASU 2014-09, “Revenue from Contracts with Customers,” (ASC 606).

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 year ended December 31,
 
($ in millions)
 
2019
   
2018
   
2017 (1)
 
Data and Internet services
 
$
3,756
   
$
3,878
   
$
3,862
 
Voice services
   
2,500
     
2,721
     
2,864
 
Video services
   
1,005
     
1,085
     
1,304
 
Other
   
477
     
544
     
322
 
                         
Revenue from contracts with customers
   
7,738
     
8,228
     
8,352
 
Subsidy and other regulatory revenue
   
369
     
383
     
776
 
Total revenue
 
$
8,107
   
$
8,611
   
$
9,128
 


 
For the year ended December 31,
 
($ in millions)
 
2019
   
2018
   
2017 (1)
 
Consumer
 
$
4,153
   
$
4,380
   
$
4,476
 
Commercial
   
3,585
     
3,848
     
3,876
 
                         
Revenue from contracts with customers
   
7,738
     
8,228
     
8,352
 
Subsidy and other regulatory revenue
   
369
     
383
     
776
 
Total revenue
 
$
8,107
   
$
8,611
   
$
9,128
 

(1)
Revenues for the year ended December 31, 2017 have not been adjusted under the modified retrospective method of adoption of ASC 606.

Frontier satisfies its obligations to customers by transferring goods and services in exchange for consideration received from the customer. The timing of Frontier’s satisfaction of the performance obligation often differs from the timing of the customer’s payment, which results in the recognition of a contract asset or a contract liability. Frontier recognizes a contract asset or liability when the Company transfers goods or services to a customer and bills an amount which differs from the revenue allocated to the related performance obligations.

The following is a summary of the changes in the assets established for our costs to acquire customers for the years ended December 31, 2019 and 2018:


 
Contract Acquisition Costs
 
($ in millions)
 
Current
   
Noncurrent
 
             
Balance at January 1, 2018
 
$
87
   
$
117
 
Commissions deferred
   
128
     
10
 
Commission costs recognized
   
(108
)
   
-
 
Balance at December 31, 2018
   
107
     
127
 
Commissions deferred
   
138
     
6
 
Commission costs recognized
   
(131
)
   
-
 
Reclass to assets held for sale
   
(9
)
   
(12
)
Balance at December 31, 2019
 
$
105
   
$
121
 

The following is a summary of the changes in the contract assets and contract liabilities for the years ended December 31, 2019 and 2018:


 
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
   
(39
)
   
(12
)
   
(81
)
   
(17
)
Cash received, excluding amounts recognized as revenue
   
-
     
-
     
78
     
16
 
Credits granted, excluding amounts recognized as revenue
   
30
     
1
     
-
     
-
 
Reclassified between Current and Noncurrent
   
5
     
(5
)
   
-
     
-
 
Reclassified to held for sale
   
(3
)
   
(1
)
   
(5
)
   
-
 
Balance at December 31, 2019
 
$
37
   
$
8
   
$
41
   
$
21
 


 
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
   
(49
)
   
(8
)
   
(106
)
   
(13
)
Cash received, excluding amounts recognized as revenue
   
-
     
-
     
129
     
6
 
 Credits granted, excluding amounts recognized as revenue
   
49
     
-
     
-
     
-
 
Reclassified between Current and Noncurrent
   
4
     
(4
)
   
(10
)
   
10
 
Other
   
-
     
-
     
(5
)
   
-
 
Balance at December 31, 2018
 
$
44
   
$
25
   
$
49
   
$
22
 

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 sheet.

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 remaining
performance obligations
 
       
2020
 
$
2,163
 
2021
   
957
 
2022
   
431
 
2023
   
200
 
2024
   
107
 
Thereafter
   
160
 
Total
 
$
4,018
(1) 


(1)
Future performance obligations include $289 million related to our Northwest Operations.