Revenue Recognition

3 Months Ended

Mar. 31, 2020

(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 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 March 31,
($ in millions)	2020		2019

Data and Internet services	$	932	$	967
Voice services		572		650
Video services		222		268
Other		117		124
Revenue from contracts with customers ⁽¹⁾		1,843		2,009
Subsidy revenue		90		92
Total revenue	$	1,933	$	2,101

	For the three months ended March 31,
($ in millions)	2020		2019

Consumer	$	971	$	1,077
Commercial		872		932
Revenue from contracts with customers ⁽¹⁾		1,843		2,009
Subsidy revenue		90		92
Total revenue	$	1,933	$	2,101

⁽¹⁾Amount includes approximately $17 million and $18 million, of lease revenue for the three months ended March 31, 2020 and 2019, respectively.

The following is a summary of the changes in the contract assets and contract liabilities for the three months ended March 31, 2020 and 2019:



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

Balance at December 31, 2019	$	37	$	8	$	41	$	21
Revenue recognized included
in opening contract balance		(9)		-		(21)		(4)
Cash received, excluding amounts
recognized as revenue		-		-		25		5
Credits granted, excluding amounts
recognized as revenue		1		-		-		-
Reclassified between Current
and Non-Current		-		-		1		(1)
Balance at March 31, 2020	$	29	$	8	$	46	$	21


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

Balance at December 31, 2018	$	44	$	25	$	49	$	22
Revenue recognized included
in opening contract balance		(10)		(4)		(20)		(5)
Cash received, excluding amounts
recognized as revenue		-		-		18		3
Credits granted, excluding amounts
recognized as revenue		11		1		-		-
Balance at March 31, 2019	$	45	$	22	$	47	$	20

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
2020 (remaining nine months)	$	1,096
2021		990
2022		456
2023		193
2024		103
Thereafter		626
Total	$	3,464	⁽¹⁾

⁽¹⁾Future performance obligations include $248 million related to our Northwest Operations. Refer to Note 7.