Revenue Recognition

3 Months Ended

Mar. 31, 2021

Revenue Recognition [Abstract]

Revenue Recognition

(4) 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 consumer customers as linear terrestrial television services, and through Dish^® satellite TV service;

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. Prior year revenues in the following tables include revenues for the Northwest Operations for the three months ended March 31, 2020 (prior to its disposal):

	For the three months ended March 31,
($ in millions)	2021		2020
Data and Internet services	$	842	$	932
Voice services		487		572
Video services		169		222
Other		95		117
Revenue from contracts with customers (1)		1,593		1,843
Subsidy and other revenue		83		90
Total revenue	$	1,676	$	1,933
	For the three months ended March 31,
($ in millions)	2021		2020
Consumer	$	844	$	971
Commercial		749		872
Revenue from contracts with customers (1)		1,593		1,843
Subsidy and other revenue		83		90
Total revenue	$	1,676	$	1,933

⁽¹⁾Includes approximately $16 million and $17 million of lease revenue for the three months ended March 31, 2021 and 2020, respectively.

The following is a summary of the changes in the contract assets and contract liabilities:

	Contract Assets				Contract Liabilities
($ in millions)	Current		Noncurrent		Current		Noncurrent
Balance at December 31, 2020	$	6	$	9	$	58	$	20
Revenue recognized included
in opening contract balance		(4)		-		(17)		(2)
Cash received, excluding amounts
recognized as revenue		-		-		17		1
Balance at March 31, 2021	$	2	$	9	$	58	$	19
	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 noncurrent		-		-		1		(1)
Balance at March 31, 2020	$	29	$	8	$	46	$	21

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
2021 (remaining nine months)	$	1,091
2022		712
2023		316
2024		110
2025		62
Thereafter		128
Total	$	2,419