Revenue Recognition

12 Months Ended

Dec. 31, 2023

Revenue Recognition [Abstract]

Revenue Recognition

(5) Revenue Recognition:

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

Data and Internet services include broadband services for consumer 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 consumer 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, through various satellite providers, and through partnerships with over-the-top (OTT) video providers. Video services also includes pay-per-view revenues, video on demand, equipment rentals, and video advertising. We have made the strategic decision to limit sales of new traditional TV services focusing on our broadband products and OTT video options;

Other customer revenue includes switched access revenue, 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 CAF II and RDOF.

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

	Successor						Predecessor
	For the year ended		For the year ended		For the eight months		For the four months
	December 31,		December 31,		ended December 31,		ended April 30,
($ in millions)	2023		2022		2021		2021
Data and Internet services	$	3,534	$	3,390	$	2,224	$	1,125
Voice services		1,373		1,498		1,091		647
Video services		430		520		397		223
Other		339		325		246		125
Revenue from contracts
with customers (1)		5,676		5,733		3,958		2,120
Subsidy and other regulatory revenue		75		54		222		111
Total revenue	$	5,751	$	5,787	$	4,180	$	2,231
	Successor						Predecessor
	For the year ended		For the year ended		For the eight months		For the four months
	December 31,		December 31,		ended December 31,		ended April 30,
($ in millions)	2023		2022		2021		2021
Consumer (2)	$	3,097	$	3,116	$	2,125	$	1,133
Business and Wholesale		2,579		2,617		1,833		987
Revenue from contracts
with customers (1)		5,676		5,733		3,958		2,120
Subsidy and other regulatory revenue		75		54		222		111
Total revenue	$	5,751	$	5,787	$	4,180	$	2,231

⁽¹⁾Includes $62 million of lease revenue for the year ended December 31, 2023, $63 million for the year ended December 31, 2022, $21 million for the four months ended April 30, 2021 and $42 million for the eight months ended December 31, 2021.

⁽²⁾Due to changes in methodology during the second quarter of 2021, historical periods have been updated to reflect the comparable amounts.

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

	Contract Liabilities
($ in millions)	Current		Noncurrent
Balance at January 1, 2023	$	28	$	17
Revenue recognized included
in opening contract balance		(37)		(14)
Credits granted, excluding amounts
recognized as revenue		37		18
Reclassified between current
and noncurrent		5		(5)
Balance at December 31, 2023	$	33	$	16
Balance at January 1, 2022	$	27	$	11
Revenue recognized included
in opening contract balance		(30)		(11)
Credits granted, excluding amounts
recognized as revenue		26		22
Reclassified between current
and noncurrent		5		(5)
Balance at December 31, 2022	$	28	$	17

The unsatisfied obligations for retail customers consist of amounts in advance billings, which are expected to be earned within the following monthly billing cycle. Unsatisfied obligations for wholesale customers are based on a point-in-time calculation and determined by the number of circuits provided and the contractual price. These wholesale customer obligations change from period to period based on new circuits added as well as circuits that are terminated.

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.

	Successor
($ in millions)	Revenue from contracts with customers
2024	$	506
2025		186
2026		86
2027		16
2028		7
Thereafter		5
Total	$	806