Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Schedule of Revenue

The following table provides the amount of revenue that is not subject to ASC 606, but is instead governed by other accounting standards:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019		2018
	(Dollars in millions)
Total revenue	$	2,039		2,149		6,145		6,380
Adjustments for non-ASC 606 revenue (1)	(123		)	(82	)	(375	)	(240	)
Total revenue from contracts with customers	$	1,916		2,067		5,770		6,140

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Includes regulatory revenue, lease revenue, sublease rental income and revenue from fiber capacity lease arrangements which are not within the scope of ASC 606.

Contract with customer, asset and liability

The following table provides information about revenue recognized for the three and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30,			Nine Months Ended September 30,
	2019		2018	2019	2018
	(Dollars in millions)
Revenue recognized in the period from:
Amounts included in contract liability at the beginning of the period (January 1, 2019 and 2018, respectively)	$	4	11	269	291
Performance obligations satisfied in previous periods	—		—	—	—

The following table provides balances of customer receivables, contract assets and contract liabilities as of September 30, 2019 and December 31, 2018:

	September 30, 2019		December 31, 2018
	(Dollars in millions)
Customer receivables (1)	$	493	518
Contract liabilities	318		207
Contract assets	75		64

(1)

Gross customer receivables of $528 million and $554 million, net of allowance for doubtful accounts of $35 million and $36 million, at September 30, 2019 and December 31, 2018, respectively.

Capitalized contract cost

The following table provides changes in our contract acquisition costs and fulfillment costs:

	Three Months Ended September 30, 2019					Three Months Ended September 30, 2018
	Acquisition Costs			Fulfillment Costs		Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	87		60		89		58
Costs incurred	15			10		29		13
Amortization	(15		)	(8	)	(29	)	(13	)
End of period balance	$	87		62		89		58

	Nine Months Ended September 30, 2019					Nine Months Ended September 30, 2018
	Acquisition Costs			Fulfillment Costs		Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	90		57		91		61
Costs incurred	44			29		45		20
Amortization	(47		)	(24	)	(47	)	(23	)
End of period balance	$	87		62		89		58