Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2020

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 June 30,			Six Months Ended June 30,
	2020		2019	2020	2019
	(Dollars in millions)
Total revenue	$	1,799	2,028	3,717	4,058
Adjustments for non-ASC 606 revenue (1)	(121)		(125)	(242)	(252)
Total revenue from contracts with customers	$	1,678	1,903	3,475	3,806

______________________________________________________________________

⁽¹⁾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 balances of customer receivables, contract assets and contract liabilities as of June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
	(Dollars in millions)
Customer receivables (1)	$	356	430
Contract assets	13		18
Contract liabilities	294		338

______________________________________________________________________

⁽¹⁾Gross customer receivables of $390 million and $462 million, net of allowance for doubtful accounts of $34 million and $32 million, at June 30, 2020 and December 31, 2019, respectively.

Capitalized contract cost

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

	Three Months Ended June 30, 2020			Three Months Ended June 30, 2019
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	84	61	90	57
Costs incurred	13		6	13	15
Amortization	(16)		(8)	(16)	(12)
End of period balance	$	81	59	87	60

	Six Months Ended June 30, 2020			Six Months Ended June 30, 2019
	Acquisition Costs		Fulfillment Costs	Acquisition Costs	Fulfillment Costs
	(Dollars in millions)
Beginning of period balance	$	86	64	90	57
Costs incurred	27		12	29	19
Amortization	(32)		(17)	(32)	(16)
End of period balance	$	81	59	87	60