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Revenue Recognition
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Beginning in the first quarter of 2021, we categorize our products, services and revenue among the following categories:
•Voice and Other, which include primarily local voice services, private line and other legacy services. This category also includes Connect America Fund Phase II ("CAF II") support payments and other operating revenue. We receive support payments from the federal CAF II program. These support payments are government subsidies designed to compensate us for providing certain broadband and telecommunications services in high-cost areas or at discounts to low-income, educational, and healthcare customers. During the twelve months ended December 31, 2021 we recorded approximately $145 million of revenue from the CAF II program that ended December 31, 2021.

•Fiber Infrastructure Services, which include high speed fiber-based and lower speed DSL-based broadband services, and optical network services;

•IP and Data Services, which consist primarily of Ethernet services; and

•Affiliate Services, which are communications services that we also provide to external customers. In addition, we provide to our affiliates application development and support services, network support and technical services.

Reconciliation of Total Revenue to Revenue from Contracts with Customers
The following tables provide our total revenue by product and service category as well as the amount of revenue that is not subject to ASC 606, "Revenue from Contracts with Customers" ("ASC 606"), but is instead governed by other accounting standards:
 Year Ended December 31, 2021
Total Revenue
Adjustments for Non-ASC 606 Revenue(1)
Total Revenue from Contracts with Customers
 (Dollars in millions)
Voice and Other$2,099 (334)1,765 
Fiber Infrastructure1,990 (120)1,870 
IP and Data Services473 — 473 
Affiliate Services2,389 (29)2,360 
Total revenue$6,951 (483)6,468 
Timing of revenue
Goods and services transferred at a point in time$30 
Services performed over time6,438 
Total revenue from contracts with customers$6,468 

 Year Ended December 31, 2020
Total Revenue
Adjustments for Non-ASC 606 Revenue(1)
Total Revenue from Contracts with Customers
 (Dollars in millions)
Voice and Other$2,281 (352)1,929 
Fiber Infrastructure2,033 (123)1,910 
IP and Data Services512 — 512 
Affiliate Services2,487 (4)2,483 
Total revenue$7,313 (479)6,834 
Timing of revenue
Goods and services transferred at a point in time$46 
Services performed over time6,788 
Total revenue from contracts with customers$6,834 
 Year Ended December 31, 2019
Total Revenue
Adjustments for Non-ASC 606 Revenue(1)
Total Revenue from Contracts with Customers
 (Dollars in millions)
Voice and Other$2,496 (376)2,120 
Fiber Infrastructure2,115 (121)1,994 
IP and Data Services568 — 568 
Affiliate Services2,873 — 2,873 
Total revenue$8,052 (497)7,555 
Timing of revenue
Goods and services transferred at a point in time$54 
Services performed over time7,501 
Total revenue from contracts with customers$7,555 
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(1)Includes regulatory revenue and lease revenue not within the scope of ASC 606.

We do not have any single external customer that comprises more than 10% of our total consolidated operating revenue. Substantially all of our consolidated revenue comes from customers located in the United States.

Customer Receivables and Contract Balances

The following table provides balances of customer receivables, contract assets and contract liabilities as of December 31, 2021 and December 31, 2020:
December 31, 2021December 31, 2020
 (Dollars in millions)
Customer receivables (1)
$298 346 
Contract assets10 13 
Contract liabilities317 300 
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(1)Reflects gross customer receivables, including gross affiliate receivables, of $328 million and $396 million, net of allowance for credit losses of $30 million and $50 million, at December 31, 2021 and December 31, 2020, respectively.

Contract liabilities consist of consideration we have received from our customers or billed in advance of providing goods or services promised in the future. We defer recognizing this consideration as revenue until we have satisfied the related performance obligation to the customer. Contract liabilities include recurring services billed one month in advance and installation and maintenance charges that are deferred and recognized over the actual or expected contract term, which ranges from one to five years depending on the service. Contract liabilities are included within deferred revenue in our consolidated balance sheets. During the years ended December 31, 2021 and December 31, 2020, we recognized $199 million and $223 million, respectively, of revenue that was included in contract liabilities of $300 million and $338 million as of January 1, 2021 and 2020, respectively.

Performance Obligations

As of December 31, 2021, our estimated revenue expected to be recognized in the future related to performance obligations associated with existing customer contracts that are partially or wholly unsatisfied is approximately $188 million. We expect to recognize approximately 97% of this revenue through 2024, with the balance recognized thereafter.
These amounts exclude (i) the value of unsatisfied performance obligations for contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed (for example, uncommitted usage or non-recurring charges associated with professional or technical services to be completed), and (ii) contracts that are classified as leasing arrangements that are not subject to ASC 606.

Contract Costs

The following tables provide changes in our contract acquisition costs and fulfillment costs:
Year Ended December 31, 2021
Acquisition CostsFulfillment Costs
 (Dollars in millions)
Beginning of period balance$73 54 
Costs incurred49 27 
Amortization(58)(34)
End of period balance$64 47 

Year Ended December 31, 2020
Acquisition CostsFulfillment Costs
 (Dollars in millions)
Beginning of period balance$86 64 
Costs incurred49 23 
Amortization(62)(33)
End of period balance$73 54 

Acquisition costs include commission fees paid to employees as a result of obtaining contracts. Fulfillment costs include third party and internal costs associated with the provision, installation and activation of communications services to customers, including labor and materials consumed for these activities.
Deferred acquisition and fulfillment costs are amortized based on the transfer of services on a straight-line basis over the average contract life of 30 months for mass markets customers and average contract life of 29 months for business customers. Amortized fulfillment costs are included in cost of services and products and amortized acquisition costs are included in selling, general and administrative expenses in our consolidated statements of operations. The amount of these deferred costs that are anticipated to be amortized in the next 12 months are included in other current assets on our consolidated balance sheets. The amount of deferred costs expected to be amortized beyond the next 12 months is included in other non-current assets on our consolidated balance sheets. Deferred acquisition and fulfillment costs are assessed for impairment on an annual basis.