Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from External Customers by Products and Services

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
	March 31, 2019			March 31, 2018
	(Dollars in millions)
Total revenue	$	2,046		2,087
Adjustments for non-ASC 606 revenue (1)	(50		)	(44	)
Total revenue from contracts with customers	$	1,996		2,043

_____________________________________________________________________ 

⁽¹⁾  Includes 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 March 31, 2019 and January 1, 2019:

	March 31, 2019		December 31, 2018
	(Dollars in millions)
Customer receivables (1)	$	699	712
Contract assets	18		19
Contract liabilities	399		393

(1) Gross customer receivables of $716 and $723 million, net of allowance for doubtful accounts of $17 and $11 million, at March 31, 2019 and December 31, 2018, respectively.

The following table provides information about revenue recognized for the three months ended March 31, 2019 and 2018:

	Three Months Ended
	March 31, 2019		March 31, 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)	$	95	97
Performance obligations satisfied in previous periods	—		—

Capitalized Contract Cost

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

	Three Months Ended March 31, 2019					Three Months Ended March 31, 2018
	(Dollars in millions)
	Acquisition Costs			Fulfillment Costs		Acquisition Costs		Fulfillment Costs
Beginning of period balance	$	64		84		13		14
Costs incurred	18			26		15		23
Amortization	(8		)	(13	)	(2	)	(2	)
End of period balance	$	74		97		26		35